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Melville, Saskatchewan

The Melville, Saskatchewan BDO Zone for Wheat Straw is rated ‘A’.

Rating Issue Date: November 26, 2020.

‘A’ ratings denote high prospective viability of Feedstock Supply and Infrastructure and low expectations of default risk in the Zone. Capacity to support new biobased plant operations is considered strong.

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BDO Zone Rating

Melville, SK BDO Zone Overview

Feedstock Price is expressed in CAD ($), FOB plant yard, assuming the plant is located centrally in the BDO Zone. Maximum transport distance is calculated assuming the maximum quantity in this BDO Zone Rating (300,000 ODMT). Delivered feedstock cost for projects with lower intake can be expected to be at the lower end of the BDO Zone’s price range.

BDO Zone Assets:

Stable long-term outlook on feedstock price and quantity: low impact of seasonal variation on feedstock price and quantity.
Large Biomass Availability Multiple (BAM) at a 38% grower participation rate and within 150 km.
In the event of decreased wheat straw production, supply basin can be expanded at a marginally increased transportation cost.
No large-scale competition for wheat straw.
Positively rated infrastructure asset profile.

BDO Zone Liabilities:

Lack of suitable harvesting equipment for large-scale harvest at the present time. Moderate to high probability of necessity to engage third-party company to provide square balers.
Average farm size is relatively small. Thus, sourcing large quantities will require engagement of large numbers of growers.
Lack of initial interest from large growers.

Infrastructure

The City of Melville presents a positively rated infrastructure profile. Among the top-rated assets are the ease of local rail and highway access, and the safe and vibrant local community. The lowest rated asset is the existed (lack of) plant infrastructure.