January 16, 2025 [Storage Terminals Magazine]- USA BioEnergy has finalised the acquisition of over 1,600 acres of land in East Texas for its groundbreaking $2.8 billion advanced biorefinery. The facility is designed to convert wood waste into sustainable, net-zero aviation fuel and has already secured a 20-year offtake agreement with Southwest Airlines, marking a significant step forward in the production of ultra-low-carbon fuels for the aviation sector.
The greenfield facility, to be constructed in Bon Weir, Texas, is currently in the detailed design and engineering phase. It will process sustainably sourced forest thinnings to meet the growing demand for SAF. Under the agreement, Southwest Airlines Co. may purchase up to 680 million gallons of neat SAF over 20 years. When blended with conventional jet fuel, this SAF has the potential to produce 2.59 billion gallons of net-zero fuel and reduce CO₂ emissions by 30 million metric tonnes over the contract’s term. According to USABE, this equates to enabling approximately 112,000 short-haul flights or 7,000 long-haul flights per year with net-zero emissions.
“This milestone in advanced-fuels facility development highlights USA BioEnergy’s dedication to the future of aviation and energy security,” said Nick Andrews, CEO of USA BioEnergy. “It also supports our vision of creating good-paying jobs in Newton County, Texas, an area with one of the lowest per capita incomes in the state. This project is a win for the community, the industry, and our business objectives.”
The biorefinery’s initial footprint spans approximately 300 acres, leaving ample space for future growth and expansion. Once engineering and design are complete, construction is anticipated to take two years, followed by a commissioning period of six to eight months. The state-of-the-art facility is expected to process one million tonnes of sustainably sourced forest thinnings annually, producing 65 million gallons of premium net-zero transportation fuels, including SAF and renewable naphtha. Over its lifetime, the plant will capture and sequester over 50 million metric tonnes of CO₂.
The project is supported by state, county, and federal credits and tax incentives totalling approximately $150 million. Local organisations backing the initiative include the Texas Forest Country Partnership, Texas Forestry Association, the City of Newton, Newton County, the Newton Independent School District, Jasper County, the Sabine River Authority, and the Texas Economic Development and Tourism Office of the Governor.
The acquisition and development of this facility underscore USA BioEnergy’s commitment to innovation, sustainability, and the advancement of the aviation industry toward net-zero operations.
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