Caledonia County, Vermont
The Caledonia County, Vermont BDO Zone for Woody Biomass is rated ‘A’.
Rating Issue Date: June 21, 2024.
'A' ratings denote high prospective viability of Feedstock Supply and Infrastructure and low expectations of default risk in the Zone. Capacity to support new biobased plant operations is considered strong.
Caledonia County, VT, BDO Zone Overview
Feedstock quantities are expressed in bone dry tons per year (bdt/yr), while feedstock costs are expressed in United States dollars (USD). Maximum transport distance is based on a 75-mile driving distance from the center point (Lyndonville, VT).
BDO Zone Assets
- Closure of biomass power plants and pulp mills freed large amounts of biomass and supply chain capacity that can be available for a new project.
- Forestry remains a long-established and robust industry in the BDO Zone, despite the closure of regional pulp mills.
- Forestry supply chains well-established and efficient for commercial quantities of pulpwood, sawmill residues, and forest residues.
BDO Zone Liabilities
- Act 250 likely to add uncertainty, cost, and lengthy review process for new bio-based projects.
- Strained forest residue supply chain due to market prices at or below production costs.
- Severe and increasingly frequent floods have had a negative economic effect on logging contractors.
- Logging company ownership and management is aging and may face difficulties with the transfer of ownership upon retirement.
Infrastructure
- The project site is situated in the St. Johnsbury/Lyndon Industrial Park, a 7.7-acre greenfield lot, 2.5 miles south of Lyndonville, near the intersection of Interstate 91 and US Route 5. Access to Interstate 91 is crucial for the western part of Vermont, while US Route 2 runs east-west routes across Vermont.
- The project site has on-site utilities, including 3-phase power, potable water, fire hydrants, sewer, stormwater system, and a paved roadway. The industrial park benefits from an established Act 250 master permit, enabling tenants to seek amendments within the existing framework. This presents the potential for expedited permitting processes, reducing associated timelines.
- The industrial park lots are zoned commercial/industrial, with other zoning classes within proximity, including commercial, residential, and industrial. Other lots are available within the industrial park or in the vicinity, allowing for expansion.
- Site Detail:
- Lot 3 is a 7.7-acre site centrally located in St. Johnsbury-Lyndon Industrial Park.
- Accessible via Interstate 91 and US Route 5, with US Route 2 just over 5 miles away.
- The site falls within St. Johnsbury, near the Lyndon/St. Johnsbury boundary.
- Infrastructure includes 3-phase power, water, sewer, stormwater, and paved roads.
- Lyndonville Electric's onsite substation provides 34.5kV power, regulated by 167kV GE regulators; no SCADA communication.
- The park has an Act 250 master permit, allowing quicker permit amendments.
Local Grants and Incentives
Opportunity Zones (Lyndon, St. Johnsbury and Newport)The Northeast Kingdom communities of Lyndon, St. Johnsbury, and Newport all contain at least one Opportunity Zone. Investors who roll capital gains into a Qualified Opportunity Fund investing in these federally designated tracts can defer and reduce tax on those gains, and pay no tax on the appreciation of the Opportunity Zone investment when it is held long enough.
Use Value Appraisal (Current Use) for ForestlandVermont's Use Value Appraisal tax program for forestland covers over 16,000 parcels and 2 million acres. It lets eligible private landowners who practice long-term forestry have their land appraised on the value of wood production rather than its development value, keeping working forest in production and underpinning the BDO Zone's long-term fibre supply.
Vermont Climate Action PlanVermont's Climate Action Plan supports forest management and biomass operations with strict procurement standards. Adopted under the 2020 Global Warming Solutions Act, it sets legally binding emission reduction requirements and directs state policy toward low-carbon alternatives to fossil fuels.
Forest Certification ProgramsCertifications from FSC, Vermont Family Forests, SFI, and the Vermont Tree Farm Program are available to landowners and suppliers in the BDO Zone, giving a new project documented access to third-party certified fibre.
