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Pallet C e nt ral • May -Ju ne 2 0 25 17 T hrough the Pallet Foundation, the National Wooden Pallet and Container Association (NWPCA) has taken a significant first step toward addressing the challenges faced by pallet manufacturers in managing wood residuals. e Pallet Foundation submitted an application for a Wood Innovation Grant from the US Department of Agriculture aimed at exploring available markets, conducting feasibility studies, and providing a roadmap to existing and emerging residual markets. With this project, the Foundation seeks to assist the industry in addressing the growing challenge of finding economically viable outlets for wood waste. EXPANDING MARKETS FOR WOOD RESIDUALS IS CRUCIAL AS TRADITIONAL OUTLETS ARE OFTEN EITHER NONEXISTENT OR FINANCIALLY UNFEASIBLE, DEPENDING ON THE REGION. Many companies are challenged to dispose of or repurpose their residuals without incurring excessive costs. is is particularly true as the world 's environmental expectations grow and waste disposal regulations become stricter. During a recent panel discussion on the topic at NWPCA's Annual Leadership Conference, several industry leaders weighed in on how innovation, collaboration, and policy change could create new opportunities for utilizing wood waste—such as biochar and other residuals—in sectors including agriculture, energy, and environmental sustainability. Panelists And Key Discussion Points e panel was composed of professionals with insights into both the pallet industry and markets for residuals. e panelists included Jess Bonsall, Director of Environmental, Social and Governance (ESG) at 48forty Solutions; Tom Miles, President of T.R. Miles Technical Consultants, founding member and director of the US Biochar Initiative from 2010 to 2024, and former director and chair of the International Biochar Initiative 2015– 2024; Heather Ross, President of Atlas Pallet Corporation; and Maxwell Ross, Director of Business Development at Atlas Pallet Corporation. e discussion was moderated by Don Shandy, Director of Crowe & Dunleav y, who guided the conversation with a focus on the future of biochar and residual markets. The Need For Expanding Markets For Biochar And Wood Residuals Two panelists, Tom Miles and Jess Bonsell, addressed this topic. To discuss the issue at hand, we need to understand what the current market landscape looks like. Biochar, a form of charcoal produced from organic materials, is great for its versatility and potential applications. Biochar can be produced from wood residuals through pyrolysis, a process that involves heating organic materials in the absence of oxygen. is process transforms wood into a stable form of carbon that can be used in various applications. Biochar has already been valuable in several markets. In agriculture, for example, it enhances soil fertility and improves crop yields by increasing the soil 's water retention capacity and promoting beneficial microbial activity. It is also utilized in the environmental sector for carbon sequestration because biochar can store carbon for hundreds or even thousands of years, helping to mitigate climate change. Biochar has applications in energy production, where it is used as a fuel source in boilers and power plants. What Is Biochar? Maxwell Ross, Director of Business Development at Atlas Pallet Corporation, explained biochar, its properties, and its significance in the residuals market. Biochar, he explained, is a stable, carbon-rich product that results from the thermal decomposition of biomass, specifically wood. It is highly porous, making it ideal for soil enhancement, water filtration, and carbon storage applications. Manufacturing biochar through pyrolysis is a sustainable way to handle wood residuals as it reduces the environmental impact of traditional waste disposal methods like incineration or landfill. e process also has the potential to create new revenue streams for pallet manufacturers and recyclers who can sell biochar to agricultural, environmental, and energy sectors. Its ability to improve soil health, reduce greenhouse gas emissions, and provide energy makes it a promising solution for turning wood waste into valuable products. Importance Of Policy And Education Heather Ross shared her self-discovery of biochar years ago, seeing it as a solution for managing wood residuals in everyday uses. She recounted how, over time, she realized the broader potential of what biochar can do for the industry. For this to be a success, "this conversation has to happen amongst all of us within this industry to move forward and to have an impact," she said. While this challenge is a national one, many of the solutions face regional and local hurdles. Heather emphasized the importance of collaborative policy efforts at the local, state, and federal levels to remove barriers to innovation in the residual market. Education and updated policy will be driving factors in securing viable solutions to this problem. As the wood products industry

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