A Holistic Rural Energy Vision for The Rural Energy Stack:
Layering Biomass, Geothermal, and SMRs with Wind and Solar for Resilience
How Integrated Clean Energy Systems Can Revitalize Rural Economies
Today’s bonus post follows up on this week’s fourth installment in JCShepard.com’s October series on rural energy, exploring how the clean energy transition is reshaping life across America’s heartland.
The Vision: Why Integration Matters
Rural America’s energy future isn’t about choosing one technology—it’s about stacking them to create systems that are:
✅ Resilient (weather-proof, grid-independent).
✅ Economically Robust (diverse revenue streams).
✅ Locally Controlled (jobs and profits stay in the community).
✅ Climate-Smart (zero waste, carbon-negative potential).
The Power of Integration:
Integrated stacked systems leverage resources and expertise which can result in logarithmic returns to individuals and the community.
- Biomass turns waste into heat, power, and biofuels.
- Geothermal provides steady baseload heat and electricity.
- SMRs add 24/7 high-capacity power for industry and hydrogen.
- Solar/Wind fill gaps and reduce fuel costs.
- Combined with battery energy solar systems, all of the above can provide a more firm energy supply to rural America.
The Benefits of Distributed Energy Generation
Distributed local renewable energy generation offers numerous and significant advantages for small towns and rural communities, creating a pathway toward energy independence, economic revitalization, and enhanced resilience. Some benefits include:
- Job Creation and Local Employment
- Enhanced Tax Revenue
- Landowner Income Streams
- Reduced Energy Costs
- Enhanced Grid Resilience
- Local Control and Ownership
Result: A self-sustaining energy ecosystem can power farms, factories, and homes—without sacrificing rural character.
Three Real-World Models for Rural Energy Integration
Model 1: The Forestry Region (Pacific Northwest / Appalachia)
Scenario: A timber-dependent county with sawmills, forest waste, and cold winters.
Layered Energy Stack
| Technology | Application | Economic Benefit |
|---|---|---|
| Biomass (Wood Waste) | CHP plant (heat + electricity) for sawmills and greenhouses. | $5M/year from selling pellets + power. |
| Geothermal (Direct-Use) | District heating for downtown + greenhouse CO₂ enrichment. | 30% higher crop yields (tomatoes, cannabis). |
| SMR (Microreactor) | Baseload power for lumber kilns and hydrogen production (fuel for logging trucks). | 100+ jobs at $80K/year. |
| Solar Canopies | Over parking lots and pastures (dual-use land). | $1M/year lease payments to farmers. |
Case Study: Klamath Falls, Oregon (2025)
- Biomass: Collins Companies uses sawmill waste to power a 2 MW CHP plant, heating 10 greenhouses.
- Geothermal: Oregon Institute of Technology expanded its geothermal district heating to 500 homes, cutting heating bills by 60%.
- SMR Pilot: NuScale partnered with PacifiCorp to deploy a 50 MW SMR at the retired Klamath Cogeneration Plant, replacing coal jobs.
- Outcome:
- $20M/year in local energy revenue.
- 200 new jobs (biomass ops, geothermal maintenance, SMR techs).
- Carbon-negative (biomass + geothermal offset SMR emissions).
Lesson: Layering technologies turns “waste” into wealth—sawdust becomes power, geothermal boosts farm profits, and SMRs stabilize the grid.
- Plan carefully so the Renewable Energy economy and the burgeoning Outdoor Economy play nice together.
Model 2: The Decommissioned Coal Town (Wyoming / West Virginia)
Scenario: A coal plant closure leaves 500 workers unemployed and a grid connection stranded.
Layered Energy Stack
| Technology | Application | Economic Benefit |
|---|---|---|
| SMR (Coal-to-Nuclear) | TerraPower Natrium reactor (345 MW) on the retired coal plant site. | $500M investment, 400 jobs. |
| Biomass (Coal Waste) | Pyrolysis plant converts coal ash + forest waste into biochar (soil amendment) and syngas. | $10M/year from biochar sales. |
| Geothermal (EGS) | Repurposed coal mine shafts for direct-use heating (schools, hospitals). | $3M/year savings on heating bills. |
| Wind + Solar | Sheep-grazing solar farms on reclaimed mine land. | $2M/year lease payments to landowners. |
Case Study: Kemmerer, Wyoming (TerraPower’s Natrium Plant)
- SMR: TerraPower’s Natrium reactor (2028 launch) will use liquid sodium coolant for flexible power + grid storage.
- Biomass: Pacificorp partnered with local ranchers to convert juniper wood waste into biochar, improving soil and sequestering carbon.
- Geothermal: University of Wyoming drilled EGS wells in abandoned coal seams, providing heat for Kemmerer’s downtown.
- Outcome:
- $1B total investment (largest in Wyoming since coal boom).
- 600 jobs (SMR ops, biomass processing, geothermal maintenance).
- $50M/year in local tax revenue.
- Model for “just transition”—coal workers retrained as nuclear operators.
Lesson: Repurposing coal infrastructure (grid, water, workforce) cuts costs by 30% and speeds up deployment.
- Plan carefully so the Renewable Energy economy and the burgeoning Outdoor Economy play nice together.
Model 3: The Farming County (California’s Central Valley)
Scenario: A crop-rich county with manure waste, seasonal labor, and high energy costs.
Layered Energy Stack
| Technology | Application | Economic Benefit |
|---|---|---|
| Biomass (Manure + Crop Waste) | Anaerobic digesters → biogas for electricity + biofertilizer. | $15M/year from RNG sales. |
| Geothermal (Ag Focus) | Low-temp geothermal for greenhouse heating, dairy pasteurization, and aquaculture. | 30% higher winter yields (strawberries, lettuce). |
| SMR (Industrial Heat) | X-energy Xe-100 provides steam for food processing (e.g., tomato canneries). | $20M/year savings vs. natural gas. |
| Solar Grazing | Sheep graze under solar panels on fallow land. | $500K/year extra income for farmers. |
Case Study: Fresno County, California (2025)
- Biomass: Calgren Dairy expanded its digester network to 30 dairies, producing enough RNG to power 10,000 homes and cut methane emissions by 90%.
- Geothermal: Fresno State University drilled a 1.5 MW geothermal well to heat campus greenhouses, reducing gas bills by $1M/year.
- SMR: X-energy partnered with Sun-Maid Raisins to deploy a 80 MW Xe-100 reactor, providing steam for drying and hydrogen for fertilizer.
- Outcome:
- $50M/year in new ag energy revenue.
- 500 jobs (digester ops, geothermal techs, SMR maintenance).
- Carbon-negative farming (biomass + geothermal offset SMR emissions).
Lesson: Farms become energy hubs—waste is fuel, geothermal boosts yields, and SMRs can cut costs.
The Economics: How the Stack Pays Off
Revenue Streams from Integrated Systems
| Technology | Revenue Source | Potential Annual Revenue (Per County) |
|---|---|---|
| Biomass | RNG sales, biofertilizer, pellets | $10M–$30M |
| Geothermal | District heating, ag contracts | $5M–$15M |
| SMR | Electricity, hydrogen, steam | $50M–$100M |
| Solar/Wind | Lease payments, PPAs | $2M–$10M |
| Carbon Credits | LCFS, RINs, 45Q tax credits | $3M–$8M |
Total Potential: $70M–$160M/year for a rural county of 50,000 people.
Job Creation
| Sector | Jobs Created (Per County) | Avg. Salary |
|---|---|---|
| SMR Operations | 200–400 | $80K–$120K |
| Biomass Processing | 100–300 | $50K–$70K |
| Geothermal O&M | 50–100 | $60K–$90K |
| Solar/Wind O&M | 20–50 | $45K–$65K |
| Ag Energy Tech | 50–100 | $50K–$80K |
Total: 400–1,000 high-quality jobs in a single rural county.
Policy & Financing Tools to Make It Happen
Federal Programs in the US
| Program | Funding Available | Best For |
|---|---|---|
| USDA REAP Grants | Up to $1M/grant | Biomass, geothermal, solar |
| DOE SMR Demo Program | $2.5B (2025–2030) | SMR deployment |
| EPA Clean Energy Grants | $500M (IRA program now mostly on hold) | Hybrid renewable systems |
| NRC Licensing Support | Fast-track reviews | Advanced reactors |
| 45Q Tax Credit | $85/ton CO₂ stored | Biomass + geothermal carbon capture |
State & Local Tools
- RPS Carve-Outs: Mandate 10–20% local energy (e.g., Minnesota’s biomass standard).
- Property Tax Breaks: 10-year abatement for clean energy projects (e.g., Texas’ Chapter 313).
- Revolving Loan Funds: Low-interest loans for ag energy (e.g., Iowa’s Ag Energy Alliance).
Private Financing
- Green Banks: $1B+ available for rural energy (e.g., NY Green Bank).
- Corporate PPAs: Microsoft, Amazon, Walmart signing long-term clean energy contracts.
- Cooperatives: Rural electric co-ops (e.g., Great River Energy) investing in hybrid systems.
Canadian 2025 Financing Programs
| Program | Funding Available | Best For |
|---|---|---|
| Clean Technology Investment Tax Credit (TC) | Up to 30% refundable tax credit | Capital investment in wind, solar, geothermal, etc. |
| Canada Growth Fund (CGF) | C$15 billion fund | Large-scale clean tech including SMRs |
| Smart Renewables and Electrification Pathways Program (SREPs) | Project grants and cost-sharing | Wind, solar, bioenergy, energy storage in rural or Indigenous communities |
| Electricity Predevelopment Program | Project grants for feasibility and design | Early-stage grid modernization or renewable integration |
| Clean Energy for Rural and Remote Communities (CERRC) | C$233 million program | Renewable microgrids and bioenergy |
| Canada Greener Homes Loan and Grant | Up to C$40,000 grants | Residential retrofits and rooftop solar |
| Clean Fuels Fund | C$1.5 billion | Bioenergy, hydrogen, and low-carbon fuel production projects |
Step-by-Step: How to Build a Rural Energy Stack
Phase 1: Assess Resources & Partners (0–12 Months)
- Map Local Assets:
- Use DOE’s Energy Atlas to identify biomass, geothermal, and grid capacity.
- Example: DOE’s Geothermal Prospector + USDA’s Biomass Atlas.
- Engage Stakeholders:
- Farmers, foresters, tribal leaders, local gov.
- Example: Ho-Chunk Nation (WI) partnered with DOE on biomass + solar.
- Identify Funding:
- Apply for USDA REAP, DOE SMR Demo, or EPA grants.
Phase 2: Pilot a Hybrid Project (1–3 Years)
- Start Small:
- Biomass: Convert sawmill waste → pellets for school heating.
- Geothermal: Drill a 1–2 MW well for greenhouse heat.
- Solar: Install agrivoltaics on 10 acres.
- Measure Impact:
- Track energy savings, job creation, and revenue.
- Example: Klamath Falls’ pilot saved $2M/year in energy costs.
- Scale Up:
- Add SMR or EGS once pilot proves viability.
Phase 3: Full Deployment (3–10 Years)
- Deploy SMR:
- Site at retired coal plant (e.g., Kemmerer, WY).
- Use DOE’s $2.5B SMR Demo Program.
- Integrate Systems:
- Biomass → SMR heat input (reduces fuel costs).
- Geothermal → district heating (cuts gas bills).
- Export Energy:
- Sell RNG, hydrogen, or excess power to nearby cities.
Overcoming Barriers
| Barrier | Solution |
|---|---|
| Upfront Costs | Stack grants + private capital (e.g., USDA REAP + Green Bank loans). |
| Regulatory Hurdles | Hire a permitting consultant (e.g., NRC’s pre-application process). |
| Public Opposition | Profit-sharing + job guarantees (e.g., Kairos’ 20% revenue pledge). |
| Workforce Gaps | Partner with community colleges (e.g., Wyoming’s nuclear training program). |
Example: Danish “Bioenergy Villages” are communities that renewable resources to generate their own heat and power, often through a combination of biogas plants and large-scale solar heating systems. The model emphasizes community involvement, local resource use, and a district heating network that can adapt to different sustainable energy sources like wood chips or solar thermal, ensuring a reliable and locally-controlled energy supply. High levels of community acceptance and direct participation are crucial for the success of these projects, with residents involved in planning and management of these systems.
Small towns and rural areas in the US can leapfrog further with SMRs when they become viable resources.
The Future: Resilient Rural Economies
With integrated implementation of an energy-stack model, over the next 10 years an integrated rural energy systems could:
- Cut energy costs by 50% for farms and rural factories.
- Create jobs in clean energy and ag tech.
- Sequester tons of CO₂ each year (via biomass + geothermal).
- Make rural America energy-independent with distributed generation.
Call to Action for Rural Leaders
- Start with a feasibility study (use DOE/NREL tools).
- Build a coalition (farmers, tribes, local gov, utilities).
- Apply for grants (USDA, DOE, EPA).
- Assess your Zoning regulations (amend if necessary).
- Pilot a hybrid project (biomass + geothermal or solar).
- Scale with SMRs once the foundation is proven.
A Note on Rural Public Opinion
There is a great deal of skepticism, especially in Rural America, about renewable energy and the idea of climate change. While the public broadly favors developing more renewable energy, with solar (84% positive) and wind (75% positive) leading, these numbers have dipped. In recent surveys conducted across the Midwest, we’ve found strident opposition among people who have to live next to proposed wind and solar projects.
Many “thought leaders” dismiss the skeptics, yet the skeptics are currently in the political ascendency. Rural pushback seems to spring from a couple sources:
- Wind turbines and solar farms are ugly, industrial structures. They turn prime farmland, it is argued, into industrial wastelands while people go hungry. Some people don’t think so, but more do.
- Many recent projects look more like energy colonialism than supporting local communities. While individual property owners gain lease revenue, and local taxing jurisdiction realize tax revenue, large renewable energy projects are more likely to benefit some far distant urban market, far remote down the grid.
- The Biden Administration was a vocal proponent of renewable energy. Rural America voted for Trump. Hence, therefore, voters also are opposed to anything aligned with the Democrat party vs. MAGA. I’m not defending it, it just is what it is.
These are arguments which advocates of renewable energy are not doing a good job addressing at the moment. Across rural America we are seeing counties, townships, and municipalities putting extreme restrictions on renewable energy projects in an attempt to mitigate negative externalities. Some are going so far as to effectively ban anything other than coal, gas, or nuclear energy generation.
Arrogantly talking down to rural voters and investors will not help. Renewable energy can give rural people and their communities new options to grow and thrive, if we work to build partnerships together.
/rant
What’s Next?
November brings a new blog theme: Praxis and Implementation. We’re going to be looking at how we put theory to work to build better places. Join us Sunday for the next chapter.
What’s your community’s approach to renewable energy? Share your stories or questions in the comments, or reach out to explore how your region can plan for a sustainable renewable energy future.
Further Reading & Resources for Rural Energy Policy
Reports & Toolkits
- NREL State, Local, and Tribal Energy Tools Portal — Offers models and data visualization tools for local energy planning, suitable for combining geothermal or bioenergy projects with regional rural development initiatives. (NREL)
- WIPO Green Technology Book: Green Rural Energy Solutions — Focuses on integrating biomass, geothermal, and nuclear into sustainable rural systems, emphasizing innovation and inclusive development pathways. (WIPO)
- “Toward a Shared Zero-Carbon Energy Future: A Global Analysis of Rural Energy Cooperatives” (PDF) from the Rocky Mountain Institute — A focused report on energy resilience and decarbonization opportunities for rural areas
- Linking Renewable Energy to Rural Development (PDF) –A policy-oriented examination of how renewable energy investments can stimulate economic growth in rural regions. (OECD)
Books
- Rural Renaissance: Revitalizing America’s Hometowns through Clean Power, by L. Michelle Moore (Island Press)
Even the smallest town and most remote rural area has the potential to generate their own power close to home. Our Featured Book for October 2025. - Agri-Energy: Growing Power, Growing Food by Rebekah Pierce (Island Press)
20 Nov 2025 publication. - Local Energy Governance: Opportunities and Challenges for Renewable and Decentralized Energy in France and Japan by Magali Dreyfus & Aki Suwa (Routledge) This academic work explores institutional and legal frameworks that enable or hinder local governments from advancing renewable energy initiatives. Particularly relevant for comparative policy and governance design in small municipalities.
Looking for more?
- The New Rural Playbook: Planning Trends That Matter
- Planning with Purpose: Emerging Trends in Rural and Small Town Planning
- Thriving Together: Proven Strategies for Sustainable Rural Economies in 2025
- Wired for Change: Rural America and the Energy Economy of Tomorrow
(As an Amazon Associate, we may earn commissions from qualifying purchases. Check your local library or bookshop, too.)
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