Bon Wier, Texas
The Bon Wier, Texas BDO Zone for Woody Biomass is rated ‘AA’.
Rating Issue Date: October 19, 2022.
'AA' ratings denote very high prospective viability of Feedstock Supply and Infrastructure and very low expectations of default risk in the Zone. They indicate very strong ongoing capacity of the region to support new biobased plant operations. This capacity is not significantly vulnerable to foreseeable events.
Bon Wier, TX holds an investment-grade BDO Zone ‘AA’ Rating for Forest residuals, Sawmill residuals, Pulpwood. Issued in Oct 2022, the rating certifies approximately 2,000,000 gt/yr of reliable, low-risk biomass feedstock available within a 75-mile radius of Bon Wier.
A ‘AA’ rating is a high investment grade, signalling an abundant, low-risk feedstock supply. It signals to developers, lenders, and investors that Bon Wier, TX’s feedstock supply has undergone rigorous, standardized due diligence across 100+ risk indicators, the same framework applied to every BDO Zone across North America.
Every BDO Zone Rating assesses a region across three dimensions, mapped as expanding radii around a candidate site.
- Feedstock surplus: Data indicating at least 50,000 tonnes per year of excess feedstock available to support typical intake of new biofuels manufacturing plants.
- Supply chain strength: Evidence supporting long-term commitment to supply both quantity and quality by local farmers, forestry companies, food waste generators, haulers and municipalities.
- Sound infrastructure: Suitable transportation, logistic, operating and supporting infrastructure to meet the requirements for new facility operations.
Assets & liabilities
- 13.6 Mgt/yr of woody biomass assessed within the BDO Zone
- Strong growth: 5.3% of standing inventory harvested annually
- Relatively low demand: Within the BDO Zone, total demand for pine pulpwood is ~ 5 Mgt/yr
- Forestry labor market is healthy. No anticipated labor or skill shortages
- Significant variation in mill residue. Mill-produced biomass ranged from 170,000 to 500,000 gt/yr between 2007 and 2021
- Multiple suppliers subject to the same external risk factors: slow lumber markets can negatively impact sawmill residual and forest residue generation
Infrastructure & sites
- approximately 1,604 acres
- Large existing buildings that could be used for wood storage and water storage tanks. Site is laid out to allow for consistent ingress and egress of trucks
- Existing property and facility have excellent infrastructure including roads, rail, power, natural gas and water
- Bon Wier is adjacent to Highway 363 between Kirbyville and Bon Wier, Texas
- Four water wells on site with a small well dedicated to the existing building
- Entergy Texas Inc (ETI) will provide approximately 5 MW and backup power for 35 MW
- Natural gas provided by EnerFin Resources. The transmission line is 4" and is 0.25 miles from the existing manufacturing site
- Internet connection by Windstream
- Deep East Texas Council of Governments (DETCOG) has a proposed fiber line 6,000 feet from the site
- approximately 4,500 feet of rail serviced by WATCO and leased from BNSF
- located within a federal Opportunity Zone
- Network of roads gives ready access to Highway 191 and Highway 87
- Lone Star Rail Storage Facility with 350 car storage capacity on-site and over 1300 off-site
Local grants & incentives
- An incentive package has been provided by state and local jurisdictions
Contacts
