On August 5, 2026, the U.S. Forest Service announced $105.5 million in grants distributed across 177 projects in 44 states and the District of Columbia. Delivered through the Wood Innovations, Community Wood, and Wood Products Infrastructure Assistance programs, the funding targets biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More manufacturing, wood energy systems, and forest products infrastructure. Major recipients establishing or expanding biochar capacity include Pallet & Lumber Supply LLC in Arizona, West Biofuels LLC in California, FIX Infrastructure LLC in Oregon, Robison Carbon LLC in Louisiana, and RENEW Biomaterials LLC in Washington.

The primary operational challenge addressed by this funding initiative is the sustainable management of low-value forest biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More and mill residuals. Unprocessed residual wood and forest restoration thinnings significantly heighten wildfire risks near federal and tribal lands if left untreated. Furthermore, regional sawmills and forest product businesses frequently struggle with limited market pathways and elevated processing costs for low-value material, threatening rural employment and active forest management goals.

To resolve these feedstockFeedstock refers to the raw organic material used to produce biochar. This can include a wide range of materials, such as wood chips, agricultural residues, and animal manure. More and operational bottlenecks, the grant allocations fund advanced conversion technologies and infrastructure integration. Pallet & Lumber Supply LLC received $300,000 in Wood Innovations funding alongside $595,000 in Community Wood funding to engineer and deploy a combined-heat-and-power system integrated with a continuous pyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More reactor. West Biofuels LLC secured $500,000 to construct a dual wood energy and biochar facility, while FIX Infrastructure LLC obtained $300,000 to collocate biochar production directly at an Oregon sawmill. Additionally, Robison Carbon LLC was awarded $1 million to install two continuous pyrolysis reactors targeting Southern Yellow Pine veneer chips, and RENEW Biomaterials LLC received $1 million for a rotary pyrolysis unit in Washington.

These capital injections yield tangible market expansion and forest risk reduction outcomes across the United States. Pallet & Lumber Supply’s system will expand low-value wood processing by 12,000 tons annually in Arizona, while West Biofuels will absorb 30,000 tons per year in California. FIX Infrastructure expects to process 20,000 tons of mill residuals annually. Collectively, these facilities establish scalable market pathways for forest residuals, stabilize rural employment, and enhance wildfire mitigation efforts across public and tribal forest lands.