Prince of Wales Island, Alaska
The Prince of Wales Island, Alaska BDO Zone for Woody Biomass is rated ‘BB’.
Rating Issue Date: January 6, 2025.
'BB' ratings indicate moderate prospects for Feedstock Supply and Infrastructure (FS&I) with an elevated vulnerability to risk over time, particularly in the event of adverse business or economic conditions.
Prince of Wales Island, AK, BDO Zone Overview
Feedstock quantities are expressed in bone dry tons per year (bdt/yr), while feedstock costs are expressed in USD ($). Maximum transport distance is based on a 75-mile driving distance from the centre point (Thorne Bay, AK).
BDO Zone Assets
- Quantities sufficient to support a quadrupling of the regional biomass heating market.
- Forestry workforce and Equipment scale up requirements likely to be achieved over short time frame.
- Availability of wood fiber from secondary forests will increase significantly over the next 15- 20 years.
BDO Zone Liabilities
- Ban on old-growth harvesting has significantly limited wood supply, leading to sawmill curtailments and business closures.
- Most available wood supply and equipment are tied to a larger sawmill and exporter in the region, and there are no guarantees of collaboration with new developers.
- Securing the rated quantities will likely require a doubling of woodland and milling operations by smaller sawmills in the BDO Zone.
- Remoteness of the BDO Zone presents market-, infrastructure-, and workforce-related challenges.
Infrastructure
- Small sawmills on Prince of Wales Island are positioned for expansion as they pivot towards the growing young growth industry within the Tongass National Forest. Historically dependent on old-growth timber, these mills are adapting to a new era of sustainable forestry by shifting focus to young growth timber, which is more abundant and ecologically sustainable. As the demand for eco-friendly wood products increases, these sawmills are not only contributing to the restoration of the forest but also creating new economic opportunities for local communities in partnership with local, state, federal and tribal governments, as well as the private sector and tribes. With innovations in milling technology and increasing expertise in managing young growth, these small businesses are well-positioned to thrive in a shifting market, while supporting conservation efforts and fostering long-term forest health.
- Infrastructure risks were assessed with reference to a 50- acre waterfront parcel located one mile west of the City of Thorne Bay. As a former log yard, the site is relatively flat with good truck access. There are no buildings or other infrastructure items on the parcel. No current port or dock facilities are in place. The site has access to water and basic utilities, including power. However, telecommunications services are limited, and energy costs are elevated compared to state and national averages. Transportation related risks are moderated by the established air and marine transportation networks servicing Prince of Wales Island, but most infrastructure risks remain elevated compared to other locations in North America.
Local Grants and Incentives
This Prince of Wales (Alaska) BDO Zone is located entirely within the Unorganized Borough of Alaska, an area known for its business-friendly environment for industries to thrive. The Unorganized Borough operates without a borough-level government, allowing for more streamlined interactions and quicker response times for permits and regulatory approvals. This setup has fostered a long-standing culture of collaboration, with a history of successful partnerships between industry, government agencies, not-for-profit organizations, and tribal governments and corporations. These partnerships often focus on sustainable development, community welfare, and job creation, creating a dynamic environment where businesses can grow while adhering to environmental and social responsibility standards. The cooperative nature of this region offers companies a unique advantage—providing both the flexibility to innovate and the support needed for long-term success.
