North San Joaquin Valley, California
The North San Joaquin Valley, California BDO Zone for Woody Biomass is rated ‘AA’.
Rating Issue Date: December 14, 2023.
'AA' ratings denote very high prospective viability of Feedstock Supply and Infrastructure and very low expectations of default risk in the Zone. They indicate very strong ongoing capacity of the region to support new biobased plant operations. This capacity is not significantly vulnerable to foreseeable events.
North San Joaquin Valley, CA holds an investment-grade BDO Zone ‘AA’ Rating for Orchard biomass. Issued in Dec 2023, the rating certifies approximately 1,104,000 gt/yr of reliable, low-risk biomass feedstock available within a 75-mile driving distance from the center point (Modesto, CA).
A ‘AA’ rating is a high investment grade, signalling an abundant, low-risk feedstock supply. It signals to developers, lenders, and investors that North San Joaquin Valley, CA’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
- Nearly 900,000 tons of underutilized woody biomass from orchard recycling at low risk
- Long-standing industry with 6,300 Nut Tree growers/suppliers in the BDO Zone
- Well established processors' network to separate nuts from biomass shells and hulls
- The majority of feedstock is available for only the cost of transportation
- Local demand for available residuals continues to go down, opening opportunities for new bioeconomy industries
- Selected site for bio-project development has flexible zoning, access to natural gas, rail and near extensive highway system
- Challenging permitting process for new bio-economy industries in California
- Normal Weather Risks for Agricultural-based feedstock
- Higher prices of energy (natural gas, electricity and diesel) compared to the average national figures
Infrastructure & sites
- Ample Land Options: approximately 2000 acres of land that is specifically zoned and developed for commercial and industrial uses
- Fully Developed Parcels: parcels, some of which can accommodate up to 100 acres, with existing infrastructure, including utilities and road access
- Undeveloped Plots: undeveloped plots on the outer expanses, flexibility to design and construct customized facilities
- Transportation Access: Modesto and Empire Traction Company, an internal short-line railroad, serves the district, connecting tenants to Union Pacific and BNSF lines. Additionally, the proximity to highways, the Modesto City-County Airport, and the nearby Port of Stockton
Local grants & incentives
- BEAM Circular partnership programs: www.beamcircular.org
- Stanislaus County local incentives: www.opportunitystanislaus.com/incentives
- California State programs: www.business.ca.gov/advantages/incentives-grants-and-financing/
Contacts
