“The push to expand renewable energy development globally is undeniable, but without supporting mechanisms to de-risk investment and accelerate capital flow to new projects, renewable energy potential will never be fully actualized. This is where effective standardization frameworks come into play, and where the Biomass Supply Chain Risk (BSCR) Standards take center stage.
In 2017, the U.S. DOE funded this major step forward in the arena of biomass finance. With the support of Idaho National Laboratory and Los Alamos National Laboratory, Ecostrat developed the new Biomass Supply Chain Risk Standards. These standards help capital markets more effectively quantify biomass feedstock risk, allowing capital to properly structure around bioprojects and driving investment into the sector.
As the BSCR Standards is proven more efficacious, support and adoption from industry and government is accelerating. Recently, the Standards Council of Canada began the accreditation process for the Canadian BSCR Standards as an official national standard of Canada. Harmonized accreditation of the BSCR Standards by the American National Standards Institute is also on track for 2021.
A Proven Solution
We know that standards work to create efficiencies for capital markets and drive investment because standardized credit ratings are a staple of the modern economic infrastructure and support $10 trillion in investments and lending to new developments around the globe every year. At their base, credit ratings consist of a standardized approach to analyzing risk; a scoring system to calculate risk and alphanumeric ratings (i.e. AA, A, BB) to efficiently signal the credit risk to investors. This is exactly what we don’t have in the biomass sector –and it is a major reason why investment into biomass-based renewable energy is slower and more expensive than it could be.
The Next Step…”
To read the full article, visit Biomass Magazine.
President and CEO, Ecostrat
Project Manager, Ecostrat