Charlottetown — A Charlottetown-founded organisation that helps companies develop products from biological sources is receiving a major federal investment aimed at scaling Canada’s bio-based economy.
Funding to support startups and processing capacity
Natural Products Canada will receive $50 million from the federal government to support small and medium enterprises that make bio-based products, the federal Agriculture and Agri-Food Minister announced Tuesday. The organisation, which began in Charlottetown and now works with companies across the country, says it has supported about 1,800 companies over the past decade.
The minister, Heath MacDonald — member of Parliament for Malpeque — said the money will serve two primary purposes: provide seed funding to startups and help companies expand processing capacity. "One is for seed for startups and the second part is processing, where companies that want to increase their capacity here," he said, noting the investment aligns with Ottawa’s approach to national food security.
"We are so excited. $50 million can go a long way to help small and medium enterprises in the Canadian bioeconomy," said Shelley King, founder and CEO of Natural Products Canada. "It makes it even more special that it’s in Charlottetown, which is where we started Natural Products Canada 10 years ago."
What Natural Products Canada does
Founded in Charlottetown a decade ago, the organisation helps early-stage and growing companies develop products derived from natural biological materials — alternatives to petrochemical goods that, the group says, are better for people, animals and the environment. Its core role includes advising on product development and helping firms attract management and investment needed to scale production.
Shelley King, the group’s founder and chief executive, said the federal funding will allow Natural Products Canada to invest directly in young companies so they can hire experienced managers and expand their operations.
Local and national implications
For Prince Edward Island, the announcement underscores the province’s role in a growing national sector that links agriculture, innovation and manufacturing. Local companies that deal in plant-based ingredients, biomaterials and natural health products may be among the firms eligible for support, although the organisation has worked with firms across Canada.
At the national level, the funding contributes to Ottawa’s broader strategy around food security and economic development in agri‑food and bio-based industries. The minister framed the investment as part of efforts to build capacity and stimulate innovation in sectors that can reduce reliance on fossil-based inputs.
How the funding could be used
- Seed investments for start-ups developing bio-based products.
- Funding to expand processing and manufacturing capacity for companies seeking to scale up.
- Direct investment to help firms hire experienced management and technical teams.
Natural Products Canada has not released a detailed breakdown of how the $50 million will be allocated across programs, regions or individual firms. The organisation has however emphasised that the funding will be used to accelerate growth for small and medium enterprises within the bioeconomy.
Background and track record
Over roughly 10 years since its founding in Charlottetown, Natural Products Canada says it has provided support to about 1,800 companies. That track record formed part of the pitch for federal support, signalling the organisation’s experience in shepherding early-stage natural-product ventures toward commercialization.
Officials have previously highlighted how bio-based products — made from plants, fungi, algae or other biological sources — can displace petrochemical-based materials in applications ranging from personal care and food ingredients to specialty chemicals.
The new funding is intended to help ensure Canadian firms can move beyond prototype stages, build processing facilities and compete in domestic and international markets.
Next steps
Natural Products Canada and the federal department of Agriculture and Agri‑Food will need to outline program details, application timelines and eligibility criteria before investments begin flowing to companies. Companies and stakeholders in P.E.I. and across the country will be watching for those operational details in the coming weeks and months.
For now, the announcement serves as a signal that Ottawa is committing public dollars to accelerate the development of a bio-based economy, and that a Charlottetown-born organisation will be at the centre of that effort.
