The Biomass Supply Chain Risk Standards: A living document?

News for the BSCR Standards

The Canadian Biomass Supply Chain Risk (BSCR) Standards are the result of more than 3 years of input from an Industry Stakeholder Group of over 150 leading bioeconomy financial institutions, capital providers, operators, developers, feedstock producers, industry organizations and academics. Development work has been generously funded by Natural Resources Canada (NRCan) and Ecostrat, and in the US by the US Department of Energy’s Bioenergy Technologies Office (BETO).

Today, the BSCR Standards are in the midst of accreditation as a National Standard of Canada through the Standards Council of Canada (SCC) and the CSA Group. Creation of a harmonized standard through the American National Standards Institute (ANSI) is also on the horizon.

The standardization process requires extensive review and feedback on all document contents and input materials from a large group of industry stakeholders and a public review period. As part of this, details of the Risk Factors and Risk Indicators outlined in the Standards are regularly debated.

For example, what should the Biomass Availability Multiple be for any given biomass project? That is, how much feedstock should be available in the supply basin for a project’s risk to be minimized? Currently, Section 3.1.1 of the BSCR Standards states that a minimum of 1.5 times a project’s required feedstock should be available in the supply basin. However, several reputable sources contend that this figure should be higher and the issue may depend on geography, competition and a variety of other factors.

What do you think?

Each Risk Indicator in the BSCR Standards is open for public comment here. Feedback on any and all components of the Standards are welcomed and encouraged. If you would like to be part of a more formal review process of the Standards, you can request to join the BSCR Industry Stakeholder Group here under the “Join The Stakeholder Group” tab.

Additionally, the next stage of this project is the development of a Risk Ratings Mechanism that, much like a Credit Rating Score– will enable a Feedstock Risk Score to be assigned to every biomass project. The Risk Ratings Mechanism will utilize a qualitative rating system that is currently being developed.

Similar to the Standards themselves, this Ratings Mechanism will require expert feedback and consultation from a Review Committee. Currently the Risk Ratings Review Committee consists of individuals from leading capital market players, including Goldman Sachs, Scotiabank and Citigroup. A full list of all participating Review Committee members can be found here.

Ecostrat is currently recruiting additional Review Committee members. Inquiries to join can be submitted here under the ‘Join The Review Committee’ tab.

 

Written by: Taylor Whitfield 

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