DG Fuels Proposes 120 mgy Sustainable Aviation Fuel Project in St. James Parish, Louisiana

by Dan Brown (DG Fuels) Company’s first SAF facility would create more than 6,000 jobs in the Southeast Region -- DG Fuels, an emerging leader in cellulosic drop-in sustainable aviation fuel (SAF), announced it is evaluating a 3,000-acre site in St. James Parish as the potential location of a new low-emission fuel manufacturing facility.

The proposed $3.1 billion investment would create 1,055 new direct jobs with an estimated average annual salary exceeding $72,000. Louisiana Economic Development estimates the project would result in 5,231 new indirect jobs, for a total of 6,286 new jobs in the Southeast Region.

“The addition of DG Fuels to Louisiana is further evidence of Louisiana’s emergence as a prime location for investors taking advantage of the unique business opportunities that the energy transition offers,” LED Secretary Don Pierson said. “We look forward to working with DG Fuels to make this proposed facility, and the high-paying manufacturing jobs it would generate, a reality.”

The Washington, D.C.-based company has developed a patented system for utilizing renewable energy sources, such as agricultural and timber waste feedstock, to reduce aviation fuel’s carbon intensity score by 140 percent when compared to industry standards. DG Fuels estimates the facility would produce 120 million gallons of SAF per year on average, which would remove approximately 1.5 million tons of CO2 from the atmosphere annually.

“DG Fuels baseline process differs from other systems by having little or no environmental emissions either to the atmosphere or waters, while at the same time providing a customer for all forms of agricultural waste to the region’s agricultural community,” said Michael C. Darcy, chief executive officer of DG Fuels.

The proposed site on the west bank of St. James Parish is currently undergoing a front-end engineering design (FEED) study that is estimated to be complete by August 2023. A final investment decision is expected by the end of the year; if DG Fuels moves forward with the project, construction and commissioning of the SAF plant would take approximately three years from that point.

“I’m excited to learn about the possibility of DG Fuels coming to St James Parish,” St. James Parish President Pete Dufresne said. “At our last Council Meeting, Mr. Michael Darcy spoke about the potential for a green facility that provides over 600 employment opportunities for all skill levels and produces little to no emissions. I’m looking forward to exploring what appears to be a great opportunity for our parish.”

DG Fuels is building a very low-CO2 life cycle emissions synthetic fuel system based on its patented high carbon conversion technology that is targeting a 97% efficiency. The DG Fuels technology directly addresses the issue of scale production to meet the environmental requirements of the aviation industry, and does not require the development of new engines or types of distribution infrastructure. DG Fuels delivers a significant value proposition to end-customers, including meaningful environmental benefits and the ability to materially address sustainability goals. If successful, DG Fuel’s carbon efficient solution will tie together all critical elements to power, fuel, and provide SAF to its customers.

Louisiana Economic Development is responsible for strengthening the state’s business environment and creating a more vibrant economy. It is the only state agency in the U.S. accredited by the International Economic Development Council, boasting award-winning programs like LED FastStart, rated the No. 1 customized workforce training program in the U.S. 13 years in a row. In 2022, LED attracted 53 new economic development projects representing 18,137 new direct, indirect and retained jobs and $20.7 billion in new capital investment. Explore how LED cultivates jobs and economic opportunity for the people of Louisiana and employers of all sizes at OpportunityLouisiana.com. READ MORE

Excerpt from The Advocate: In an email, DG Fuels CEO Michael C. Darcy said the company is planning on participating in the state's Industrial Tax Exemption and Quality Jobs programs, which provide property tax abatements and rebates on payroll and capital expenditures. However, he added that the company wants to make sure the plant's employment is "focused in St. James Parish" and that local tax revenues "are at no point diminished below otherwise available to the Parish."

DG Fuels is far from the only company evaluating South Louisiana for a renewable fuel or biofuel project.

Grön Fuels is considering building a $9.2 billion biofuel plant at the Port of Greater Baton Rouge. The company has said it expects to start providing sustainable aviation fuel to one of its key customers, JetBlue, by 2025, though it has not made a final investment decision on the project yet.

Houston-based Arbor Renewable Gas is looking at Port Allen for an $800 million facility that would produce renewable gasoline and “green" hydrogen from wood waste and forest residue. Though initial estimates said Arbor Renewable Gas could start construction this year, the company has yet to announce a final investment decision on the development.

Shell is also planning to transform its Convent plant from a traditional refinery to a sustainable aviation fuel and renewable diesel complex. The London petrochemical giant has projected a 2025 start date for construction for that project, though company officials have yet to confirm they’re officially moving forward with it.

In addition, state officials are pushing for more projects in the “blue” and “green” hydrogen sectors to reduce Louisiana’s industrial carbon dioxide emissions. Hydrogen, a key feedstock for refineries and ammonia producers, is considered “blue” when coupled with carbon capture and “green” if renewable energy is involved. READ MORE