February 08, 2024 [Biomass Magazine]- Stratagic Biofuels, the leader in developing deeply negative carbon footprint renewable fuel plants, and Sumitomo Corporation of Americas (SCOA), a subsidiary of Sumitomo Corp., a leading Fortune 500 global trading and business investment company dedicated to sustainability, announced today that they have entered into a joint development agreement for the Louisiana Green Fuels (LGF) project at the Port of Columbia in Caldwell Parish, Louisiana.
SCOA will take an anchor position and lead the formation of a Japanese-based investment consortium aimed at funding the majority of development capital needed to carry the project to Financial Investment Decision (FID) and commencement of construction in early 2025. As part of the agreement, SCOA will also acquire rights at FID to participate for a portion of the full project equity requirement. In a decisive strategic shift related to the investment, Strategic Biofuels also unveiled plans to change its primary renewable fuel product to sustainable aviation fuel (SAF). SCOA intends to provide a 20-year offtake for the approximately 640 million gallons of renewable fuels produced as well as all state and federal renewable fuel credits.
“Our goal has always been to bring online a fuels plant contributing to a sustainable future, and we are thrilled to have SCOA as our partner in our LGF endeavor. The shift to SAF is an exciting moment for us and our partners, for the energy landscape in Louisiana and for the greater global energy transition overall,” said Paul Schubert, CEO of Strategic Biofuels. “Although we have a lot of work ahead of us, our team is fully prepared to advance the project to FID and supply SCOA with SAF.”
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