Lesser Slave Region, Alberta
The Lesser Slave Region, Alberta BDO Zone for Woody Biomass is rated ‘BBB’.
Rating Issue Date: May 30, 2024.
'BBB' ratings indicate good prospective viability of Feedstock Supply and Infrastructure and low current expectations of default risk in the Zone. Capacity to support new biobased plant operations is considered adequate, but adverse weather, supply chain, economic, or infrastructure conditions are more likely to impair this capacity over time.
Lesser Slave Region, AB holds an investment-grade BDO Zone ‘BBB’ Rating for Forest residuals, Pulpwood. Issued in May 2024, the rating certifies approximately 310,000 gt/yr of reliable, low-risk biomass feedstock available within a 150-km driving distance from the centre point (Kinuso, AB).
A ‘BBB’ rating is an investment grade rating, signalling a good, moderate-risk feedstock supply. It signals to developers, lenders, and investors that Lesser Slave Region, AB’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
- 155,000 odt/yr of wood fibre available from existing harvesting and milling operations
- Regional forest industry exhibits strong historical performance
- Lack of competitors within 200 km of Kinuso and 125 km of Mitsue Industrial Park
- Long-term prospects for wood supply from dedicated thinning operations for wildfire prevention
- Forest operations in many areas are restricted to a six-month season, complicating forest residue supply logistics
- Lack of pre-existing forest residue supply chain experience and equipment
- Pulp and pellet facilities in region have demonstrated ability to procure feedstock from over 300 km
- Comparatively high costs of electricity, labour, and land
Infrastructure & sites
- Locates 15 km east of Slave Lake, serving as key regional industry hub
- Potential 10-acre facility site, zoned for heavy industry
- Features large multi-vehicle garage, potable and high-pressure water access, office space, 24/7 residing capabilities
- Former municipal fire department site
- Abundant natural resources and essential infrastructure including reliable water supply, three-phase power, natural gas, dedicated fire station
- Convenient rail and highway connections
- Municipal District of Lesser Slave River plans infrastructure enhancements including asphalt overlays on access roads in 2025
Contacts
