The specific NAICS (North American Industry Classification System) code for biomass electric power generation is 221117.
Understanding NAICS Codes for Energy Industries
NAICS codes are a standardized system used by government agencies in the United States, Canada, and Mexico to classify business establishments. These codes are essential for collecting, analyzing, and publishing statistical data related to the economy. When discussing "biomass energy" in the context of an NAICS code, the most precise classification refers to the generation of electricity from biomass resources.
The Specific NAICS Code for Biomass Electric Power Generation
The code 221117 falls under the broader 2-digit Utilities sector (NAICS code 22). This hierarchical structure means that as you add more digits to a NAICS code, the classification becomes increasingly detailed and specific. For biomass, this detailed code pinpoints establishments primarily engaged in generating electric power using biomass as the fuel source.
Here's a breakdown of the classification:
| NAICS Code | Description | Broader Sector |
|---|---|---|
| 221117 | Biomass Electric Power Generation | Utilities (22) |
This classification highlights that the primary business activity being categorized is the transformation of biomass into electricity for distribution.
Why This Classification Matters
Accurate NAICS classification is crucial for several reasons, including:
- Economic Analysis: It allows for precise tracking of economic activity, growth, and trends within the biomass energy sector.
- Policy Making: Governments use these classifications to develop targeted policies, incentives, and regulations for specific industries.
- Market Research: Businesses and investors can better understand market size, competition, and opportunities within the biomass electric power generation industry.
- Funding and Grants: Eligibility for specific grants, loans, or tax credits often depends on a business's NAICS code, particularly for renewable energy initiatives.
To learn more about the complete NAICS hierarchy and its various classifications, you can explore resources like the U.S. Census Bureau's NAICS information.
