The Sydney-based Verschuren Centre, which provides startups with access to industrial fermentation and bioprocessing infrastructure, is receiving a $1 million grant from the federal government to expand its operating capacity by a factor of 15. Two resident companies, Dispersa and Cotex Technologies, are also both receiving $500,000 loans.

Laval, Que.-based Dispersa, which has its research and development operations in Sydney, is developing biodegradable surfactants, which are ingredients used in consumer products likes soaps, shampoos and cosmetics to break down oils. CoteX, meanwhile, has developed a more efficient method for applying delayed-release coatings to fertilizer pellets.

The money for the Verschuren Centre is coming from the government’s Canada Coal Transition Initiative, which involves spending $55 million on the East Coast via the Atlantic Canada Opportunities Agency to facilitate the transition to a low-carbon economy. The money for Dispersa and Cotex is from ACOA’s Business Scale-up and Productivity program.

“This facility enables scaling of these and many more technologies into the marketplace to positively impact sustainable development goals for companies, institutions and consumers,” said Verschuren Centre CEO Beth Mason in a statement. “Impacts from investment in these technologies touch our lives in almost every sector from preventative health, through smart materials and into food and agriculture.”

The centre's new funding also builds on $926,500 from the Nova Scotia Forestry Innovation Transition Trust, anounced in May to help with the commercialization of forestry- or biomass preservation-related innovations.

Founded in 2018 by chemical engineer Santosh Yadav, CoteX relocated to Cape Breton from India to access the Verschuren Centre’s fermentation facilities, which are a rarity even at the international level.

And Dispersa CEO Nivatha Balendra was inspired to start her business when, as a 17-year-old, a deadly train derailment and oil spill in Lac-Mégantic, Quebec, sparked her interest in environmentally friendly solutions to oil contamination. In April, the company anounced it had closed a $3 million equity and debt funding round led by Invest Nova Scotia.

"Scaling up production is a crucial phase towards commercialization for industrial biotechnology startups like Dispersa," said Balendra. "This long-term partnership represents the steppingstone of Dispersa’s growing presence in Cape Breton and we are excited to continue building our operations across Nova Scotia in the years to come."