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 holds an investment-grade BDO Zone ‘A’ Rating for Forest residuals, Sawmill residuals, Pulpwood. Issued in Jun 2024, the rating certifies approximately 1,452,000 gt/yr of reliable, low-risk biomass feedstock available within a 75-mile driving distance from the centre point (Lyndonville, VT).
A ‘A’ rating is an investment grade rating, signalling a reliable, low-risk feedstock supply. It signals to developers, lenders, and investors that Caledonia County, VT’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
- 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.
- 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 & sites
- 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 & incentives
- The Northeast Kingdom communities of Lyndon, St. Johnsbury, and Newport all contain at least one Opportunity Zone.
- Certifications from FSC, Vermont Family Forests, SFI, and Vermont Tree Farm Program available.
- Vermont's Use Value Appraisal tax program for forestland covers over 16,000 parcels and 2 million acres.
- Vermont's Climate Action Plan supports forest management and biomass operations with strict procurement standards.
Contacts
