Yep, ev’rything’s big in Texas: Bon Weir, TX nabs first AA BDOZone rating for woody biomass in US

In Texas, the BDO Zone Initiative has issued an ‘AA’ rated BDO Zone designation for Bon Wier, Texas for 2,000,000 green tons per year of woody biomass. ‘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. 

CEO of the BDO Zone Initiative, Jordan Solomon, noted, “AA’ ratings are rare. In order to achieve the ‘AA’  or very low risk — rating, Bon Wier was screened and scored using over 100 standardized, 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 fiber supply and infrastructure in the region.” 

The Bon Wier project

 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. 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.

Bon Wier is a small community located 1.5 miles west of the Texas-Louisiana border in eastern Newton County. The county is home to approximately 13,788 residents. Bon Wier possesses a long history in the lumber and forestry industry, dating back to its inception in 1905. Established to take advantage of the growing timber industry, the community was a major stop on the primary lumber servicing line of the Jasper and Eastern railroad.  

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 has engaged Citigroup Global Markets to act as lead underwriter for a tax-exempt private activity bond offering that will comprise the majority of the senior debt financing for the Texas Renewable Fuels project. 

The BDO Zones

The BDO Zone Initiative is an economic development platform that enables local communities to earn BDO Zone Ratings—to catalyze biobased investment and commercial project development in BDO Zone designated regions for new biofuel, renewable chemical, biogas, and bioproduct plants. 

With a goal of 1,000 BDO Zones in four years across the U.S., this Initiative has the potential to create over 160,000 new clean jobs, reduce greenhouse gas (GHG) emissions by 2.59% and generate direct economic benefits of over $15B. More about BDO Zones here.

USA BioEnergy is the fund manager of the Double Eagle Opportunity Zone Fund, 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. More on that here. 

Reaction from the stakeholders

“USA BioEnergy is committed to delivering over 100M gallons of sustainable aviation fuel into LAX annually. Airlines using our sustainable aviation fuel will eliminate over 50M metric tons of greenhouse gas emissions over a 20-year period. We achieve this by capturing CO2 as part of our process then sequester it in permanent geologic storage deep underground. This gives us the lowest carbon intensity score in the industry. We do this as part of our mission to achieve our environmental, social, and corporate governance goals and we strive to meet them globally to achieve a better and more sustainable future for all.” stated Nick Andrews, CEO, USA BioEnergy.

“Working with CEO, Nick Andrews and the leadership team this past year has been a great pleasure. We also want to thank all the partners and supporters of this project in Newton County. We especially want to thank Governor Greg Abbott and his team for all the support and programs to solidify their decision for Newton County.” said Kenneth Weeks, Newton County Judge.