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University of Tennessee-led Partnership Wins Up to $160 Million Grant to Boost Rural Economy, Bio-Based Manufacturing

A University of Tennessee-led partnership has been awarded up to $160 million over the next decade from the National Science Foundation to launch a regional innovation initiative aimed at expanding biobased manufacturing, creating thousands of jobs and increasing farm income across Tennessee and Alabama.

The BRIDGES Engine was selected as one of only 12 winners nationwide in the NSF’s Regional Innovation Engines competition, which drew more than 300 preliminary proposals and over 70 full submissions. The program is designed to support collaborative research and economic development in regions that have not benefited as much from recent technology-driven growth.

The initiative will focus on converting underused farmland into production sites for specially developed perennial grasses that can be transformed into renewable materials for the automotive, construction and packaging industries.

The project is jointly led by the University of Tennessee, the HudsonAlpha Institute for Biotechnology, Auburn University, AGgrow Tech LLC and Volkswagen Group of America.

According to project leaders, BRIDGES is expected to generate tens of millions of dollars in additional annual income for farmers in Tennessee and Alabama, attract more than $2 billion in private investment and create thousands of manufacturing and supply chain jobs. More than 10,000 people are also expected to participate in workforce training programs related to agriculture, manufacturing and technical fields.

The initiative builds on the University of Tennessee’s existing work in biobased manufacturing and renewable materials, including a $20 million investment made in partnership with Oak Ridge National Laboratory in 2024 to advance circular bioeconomy research.

University of Tennessee Chancellor Donde Plowman said the award recognizes the potential of the partnership to strengthen industries and communities throughout Tennessee and the Southeast.

“We are grateful to NSF for recognizing this ambitious project and the impact it will have on the industries and communities of Tennessee and the Southeast,” Plowman said. “Working alongside our partners on this bold collaborative initiative is an example of the value a great land-grant public research university can bring to the state.”

BRIDGES Engine CEO Sam Jackson said the federal investment validates the team’s strategy for creating long-term economic growth in rural communities across Tennessee and Alabama.

The project also received support from the Tennessee Department of Economic and Community Development, which awarded $10 million through the state’s Federal Innovation Grant Matching Fund.

Deputy Governor and TNECD Commissioner Stuart C. McWhorter said the initiative demonstrates how partnerships among universities, government and private industry can translate research into new economic opportunities, while expanding markets for farmers and supporting high-quality jobs in rural areas.

University officials said BRIDGES will support the entire lifecycle of biobased products, from research and commercialization to workforce development and regional engagement.

The collaboration includes a network of 85 organizations, including 18 academic institutions, 15 stakeholder organizations, 10 commercialization partners and 42 industry partners ranging from startups to established corporations.

Volkswagen Group of America, a co-lead partner in the project, said the initiative will help accelerate development of renewable materials while strengthening rural economies throughout the Southeast.

Nicole Labbé, director of the Center for Renewable Carbon at the University of Tennessee Institute of Agriculture and a co-principal investigator on the project, said the goal is to develop multiple commercial uses for biomass rather than relying on a single product.

“We are developing the circular bioeconomy to meet the needs of current and future generations,” Labbé said. “With the NSF award, the BRIDGES Engine is bringing together all the puzzle pieces to accomplish that, allowing us all to better serve Tennessee communities.”

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