Melville, Saskatchewan
The Melville, Saskatchewan BDO Zone for Wheat Straw is rated ‘A’.
Rating Issue Date: November 26, 2020.
'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.
Melville, SK holds an investment-grade BDO Zone ‘A’ Rating for Wheat straw. Issued in Nov 2020, the rating certifies approximately 600,000 gt/yr of reliable, low-risk biomass feedstock available within a within 150 km of Melville, SK.
A ‘A’ rating is an investment grade rating, signalling a reliable, low-risk feedstock supply. It signals to developers, lenders, and investors that Melville, 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
- Large Biomass Availability Multiple (BAM) at 38% grower participation rate within 150 km
- Supply basin expandable at marginally increased transportation cost
- No large-scale competition for wheat straw
- Positively rated infrastructure asset profile
- Lack of suitable harvesting equipment; probable need for third-party square balers
- Relatively small average farm size requiring engagement of numerous growers
- Lack of initial interest from large growers
Contacts
