Funding

July 7, 2025

Woodchuck raises $3.7m for waste-to-energy technology

Start Midwest

Image: Quality Stock Arts/shutterstock.com
Image: Quality Stock Arts/shutterstock.com

Grand Rapids, Michigan, based startup Woodchuck, which helps convert construction wood waste into renewable energy through the use of artificial intelligence, announced last year that they will develop an AI innovation environment & biomass processing facility in their home city. 

This development will surely be aided by their recent $3.75 million in seed funding led by an investor syndicate headed by Mason Fink, with participation from NorthStar Clean Energy, Alloy Partners (formerly High Alpha Innovation) and Beckett Industries. The injection of capital should help Woodchuck expand operations and deepen its impact across construction, manufacturing, and energy sectors, industries which are often seeking sustainable solutions.

Woodchuck’s AI-driven platform employs advanced deep learning image recognition to identify, sort, and process timber and wood waste, which would otherwise predominantly be sent to landfills. The U.S. construction industry alone generates approximately 41 million tons of wood waste annually, the majority of which currently ends up discarded. By diverting this material, Woodchuck hopes to produce a cleaner, more consistent biomass fuel feedstock that bioenergy producers can use reliably. This may not only deliver a sustainable energy source, but also help clients reduce waste-hauling costs by up to 30%, the company said.

Woodchuck believes that the detailed, customized reporting on carbon savings and energy output delivered by its technology allows businesses to track their environmental impact and progress toward sustainability goals. In its initial six months of operation last year, Woodchuck had already diverted over 100 tons of CO2 emissions from contributing to climate change, generating 500 million BTUs of green energy, while increasing revenue by an average of 45% monthly.

The company’s official launch event at its Grand Rapids headquarters drew local and state leaders, including Michigan Governor Gretchen Whitmer, who praised Woodchuck as a shining example of how environmental responsibility and innovation can drive economic growth.

As the firm prepares to scale its operations, it aims to continue providing dual-purpose solutions that positively impact the environment, energy producers, and businesses seeking to reduce their ecological footprint.

Woodchuck is an example of an increasing trend of artificial intelligence and sustainability convergence, turning industrial and construction waste streams into valuable inputs for clean energy production. Woodchuck’s technology not only tackles a significant waste management challenge but also supports the broader transition toward greener energy systems, illustrating a promising pathway for the circular economy in the bioenergy sector within the Midwest.