WASHINGTON, D.C. — The U.S. Endowment for Forestry and Communities has launched a Request for Proposals (RFP) to assess the feasibility of repurposing closed wood products manufacturing facilities, including pulp and paper mills, for bioenergy. The initiative will make available up to $500,000 in pre-development funding to support one or two facilities across the United States.
Across the country, idled wood products facilities have left behind industrial infrastructure, utility connections and skilled workforce capacity at a time when forest-dependent regions are urgently seeking new economic anchors. Since 2015, more than 40 U.S. pulp and paper mills have closed, removing roughly 60 million green tons of annual wood demand from rural communities.
The Endowment’s market initiative seeks to determine whether these sites can be reactivated as biopower generation or biofuel production facilities, creating new markets for low-value wood fiber and supplying renewable energy to a growing economy.
Selected projects will conduct pre-development assessments equivalent to a Front-End Loading Level 2 (FEL-2) analysis, producing the technical, economic and market data needed to support investment and development decisions. Analyses will address:
- Site-level due diligence and engineering feasibility.
- Economic and financial viability.
- Infrastructure requirements and financing structures.
- Project risks and mitigation strategies.
- Community and workforce considerations.
- Funding will be structured as a Program-Related Investment (PRI) or a grant, repayable if the project proceeds to construction financing, or forgiven as a grant if the project does not advance.
Eligible applicants include U.S. based private companies or other organizations with proven experience in energy project development, wood products manufacturing, data center development, or closely related infrastructure projects. Applicants must demonstrate site control or authorization to evaluate the facility and should be able to show that the project can realistically advance to implementation.
RFP Posted: June 15, 2026
Questions Due: July 17, 2026
Responses Posted: July 24, 2026
Proposals Due: August 6, 2026, by 5:00 PM EDT
Contracting and Project Initiation: September 2026
Proposals must be submitted via the Endowment’s online application portal at usendowment.my.site.com/grants. Full application details and the complete RFP are available at usendowment.org/funding-opportunities.
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