It’s no secret that the United States government funds biomass projects. Uncle Sam awarded $574.8 million in 2024 to for-profit organizations working with biomass. Of that, $560 million went to three energy demonstration projects, with the remaining $15.3 million going to 39 other projects with an average award of $393,000.
You may wonder, though, whether such generosity will continue. After all, President Donald Trump’s administration has been slashing agencies’ budgets with specific aim at federal aid.
Fortunately, while federal funds will not continue at the levels they have during the past five years, they are unlikely to shrink much beyond what was typical prior to the pandemic. Plus, there is available funding outside Washington, D.C., from state and private funders.
Current Policy on Biomass
The first reason why federal grant funding is unlikely to disappear is that the Trump administration does not oppose grants. During Trump’s first term, the government routinely granted more funds than what was typical during the Obama years, especially to for-profit entities (bail-out dollars during the Great Recession aside). Prior to the pandemic, Trump’s administration granted an average of $5.8 billion annually to for-profits versus the $4.9 billion average of President Obama’s second term.
What bodes well for biomass is that it aligns with current administrative priorities—namely, domestic energy production, manufacturing and export markets. Moreover, the administration is also pushing for more timber sales on federal lands. It clearly backs the wood product market.
Of course, there’s no guarantee there will be many opportunities specific to biomass. Renewable energy, a main driver for biomass spending during the past four years, isn’t one of Trump’s priorities. Still, markets have changed, and opportunities for biomass are expanding with the advent of industrial-scale biochar.
Federal Grant Programs for Biomass
For these reasons, federal biomass grants will probably continue to some degree. A few programs under which biomass projects will likely remain eligible include:
• U.S. Forest Service Wood Innovation Program
• U.S. Forest Service Wood Products Infrastructure Assistance
• USDA Rural Development Program
• U.S. Department of Energy: various research grants
• Various agencies: Small Business Innovation Research Program
Other Funding
Among states, grant availability varies. Each state has unique priorities and approaches to economic development. Many offer job creation tax credits. Many also offer incentives to growing markets, such as biofuels. Still, others generally encourage manufacturing and other industrial activities.
Private funders are another source for grants, though to interest them, your organization must be strongly mission-driven or deliver definitively positive impacts. There’s also the challenge of eligibility. Most private funders limit funds to nonprofits.
Don’t let this discourage you, because you can work around the requirement by applying for a grant through a fiscal sponsor. Fiscal sponsors are nonprofits that take on the responsibility of administering a grant—doling out funds, completing reports, etc. As such, they receive the funds and funnel them to you. The catch is that the fiscal sponsor will likely take a large portion of the funding to cover their risk and administrative costs.
Another possible workaround is to partner with your local government or area’s economic development corporation. Again, these organizations would receive the money and manage it but may not require a steep overhead fee.
Discovering Grants
When you search for funding, it’s helpful to look beyond the word “grant.” Grants really include a broad range of programs that provide free or monetary incentives. These include traditional grants, tax credits, tax liability reduction, government-backed, low-interest loans and technical assistance.
Many tax credit programs work like grants in that you must apply for them and receive state approval before receiving funds. It isn’t a matter of merely filling out a tax form. The same goes for programs that adjust tax liability.
Government-backed loans offer another route for project funding. Because they are less risky, lenders can offer them at below-market rates.
Technical assistance is also a form of grant, but instead of receiving money, you receive professional expertise or service.
How to Find Grants
As you search for grants, look through various lenses. Consider your industry. For example, look for grants that support manufacturing, biofuel or forest products. States tend to broadly label eligibility for economic incentives, which is why it’s good to take a macroscopic view of your project categories.
Next, consider the actual work your project entails. Are you managing biomass, or organizing a capital project? What you do is an important lens because many grants are characterized by their support for specific activities. Also, assess your project’s impacts. Funders look for projects that help them achieve specific goals. So, consider everything that your project positively affects.
Last, consider where your project is located. Many more grants will become available to you if you operate in a rural area or an area with high unemployment. There may also be grants available from or for your city or county.
Are You Ready for a Grant?
While researching grants, it’s okay if you’re working with back-of-a-napkin details, but when it comes time to apply for a grant, the following boxes need to be checked.
A location. If you can’t pin your project to a specific address, you aren’t ready to apply for a grant (projects designed to take place over a regional or geological area aside).
A team. You need a competent team to obtain any substantial grant. Funders rarely give money to individuals.
A timeline. Funders want milestones by which they can measure your progress, and to give them an idea of when they’ll need to expend funds.
A budget. By the time you write a grant application, you should have a firm grasp on costs. You should be able to back them up with quotes and research. Plan to account for equipment, employee time, contractors, overhead, travel, supplies and fees, among other measurable expenses.
Financial stability. If your business hinges on receiving a grant, I recommend pursuing other types of funding. Most funders provide grants on a reimbursement basis, meaning you spend money before receiving funds. So, if you don’t have enough cash to operate, a grant won’t help you. You may, of course, request to receive funds before you incur costs, but this is not the norm. For this reason, it’s best to think about grants as a tool to boost your return on investment, not as something that will make or break your business.
Partners and support. Spend time creating partnerships. Ideally, you should supply at least three letters of support per application, but it doesn’t hurt to have more. Beyond vendors, consider everyone who has a stake in your project and ask them to write a letter: buyers, city officials, associations and others.
Conclusion
The specifics of your project ultimately determine what grant funding, if any, is available for it. Your preparedness and project details such as location its impacts all factor into how many opportunities you’ll have available to you. To find them, you just need the right lens.
