Woody encroachment of grasslands has led to wildfires that have recently destroyed homes and adversely affected rural communities. Eastern red cedar (ERC) is a major culprit in woody expansion and causes habitat fragmentation for upland bird and other wildlife species, with adverse effects on infiltration of precipitation, induced changes to plant species composition that degrade habitat and reduce domestic livestock utilization. Currently, the common practice is to cut and burn ERC using government cost-share programs and/or at a land owner's expense, while not generating a beneficial, valued-added product. We propose development and commercialization of a coupled ERC oil extraction/distillation-biochar system to create the following, value-added ERC products: 1. ERC oil extraction/ distillation products; and 2. Biochar. Exploration of methods, coupled systems and processes would be piloted and demonstrated. The energy needs to extract/distill ERC oil reduce its economic return. We propose development of a coupled system for ERC oil extraction/ distillation and biochar production using the heat from biochar to fuel the oil extraction/ distillation process. We would market the fuel used to extract ERC oil as a biochar soil amendment and recapture some of the heat for complimentary heating efforts, while producing a value-added product of ERC oil. We will evaluate the quality of the ERC end products utilizing our coupled system, while refining the system to achieve the simplest, most efficient and economical design to support on-farm/ ranch applications and local/ regional rural development opportunities. The target audience for this innovative solution would be rural businesses and land owners interested in business development and diversified on-farm/ ranch income. Commercialization and marketing of ERC utilization systems and value-added products would occur during Phase 2 after research and development in Phase 1. However, preliminary evaluation of commercialization and marketing of the coupleds systems and ERC biochar/ oil end products will occur during Phase 1 in partnership with regional biochar initiatives and wood product utilization programs. Production of value-added ERC products could supplement rural incomes or be sole industries, while providing environmental benefits.