AI-powered wood recycling startup in Grand Rapids secures $3.75M in seed funding

GRAND RAPIDS, MI — A Grand Rapids-based startup that turns scrap wood into biomass for renewable energy production has raised $3.75 million in seed funding that it plans to use to strengthen operations and its artificial intelligence platform.

“With this funding, we are accelerating our mission to help manufacturers and construction companies reduce waste, reduce costs, and contribute to the clean energy grid,” said Todd Thomas, founder and CEO of Woodchuck.

Woodchuck hosted a grand opening in May for what it calls the first of its kind processing that uses all-electric wood processing and AI for sustainable biomass production. The facility, at 2151 Butterworth Drive SW, can turn 100 tons of wood scraps collected at construction sites and other locations into 83 million BTUs of clean energy.

“Every year, millions of tons of construction waste—much of it wood—are sent to landfills,” Thomas said. “Our AI technology allows us to extract value from this waste, turning it into clean energy and enabling our clients to achieve their sustainability goals.”

The company employs 14 people in Michigan, four of whom are based in Grand Rapids, Thomas said. The company announced plans last year to open its headquarters in Grand Rapids.

The push to raise $3.75 million in seed funding for Woodchuck was led by Mason Fink, an investor and fundraiser who lives in southern California. Additional partners included Beckett Industries, Alloy Partners and NorthStar Clean Energy, a CMS Energy company. CMS Energy is the parent company of Consumers Energy.

Thomas said Woodchuck’s goal is to help its clients reach zero waste through recycling.

The company uses AI cameras placed at dumpsters at the construction sites of its clients. The AI cameras help Woodchuck identify, sort and process wood waste from those dumpsters, which is then turned into biomass. That biomass is brought to CMS Energy, which converts it into renewable energy.

Thomas said Woodchuck wants to invest in its AI platform to help it improve the quality of its biomass. For example, wood that isn’t sorted well and has other contaminants, such as nails and screws, produces lower-quality biomass than wood that is free of contaminants.

“Initially, all of our AI was on the front end to help us pre-sort materials,” said Thomas, who lives in Scottsdale, Arizona. “Now we’re also working on the back end where we are using AI during processing to continue to improve the quality of the biomass.”

In addition, the company wants to improve its AI tool so clients have easier access information about their recycling efforts through Woodchuck.

“Right now, we’ll set up reports on a cadence every week or every month, and our clients will receive those reports,” Thomas said. “What we want them to be able to do is go into the portal and schedule their reports on whatever cadence they want.”