Northern Pulp is requesting a five-week extension to assess the financial feasibility of a proposed bioproducts hub in Liverpool. The company says its financial model does not currently meet the required 14 percent internal rate of return (IRR) agreed upon in a settlement with the province last year. The Nova Scotia government has approved the extension and says it remains open to forestry-related projects, whether through Northern Pulp or other initiatives.

Northern Pulp has been conducting a feasibility study since May 2024, engaging with stakeholders including government officials, the forestry sector, and First Nations representatives. The proposed facility would require more than $2.5 billion in investment and would produce Northern Bleached Softwood Kraft pulp, biogas, biochemicals, and bioenergy. The company says it will use the extension period to explore financing options but will also prepare for a potential sale of its assets if the project does not proceed.

The province says it is disappointed in the project’s financial uncertainty but emphasizes that discussions on new forestry opportunities remain active. It pointed to other initiatives, such as those involving Simply Blue and Vyterra Renewables, as part of its broader strategy for the sector.

A hearing before the Companies’ Creditors Arrangement Act (CCAA) court is scheduled for March 14.