Back

Bon Wier, Texas

The Bon Wier, Texas BDO Zone for Woody Biomass is rated ‘AA’.

Rating Issue Date: October 19, 2022.

‘AA’ ratings denote very high prospective viability of Feedstock Supply and Infrastructure and very low expectations of default risk in the Zone. They indicate very strong ongoing capacity of the region to support new biobased plant operations. This capacity is not significantly vulnerable to foreseeable events.

Download Rating

Call 833-311-4BDO

Learn More Website

BDO Zone Rating

Bon Wier, TX BDO Zone Overview

There is a significant surplus of woody biomass generated in the BDO Zone, defined by a 75-mile radius of Bon Wier with 13.6 million gt/yr of woody biomass generated, consisting primarily of pine pulpwood and sawtimber. Delivered prices of harvest residues from the Bon Wier BDO Zone have averaged $30.81/ton, with $22.08/ton paid for chipped and loaded material ready for transport and $8.73/ton for freight. Delivered prices of mill residues from the Bon Wier BDO Zone have averaged $17.69/ton, consisting of $7.19/ton paid for chipped and loaded material ready for transport and $10.50/ton for freight.

BDO Zone Assets:

13.6 Mgt/yr of woody biomass assessed within the BDO Zone.
Strong growth: 5.3% of standing inventory harvested annually.
Relatively low demand: Within the BDO Zone, total demand for pine pulpwood is ~ 5 Mgt/yr.
Forestry labor market is healthy. No anticipated labor or skill shortages.

BDO Zone Liabilities:

Significant variation in mill residue. Mill-produced biomass ranged from 170,000 to 500,000 gt/yr between 2007 and 2021.
Multiple suppliers subject to the same external risk factors: slow lumber markets can negatively impact sawmill residual and forest residue generation.

In 2021, the price of delivered pine pulpwood averaged $30.87 per ton for the 4.8 million green tons supplied to the Bon Wier BDO Zone market, consisting of $8.19/ton paid as stumpage, $14.58/ton for handling, and $8.10/ton for freight.

Infrastructure

Among the top-rated assets are landfill access, sewage disposal trunk lines, outdoor recreational activities, highway access, and land cost. Overall, Bon Wier, Texas, presents a profile of positively rated infrastructure assets.

The proposed Bon Wier BDO Zone project site is approximately 1,604 acres. Current owner is the Mike Bruce Family Ranch, L.P. The site was originally owned by Louisiana-Pacific as a plywood manufacturing mill; the mill was traded to Georgia-Pacific, which subsequently sold the property to Koch Holdings I LLC.

Property features:

Large existing buildings that could be used for wood storage and water storage tanks. Site is laid out to allow for consistent ingress and egress of trucks.
Existing property and facility have excellent infrastructure including roads, rail, power, natural gas and
water.
Bon Wier is adjacent to Highway 363 between Kirbyville and Bon Wier, Texas. Bon Wier is approximately
12 miles west of the site with access to Highway 96, and 7 miles east of Highway 363 and the Highway 87

junction.
An incentive package has been provided by state and local jurisdictions.

On-site Infrastructure:

Four water wells on site with a small well dedicated to the existing building. Permits will be reissued from the Southeast Texas Ground Water Conservation District.
Entergy Texas Inc (ETI) will provide approximately 5 MW and backup power for 35 MW with information on the benefits of ETI serving the total potential load of 40 MW. Currently, there are two transmission lines (138KV and 69 KV) on site along with a substation owned by ETI.
Natural gas provided by EnerFin Resources. The transmission line is 4” and is 0.25 miles from the existing manufacturing site.
Internet connection by Windstream, which has telecom fiber 6 miles from the site and is in the engineering stage of providing service to the site.
Deep East Texas Council of Governments (DETCOG) has a proposed fiber line 6,000 feet from the site.
The site has approximately 4,500 feet of rail serviced by WATCO and leased from BNSF. BNSF owns the main line.
The property is located within a federal Opportunity Zone.
Bon Wier BDO Zone site is near Highway 363 between Kirbyville and Bon Wier. The site is approximately 12 miles west of the site with access to Highway 96 and 7 miles east of Highway 363 and the Highway 87 junction.
Network of roads gives ready access to Highway 191 and Highway 87, providing excellent connections throughout the region.
Site has approximately 4,500 feet of rail spur entering on the northwest edge of the property serviced by WATCO, which leases the rail from BNS.
BNSF owns the main line.
Lone Star Rail Storage Facility with 350 car storage capacity on-site and over 1300 off-site