USA BioEnergy and Ecostrat have announced the issuance of a new ‘AA’ rated Bioeconomy Development Opportunity (BDO) Zone designation for Bon Wier, Texas.
The ‘AA’ BDO Zone rating supports the siting decision and the capital raise for USA Bioenergy’s development of an advanced biorefinery through its subsidiary Texas Renewable Fuels (TRF). The facility will convert 1M green tons of wood waste into 34M gallons of premium clean burning transportation fuel annually, including Sustainable Aviation Fuel, Renewable Diesel, and Renewable Naphtha.
‘AA’ and ‘A’ BDO Zone ratings identify the areas in the country which are best positioned for low-risk bioeconomy project development. Bon Wier’s ‘AA’ Rating for Forest Residues, Pulpwood & Sawmill Residuals is the first ‘AA’ rating issued in North America.
The Bon Wier BDO Zone is rated ‘AA’, or very low risk, based on numerous positive indicators such as a strong surplus of available biomass, a large number of potential anchor suppliers, and a healthy forestry labour market. Approximately 13.6 million green tons per year of woody biomass is generated in the Bon Wier BDO Zone, defined by a 75-mile radius of Bon Wier.
Future expansion will double the plant’s production capacity to 68M gallons annually. In addition, the biorefinery’s demand for thinnings and wood waste will infuse the forestry industry in the Southeast Texas region with stable long-term revenue.
USA BioEnergy is the fund manager of the Double Eagle Opportunity Zone Fund (“DEOZF”), a national Opportunity Zone fund. The DEOZF was created to allow investors to directly invest in renewable energy projects developed by USA BioEnergy, as well as other projects within the bioeconomy that meet the Opportunity Zone requirements. By taking advantage of preferential tax treatment to defer capital gain while investing in renewable energy projects, the fund offers accredited investors the chance to invest in USA BioEnergy’s waste to fuels facilities.
“We are excited that USA BioEnergy intends to utilise the BDO Zone Rating to support an upcoming capital raise,” said Jordan Solomon, Chairman of the BDO Zone Initiative. “‘AA’ ratings are rare. In order to achieve the ‘AA’ rating, Bon Wier was screened and scored using over 100 standardised, transparent, and validated risk indicators based on the BSCR Standards for biobased investment. Bon Wier’s ‘AA’ BDO Zone rating speaks to the strength and resilience of fibre supply and infrastructure in the region.”
Texas site receives rare ‘AA’ Bioeconomy Development Opportunity Zone rating
