March 7, 2026 – HALIFAX, NS – Details of a new significant cost-sharing incentive – including full reimbursement of the first $2 million per well are now available as part of the Call For Participation issued by the Nova Scotia Subsurface Energy Research and Development Investment Program.
“Nova Scotia has enough onshore natural gas to meet our needs for 200 years,” said Premier Tim Houston. “Yet we currently import all our natural gas from or through the U.S., exposing the province to market volatility, supply chain constraints, and exchange rate risk. We’ve mapped potential onshore resources, and the Subsurface Energy R&D Investment Program is designed to show how this gas can be recovered safely, through a controlled, research driven approach – providing the scientific evidence needed for sound policy and environmental protection.”
The international call for industry participants signals the start of program activities to help understand the potential of Nova Scotia’s onshore natural gas deposits and support informed, evidence-based energy and climate decisions. The call includes incentives to help participants offset early-stage exploration costs.
Incentive Structure
- Incentive applied on a per-well basis
- Reimbursement structure (tiered):
- 100% reimbursement of the first $2 million CAD of eligible costs
- Followed by 50% reimbursement up to reimbursement cap
- Reimbursement Cap: $5 million CAD per well
The Government of Nova Scotia has engaged Dalhousie University as administrative lead, focusing on program administration, research leadership, and community engagement.
“The Call for Participation is an important milestone in this initiative,” said Graham Gagnon, vice-president, research and innovation, Dalhousie University. “This work will generate essential data to help the Province assess both the resource potential and readiness for onshore natural gas development.”
Dalhousie is administering the $30M (Can) from the Province, including a $24.3M reimbursement program for participating firms. The remaining $5.7M is for administering the research and engagement initiatives including undertaking research to determine baseline infrastructure, environmental, and geological data; providing independent expert analysis on exploration and research findings in a report to the Province; and engaging with communities/public as needed in respect of the project.
With the guidance of a Technical Advisory Committee, Dalhousie University will determine qualification for the program based on the following weighted criteria:
- Corporate governance and sustainability framework – 25%
- Technical competency of personnel / organization – 25%
- Performance track record on analogous programs – operational, HSE, regulatory compliance – 25%
- Financial capability – 25%
After applications are evaluated, the Province will negotiate agreements with successful proponents. Proponents will undertake field and analytical work that contributes meaningful scientific data to the overall research initiative.
The Program includes two phases:
Exploratory Drilling: Proponents propose drilling locations, geological assessments, and environmental procedures; and
Flow Testing, Engineering and Production: Proponents evaluate well performance and demonstrate enhanced recovery techniques.
Full submissions are due by April 15, 2026. Qualified proponents will be identified by April 30, 2026.