The BDO Zone Investment Coalition Announces $1 Billion of Deployable Capital for Biobased Projects Located in BDO Zones

(BDO Zone Investment Coalition) The BDO Zone Investment Coalition today announces the mobilization of $1BB of capital for deployment into biobased infrastructure and manufacturing plants located in Bioeconomy Development Opportunity (BDO) Zones.

The BDO Zone Investment Coalition is a group of leading, independent biobased investors, capital markets, and associations that finance or promote the development of biobased projects that produce alternative ground and sustainable aviation fuels, renewable chemicals, bioenergy, and biogas.

BDO Zones are areas in both the US and Canada with sustainable surpluses of biomass feedstock, strong capability, and appetite for biobased development and solid infrastructure to support new manufacturing plants. BDO Zones located in the US may be economically distressed regions where new investment is eligible for powerful federal tax incentives such as the New Market and Opportunity Zone tax credits.

BDO Zones undergo rigorous and extensive due diligence using a framework of over 100 standardized, transparent and validated risk indicators developed by Idaho National Labs and supported by the U.S. Dept. of Energy (BETO) and Natural Resources Canada. “AA” or “A” BDO Zone ratings create a powerful signal to investors and developers that these economically disadvantaged zones are primed for biobased investment and low risk deployment of clean energy infrastructure.

Jordan Solomon, Chairman of the BDO Zone Initiative and CEO of Ecostrat says: “The BDO Zone Initiative enables communities to pull forward green technology into their region, support creation of new markets for biomass, and do so in a way that builds more domestic opportunity.

BDO Zone designations are force-multipliers for local communities to leverage their biobased assets– agricultural residues, wood fiber, food and farm waste– as engines for clean energy infrastructure and job creation.

The availability of $1BB of development capital will further de-risk and attract new energy infrastructure and biobased manufacturing plants to the areas where they are most likely to succeed and where they will have the greatest social impact.”

Rina Singh, Executive VP of Alternative Fuels & Chemicals Coalition (AFCC) says: “BDO Zones are hotbeds for alternative fuel and renewable chemical manufacturing facilities: sustainable feedstock surpluses, strong supply chain capability, community appetite for biobased development, and powerful tax incentives to derisk investment make BDO Zones some of the optimal places in the world for biobased economic development.”

Steve Csonka, Executive Director of the Commercial Aviation Alternative Fuels Initiative (CAAFI) says: “CAAFI recognizes the unique challenges facing development and financing of new sustainable aviation fuel (SAF) facilities, particularly given the economic downturn brought on by COVID 19. It is in this context that CAAFI supports the designation of BDO Zones as a means to facilitate the production of SAF.

The BDO Zone initiative will support investment in new SAF production plants which will then play a crucial role in a sustainable economic recovery that will strengthen energy independence efforts and contribute to long term prosperity and create jobs. CAAFI fully supports the BDO Zone Program and strongly recommends the designation of as many BDO Zones as practicable in order to attract solid investment in SAF production facilities.”

Mark Riedy of Kilpatrick Townsend & Stockton says: “$1 billion is only the beginning. We expect the BDO Zone Initiative to supercharge the biobased job creation ability of the New Market Tax Credit Program, the Opportunity Zone program and other federal and state tax incentives like them in the U.S. to unlock billions to help ensure that the federal government’s commitment to clean energy, job creation and social justice are served.”

Todd Lewis, President of Agricultural Producers Association of Saskatchewan (APAS) which represents over 16,000 farmers says: “We support standardization and certification levers which will help businesses increase their innovation capacity and decrease the risk of bringing their innovations to market. We also support this opportunity to attract new innovative bio-marketplaces to rural Saskatchewan. In addition to introducing more sustainable products like biofuels, bio-products, bio-chemicals into the Canadian marketplace, The BD Zone Initiative can provide increased market diversification opportunities for our farmers and ranchers.”

The Melville, SK BDO Zone designation for wheat straw was publicly issued in January 2021, with the full risk rating report available to download here. BDO Zone designations for Arlington, OR (municipal solid waste), Barnwell County, SC (woody biomass), Siloam Springs, AR (poultry litter), and Clarksville, AR (poultry litter) are slated for issue throughout Q2 and Q3 2021. The BDO Zone Initiative advocates for a goal of 1,000 BDO Zone designations in 4 years to catalyze biobased investment and infrastructure development, strengthen energy independence efforts, create jobs, and contribute to long term prosperity.

About the BDO Zone Investment Coalition: The BDO Zone Investment Coalition is a group of key North American biobased investors and capital market participants with a collective goal of investing $1 billion in new renewable chemical, sustainable aviation, ground transportation fuels, and biogas manufacturing plants located in BDO Zones.

The BDO Zone Investment Coalition is comprised of individuals from the following organizations: Elliot Brown (Citigroup), David Livingstone (Citigroup), Justin Goldstein (Goldman Sachs), Chris Tindal (Commercial Aviation Alternative Fuels Initiative), Rina Singh (Alternative Fuels & Chemicals Coalition), Gary Greenblatt (Marathon Capital), Geoff Paul (Marathon Capital), Richard Podos (Lance Capital), Maximo Blandon (Stephens), David Roeder (TortoiseEcofin), Mark Riedy (Kilpatrick Townsend & Stockton), John May (Hamilton Clark Sustainable Capital), Shirley Speakman (Cycle Capital Management), Max Vernier (Live Oak Bank), Hannah Kirby (Carolina Opportunity Funds), Derek Griffin (Munich Reinsurance America), Scott Chabina (Chabina Energy Partners), and BDO Zone Initiative Chair, Jordan Solomon (Ecostrat).

About the BDO Zone Initiative: The BDO Zone Initiative is led by Chairman Jordan Solomon of Ecostrat and the Alternative Fuels and Chemicals Coalition (AFCC) and informed by the Bioeconomy Recovery Task Force. READ MORE

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