Southwest Colorado
The Southwest Colorado BDO Zone for Woody Biomass is rated ‘BBB’.
Rating Issue Date: April 25, 2025.
'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.
Southwest Colorado holds an investment-grade BDO Zone ‘BBB’ Rating for Forest residuals, Sawmill residuals, Pulpwood. Issued in Apr 2025, the rating certifies approximately 123,200 gt/yr of reliable, low-risk biomass feedstock available within a 75-mi driving distance from the centre point (Mancos, CO).
A ‘BBB’ rating is an investment grade rating, signalling a good, moderate-risk feedstock supply. It signals to developers, lenders, and investors that Southwest Colorado’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
- Existing logging/grinding equipment capacity sufficient
- Co-location opportunity with sawmill and pellet mill
- Limited competition for sawmill residues, forest residues, softwood pulpwood
- Low regional utility costs (natural gas, electricity, water, telecommunications)
- High community opposition risk to forest restoration and biomass activities
- High reliance on government subsidies for public lands forest management
- Declining sawmilling capacity from reduced San Juan National Forest fiber
- Significant investment risks securing rated quantities from national/state forests
Infrastructure & sites
- 30-acre site co-located with forest products operation
- Shared infrastructure, expedited permitting potential
- Utilities: natural gas, electricity, water, wastewater, internet (low costs)
- U.S. Highway 160 access
- Cortez Airport (18 miles)
- Vocational training support, low crime, affordable housing, healthcare
- Manageable infrastructure risks for biomass projects
- 18 miles from Mancos on U.S. Highway 160
- 4.5-acre commercial-zoned site
- 4,000 SF warehouse with office space
- 13,464 SF flex space available
- Green space lots with city water/sewer
- Only industrial-zoned site in Pagosa Springs
- Opportunity Zone location near Archuleta County Airport
- Year-round recreation (hiking, skiing, disc golf)
- Existing sawmill and Forest Health Biochar business tenants
- 3-phase electric, water, sanitation, natural gas, fiber/wireless broadband
- 8,100 ft non-commercial runway at Steven's Field
- 0.86 to 1.2-acre available lots
- Dolores County Development Corporation ownership
- Ground leases available (land/building separation)
- County Road H & Weber Park Loop access (maintained, snow removal)
- Potable water, electricity, natural gas, cable, phone, summer irrigation
- Century Link high-speed internet
- Local septic and solid waste services
Local grants & incentives
- Enterprise Zone Tax Credits: capital investment credit, job creation credit, job training credit, R&D tax credits, property tax abatement options
- Job Growth Incentive Tax Credit: 50% FICA tax per net new job, 8-year performance-based, 10-year carryforward
- Opportunity Zones: capital gains tax incentives for business/real estate development
- Rural Jump-Start Program: state income tax relief, sales/use tax exemption, personal property tax exemption, grant access
Contacts
