U.S. Endowment opens $500,000 funding call for closed mill bioenergy studies

The U.S. Endowment for Forestry and Communities has opened a request for proposals to test whether closed wood products facilities can be repurposed for bioenergy. The effort could steer new investment to forest-dependent communities hit by mill closures and falling wood demand. Why it matters: - Closed mills have left forest-dependent regions with idle industrial sites, utility hookups and experienced workers. - The Endowment is trying to determine whether those assets can support new biopower or biofuel projects. - The effort targets new markets for low-value wood fiber and renewable energy development. - Since 2015, more than 40 U.S. pulp and paper mills have closed, cutting about 60 million green tons of annual wood demand from rural communities. What happened: - The U.S. Endowment for Forestry and Communities launched a request for proposals on June 15, 2026. - The funding call will support feasibility work on repurposing closed wood products manufacturing facilities, including pulp and paper mills, for bioenergy. - The Endowment will make up to $500,000 available for pre-development work at one or two facilities in the United States. The details: - Selected projects will complete pre-development assessments equivalent to a Front-End Loading Level 2, or FEL-2, analysis. - The studies will cover site-level due diligence and engineering feasibility. - The studies will also examine economic and financial viability. - Project teams must assess infrastructure needs and financing structures. - The work must include project risks, mitigation strategies, community considerations and workforce considerations. - Funding may be structured as a Program-Related Investment or a grant. - The investment would be repayable if the project advances to construction financing. - The funding would be forgiven as a grant if the project does not move forward. - Eligible applicants include U.S.-based private companies or other organizations with experience in energy project development, wood products manufacturing, data center development or related infrastructure projects. - Applicants must show site control or authorization to evaluate the facility. - Applicants must also show that the project can realistically advance to implementation. - Proposals must be submitted through the Endowment’s online application portal: application portal . - Full application details and the complete RFP are available at funding opportunities . - Key dates include questions due July 17, 2026; responses posted July 24, 2026; proposals due August 6, 2026, by 5:00 PM EDT; and contracting and project initiation in September 2026. Between the lines: - The initiative reflects a bet that existing forest-industry infrastructure can be reused instead of rebuilt from scratch. - The focus on pre-development funding suggests the Endowment wants to de-risk early technical and market questions before larger capital is committed. - Pete Madden, president and CEO of the U.S. Endowment for Forestry and Communities, said working forests depend on working markets and that mill closures remove both economic activity and a buyer for low-value wood. What’s next: - The Endowment will review proposals after the August 6 deadline. - Contracting and project initiation are expected in September 2026. - Successful projects could help determine whether closed mill sites can become biopower generation or biofuel production facilities. - The findings could shape future investment in rural energy and forestry markets. The bottom line: - The Endowment is using early-stage funding to test whether shuttered mills can become a new platform for renewable energy and rural economic recovery.