Estevan, Saskatchewan
The Estevan, Saskatchewan BDO Zone for Wheat Straw is rated ‘A’.
Rating Issue Date: March 3, 2023.
'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.
Estevan, SK holds an investment-grade BDO Zone ‘A’ Rating for Wheat straw. Issued in Mar 2023, the rating certifies approximately 3,480,000 gt/yr of reliable, low-risk biomass feedstock available within the region.
A ‘A’ rating is an investment grade rating, signalling a reliable, low-risk feedstock supply. It signals to developers, lenders, and investors that Estevan, SK’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
- Stable long-term outlook on feedstock price and quantity with strong inventory management in place
- Ability to access larger supply basin at marginal increase in transport costs
- BDO Zone estimates include feedstock in both Canada and the US sides of the supply basin
- Relatively large average farm size requires the engagement of fewer growers
- No large-scale competition for wheat straw
- Positively rated infrastructure asset profile
- Grower interest in supplying wheat straw will require further direct validation
- High probability of need to engage a third-party company to carry out harvest with square balers
- Wheat straw in this area may be more suspectable to natural event risks and climate change impacts
Contacts
