Grant will provide upgrades to feedstock drying systems to increase wood pellet manufacturing capacity

Forest Energy Corporation received a $995,000 Project Grant from the U.S. Department of Agriculture (USDA) Forest Service, Region 3 - Southwestern Region, under the Infrastructure and Investment Jobs Act Financial Assistance to Facilities that Purchase and Process Byproducts for Ecosystem Restoration program (CFDA 10.725). The award, issued September 10, 2025, with a completion date of June 30, 2028, will fund upgrades to feedstock drying systems to increase wood pellet manufacturing capacity at the company's facility in Show Low, Arizona.

The grant funds will support personnel and travel costs associated with project implementation, supplies, and contractual expenses for the installation of emissions control equipment that will enable increased drying capacity. These infrastructure improvements align with the program's primary objective of decreasing vegetation removal costs on federal and Tribal lands by creating viable commercial markets for forest restoration byproducts, while supporting sustainable forest management and rural economic development in the southwestern region.

Funds will be used to support personnel and travel costs associated with project implementation, supplies and contractual expenses associated with the installation of emissions control equipment to allow for increased drying capacity.