Driving Innovation in the Hardwood Industry: How Technology and USDA Forest Service Grants are Shaping the Future

November 4, 2024

by NHLA

Biomass EnergyGrant FundingGreen TechnologyHardwood Industry InnovationLumber TechnologyUSDA Forest Service GrantsWood InnovationsWood Products Innovation

At the 127th NHLA Annual Convention, I had the pleasure of moderating the “Navigating the Forest Service Wood Innovations Grants” panel. The room was filled with over 50 eager attendees, all keen to learn how grant funding can support technological advancements in the hardwood industry. During the session, an attendee asked panelist Charlie Becker from the USDA Forest Service, “Do these grant funds support used machinery?” Charlie responded, “Yes. Honestly, I think much of the equipment funded with these grants includes used.” His answer highlighted how crucial these grants are in helping businesses adopt the latest technologies, even on a budget.

Panelist Claire Getty from Thompson Appalachian Hardwoods, a grant recipient, shared a similar sentiment, encouraging the audience to view “challenges as opportunities.” She pointed out that while technology is advancing rapidly, grants like these help bridge the gap for businesses to adapt and thrive in this evolving landscape.

The discussion made it clear: technology isn’t just a buzzword in the hardwood industry—it’s a driving force behind its evolution, largely enabled through grant funding. Technological advancements supported by programs like the Wood Innovations Grant transform operations from optimizing log processing to reducing waste. Below are some key innovations, funded by these grants, that are reshaping the industry and driving it toward a more efficient and sustainable future.

TECHNOLOGICAL ADVANCEMENTS IN HARDWOOD
Lumber Grading Technologies
One example of how the Forest Service’s Wood Innovation Grant (WIG) drives technological advancements is the $200,000 grant awarded to Michigan Technological University. This funding is used to demonstrate structural lumber grading technologies for undervalued hardwood species, such as Red Maple. The project uses Machine Stress Rating (MSR) and visual grading to compare low-grade lumber, providing a more efficient and accurate evaluation of the wood’s structural integrity. These technologies help maximize the potential of hardwood species that are often overlooked, offering new opportunities for their use in construction and other applications.

Biomass Energy Projects
Another notable project supported by grant funding is the $945,254 awarded to North Fork Lumber in Goshen, VA, through the Forest Service Community Wood (CW) program. This grant expands the company’s production capacity to utilize more wood from Federal and private forests by installing new biomass-fueled kilns and upgrading existing sawmill equipment. The funding is allocated explicitly for new dry kilns, a boiler, and a dip tank, all contributing to more efficient and sustainable wood processing. By adopting biomass technology, North Fork Lumber increases its operational efficiency and reduces its environmental footprint by utilizing renewable energy sources.

Lumber Edgers and Upgrading Log Trailers
In Menominee, WI, Menominee Tribal Enterprises was awarded $866,062 through the Forest Service Wood Product Infrastructure Assistance (WPIA) program. The funding is being used to enhance efficiency and utilization within the enterprise, specifically by optimizing their lumber edger and upgrading log trailers. These improvements enable the company to process logs and transport materials more efficiently, maximizing each harvest and increasing utilization and management on public, tribal and private forest-lands. This project highlights how grant funding can drive opera-tional advancements, allowing businesses to scale their capabilities and meet the increasing demands of the modern hardwood industry.

OVERVIEW OF USDA FOREST SERVICE GRANTS
To build and strengthen markets, support efficient processing, and help retain our critical wood products infrastructure, the Forest Service uses three key grant programs: Wood Innovations, Community Wood, and Wood Products Infrastructure Assistance. Authorized under the 2018 Agricultural Improvement Act (Farm Bill), the Wood Innovations and Community Wood Grant programs are funded through annual appropriations (hazardous fuels), the Bipartisan Infrastructure Law, and the Inflation Reduction Act. These programs and projects, directly and indirectly, address the nation-wide challenge of restoring healthy forests for all landowners and reducing the risk of catastrophic wildfires, disease, and infestations by retaining or expanding markets and strengthening the industry. Investments support forest management activities and reduce costs by creating market demand for wood products and wood energy.

• In May 2024, the Wood Innovations Program awarded grants to 171 projects totaling nearly $74 million in funding across 41 states and American Samoa.
• Wood Innovations Grants – 117 projects for $31.3 million
• Community Wood Grants – 18 projects for 14.9 million
• Wood Products Infrastructure Assistance Grants – 36 projects for$27.8 million

The USDA Forest Service’s Wood Innovations Grant Program is a crucial driver of technological advancements in the hardwood and wood energy sectors. Designed to expand and support wood prod-ucts and energy markets across the U.S., the program encourages the adoption of cutting-edge technologies that enhance sustainability and productivity. By funding projects integrating innovations like biomass energy systems and advanced wood processing techniques, the grant program ensures that U.S. forests are managed sustainably while bolstering local communities’ economic and environmental health. Eligible applicants include for-profit entities, local governments, Indian tribes, and educational institutions, all of whom can apply to advance technological solutions within their operations.

Charlie Becker emphasized the program’s impact: “Part of the Wood Innovations Program’s goal is to improve the production of and markets for wood products by enhancing the efficiency and competitiveness of the forest industry. Supporting mill upgrades like computerized networks, optical scanners, graders, Machine Stress Rating (MSR), and other technologies will help hardwood lumber manufacturers expand their opportunities and improve utilization and management of the hardwood resource.”

Technology is at the heart of this initiative, with funding priorities emphasizing projects that utilize innovative wood products, advanced machinery, and emerging energy technologies. Proposals that create markets for wood and biomass from forest health or restoration projects or support the development of mass timber and other innovative wood materials are highly prioritized. Grants of up to
$300,000 are typically available, with more prominent awards of up to $1,000,000 for projects utilizing Federal or Tribal timber or involving advanced wood energy systems. Each of the grant programs requires applicants to provide matched or leveraged funds towards the proposal. These vary depending on program, but roughly are a 1:1 match. Applications for the Wood Innovations Grant Program should open during National Forest Products Week in October, with submissions due in December. Prior to submission, applicants are required to register with the System for Award Management (SAM) and encouraged to connect with their regional Wood Innovations Coordinators. With technology playing a critical role in the success of these projects, the program continues to push the hardwood industry into the digital age, funding advancements that enable sustainable and efficient operations. For more application details and funding, applicants can contact the program’s regional coordinators with the QR code below or National Grant Managers:

Wood Innovations: Collin Buntrock, at collin.buntrock@usda.gov
Community Wood: Sabina Dhungana at sabina.dhungana@usda.gov
Wood Products Infrastructure Assistance: Adam Smith at adam.smith5@usda.gov

For assistance with developing proposals, companies are encouraged to connect with regional coordinators, as they can provide insights tailored to specific projects. Working closely with these coordinators can ensure that proposals align with grant requirements and have the best chance of success.

WORKING WITH GRANT CONSULTANTS
When applying for USDA Forest Service grants, companies often consult consultants to guide the complex application process. Panelist Joel Dulin from Jozana Grant Services emphasized the importance of thorough preparation: “The best thing companies can do to prepare an application is to read the NOFO (notice of funding opportunity) in detail and then speak to their regional coordinator about their project. These steps ensure they include the necessary information in their application and do not spend precious hours applying with an ineligible project.” By closely following the NOFO and consulting regional coordinators, applicants can significantly improve their chances of success.

Consultants like Dulin are crucial in helping businesses navigate the technical details of grant applications. Whether it’s ensuring eligibility, understanding funding priorities, or providing insight on project presentation, grant consultants guide companies through every step. This assistance is precious in an industry where adopting new technologies, like AI and biomass energy, can make or break a business’s competitive edge. Working with a consultant ensures that companies are prepared to meet the application criteria and positioned to maximize the impact of the grant funds on their technological advancements.

SEEKING CHALLENGES AS OPPORTUNITIES
In closing, the story of Thompson Appalachian Hardwoods in Huntland, TN, is a powerful example of how technology and grant funding can transform operations. Their latest project, the “Log Merchandising System for Expanded Forest Utilization,” received a $300,000 WIG award and is part of their new industrial sawmill. This project supports expanded forest utilization through state-of-the-art equipment and engineering.

Previously, Thompson Appalachian Hardwoods sent residuals like sawdust to the Jack Daniels distillery for energy production. When the distillery switched energy sources, the business faced a challenge: managing the surplus of residuals. With a $250,000 WIG grant for their “Generate Wood Energy Onsite from Sawmill Low-Value Waste Products” project, Thompson Appalachian Hardwoods installed a boiler to convert waste into energy, replacing reliance on propane. Claire Getty explained, “Through the USFS Wood Innovations Grant Program, we streamlined the energy sources for our dry kiln operation from three fuel types—electricity, propane, and biomass—to biomass only. This transition has resulted in annual savings of nearly $450,000 in propane expenses, demonstrating substantial financial and environmental benefits.”

This example underscores the broader theme of how technological innovation, supported by grants like those offered by the USDA Forest Service, drives the hardwood industry forward. By embracing these opportunities, businesses can enhance efficiency and contribute to more sustainable and resilient operations, securing their place in the industry’s future.

To further explore grant opportunities mentioned in the article, interested readers can directly contact USDA Forest Service specialists for guidance.

Charlie Becker, Wood Innovations Specialist
Email: charles.becker@usda.gov | Phone: (608) 231-9326

Additionally, for more details on USDA Forest Service grant programs like the Wood Innovation Grant (WIG), Community Wood (CW) Grant, or Wood Products Infrastructure Assistance (WPIA), visit their Wood Innovations Programs page by scanning the first QR code.