NAICS 221117 Quarterly Industry Report
Biomass Electric Power Generation
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 221117Sector: Utilities (22)Updated: Q1 2026
About This Report
This industry profile for Biomass Electric Power Generation (NAICS 221117) draws on data from the Bureau of Labor Statistics[5], U.S. Census Bureau, and SBA size standards database[6]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, renewable energy analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Definition & Overview
Biomass Electric Power Generation (NAICS 221117) encompasses establishments primarily engaged in operating biomass electric power generation facilities that burn wood, waste, or alcohol fuels to produce electric energy per the U.S. Census Bureau[4]. Generated electricity is delivered to bulk power transmission systems or distribution networks. Fuel sources include logging residue, sawmill waste, agricultural crop waste, municipal solid waste (in dedicated biomass boilers), landfill gas, and purpose-grown energy crops.
About 137 establishments generate roughly $177 million in annual payroll and $1.0 billion in total revenue per the Bureau of Labor Statistics[5]. Total U.S. biomass and waste generation capacity stands at roughly 9,000 megawatts, split between waste biomass (2,900 MW) and wood biomass (2,300 MW) in the electric power sector, with additional capacity at industrial cogeneration plants. Reworld (formerly Covanta) operates multiple biomass facilities, and Georgia Power has expanded its biomass portfolio. Many facilities co-locate with sawmills, paper mills, or agricultural processing operations that provide fuel supply.
Per the SBA Table of Size Standards[6], the size standard is 550 employees. Biomass generation produced an estimated 21.7 billion kilowatt-hours in 2024, representing about 2.25 percent of renewable electricity output. Fuel procurement logistics and cost represent the primary operational challenge, as wood waste and agricultural residue must be collected, chipped, dried, and transported to generating stations. Plants typically source fuel within a 50 to 75 mile radius to keep transportation costs manageable. Renewable portfolio standards in many states recognize biomass as eligible renewable generation, supporting power purchase agreements and green energy credit revenue.
What's Included in This Industry
- Wood waste and logging residue combustion
- Agricultural crop waste power generation
- Dedicated biomass boiler operations
- Landfill gas-to-electricity generation
- Alcohol fuel combustion for electricity
- Fuel procurement and handling systems
- Ash management and disposal
- Emissions control and air quality monitoring
- Combined heat and power cogeneration
- Grid interconnection and power sales
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Utilities | 22 |
| Subsector | Utilities | 221 |
| Industry Group | Electric Power Generation, Transmission and Distribution | 2211 |
| NAICS Industry | Electric Power Generation | 22111 |
| National Industry | Biomass Electric Power Generation | 221117 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 221121 | Electric Bulk Power Transmission and Control | Electric Bulk Power Transmission carries biomass plant output to load centers, though many biomass facilities connect at distribution voltage due to smaller generating capacity |
| 221122 | Electric Power Distribution | Electric Power Distribution delivers biomass-generated electricity to retail customers and may directly interconnect with smaller biomass facilities at distribution voltage levels |
| 221116 | Geothermal Electric Power Generation | Geothermal Electric Power Generation shares baseload renewable characteristics with biomass, both producing steady output from thermal energy sources independent of weather conditions |
| 113310 | Logging | Logging operations produce the wood residue, slash, and low-grade timber that biomass power plants purchase as fuel, creating a direct supply chain link between forestry and electricity production |
| 321113 | Sawmills | Sawmills and Wood Preservation generate bark, sawdust, and mill residue that biomass plants burn for electricity, with many biomass facilities co-located adjacent to sawmill operations |
| 221118 | Other Electric Power Generation | Other Electric Power Generation covers alternative generation technologies beyond the primary fuel categories, with some overlap in emerging waste-to-energy and alternative fuel generation methods |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 21.7% | 18 |
| 2 | Michigan | 16.9% | 14 |
| 3 | Virginia | 13.3% | 11 |
| 4 | Maine | 8.4% | 7 |
| 5 | North Carolina | 8.4% | 7 |
| 6 | Ohio | 6.0% | 5 |
| 7 | Oregon | 4.8% | 4 |
| 8 | Texas | 4.8% | 4 |
| 9 | Pennsylvania | 4.8% | 4 |
| 10 | Alabama | 3.6% | 3 |
% Of Establishments
0%
22%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate biomass power plants?
Operators include Reworld (formerly Covanta), utility subsidiaries like Georgia Power, independent power producers, and forestry company cogeneration facilities. About 137 establishments operate nationally per the U.S. Census Bureau[4].
How much electricity does biomass generate?
Biomass produced an estimated 21.7 billion kilowatt-hours in 2024, providing about 2.25 percent of renewable electricity output per the Bureau of Labor Statistics[5]. Total installed capacity stands at roughly 9,000 megawatts across wood and waste biomass categories.
What is the SBA size standard for Biomass Power?
Per the SBA Table of Size Standards[6], NAICS 221117 has a size standard of 550 employees. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to biomass power?
Related codes include NAICS 221121 (Transmission), NAICS 221122 (Distribution), NAICS 221116 (Geothermal), NAICS 113310 (Logging), and NAICS 321113 (Sawmills) per the U.S. Census Bureau[4].
What fuels do biomass power plants burn?
Common fuels include logging residue, sawmill waste, bark and sawdust, agricultural crop residue, landfill gas, purpose-grown energy crops, and construction wood waste. Plants typically source fuel within a 50 to 75 mile radius to control transportation costs.
What activities are included in NAICS 221117?
Core activities include wood waste combustion, agricultural residue generation, biomass boiler operations, landfill gas generation, fuel procurement and handling, ash management, emissions monitoring, cogeneration, and grid interconnection per the U.S. Census Bureau[4].
Can biomass power businesses get SBA loans?
Yes, firms meeting the 550-employee standard qualify for SBA 7(a) loans[7] covering fuel handling systems, boiler equipment, and working capital. Proximity to stable fuel sources like sawmills strengthens SBA loan underwriting.
Is biomass considered renewable energy?
Most state renewable portfolio standards classify biomass as eligible renewable generation per the Bureau of Labor Statistics[5]. This qualification supports power purchase agreements and generates renewable energy credits that provide additional revenue for biomass plant operators.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Table of Size Standards sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504/CDC loans sba.gov
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