Illinois Announces Incentives for SAF Project under Development at Previously Shuttered Ethanol Plant

October 02, 2024

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by Erin Voegele (Ethanol Producer Magazine) The government of Illinois on Sept. 30 announced Crysalis Biosciences Inc. will receive incentives under the state’s Reimagining Energy and Vehicles in Illinois (REV Illinois) program to support its sustainable aviation fuel (SAF) project under development in Sauget, a suburb of St. Louis, Missouri.

REV Illinois, administered by the Illinois Department of Commerce and Economic Opportunity, is a highly competitive incentives program that aims to encourage companies in the electric vehicle and renewables sectors to expand or relocate within the state. According to the DCEO, benefits of the program can last 20 to 30 years and may include provisions to retain income tax withholding, exemptions on utilities taxes, tax credits, training credits, grants and equipment/capital cost exemptions. Local jurisdictions can also provide property tax abatement for the life of the agreement. Crysalis represents the first REV Illinois agreement for a SAF project.

Crysalis plans to invest $239.5 million to develop a first-of-its-kind SAF plant, creating at least 35 new jobs. According to information released by the state of Illinois, Crysalis has restarted a shuttered 57-cre ethanol plant and plans to transform it into a facility that produces 5,000 to 10,000 barrels per day of low carbon intensity (CI) SAF and SAF feedstock, featuring a carbon intensity score 90% lower than that of traditional fossil-derived jet fuel.

In a statement issued on Aug. 5, Crysalis said it had acquired the Monarch facility, a 55 MMgy ethanol plant located in Sauget, during the first quarter of 2023. According to the company, the facility had been shuttered 2019. As of the first quarter of 2024, Crysalis said the facility has completed upgrades and received the necessary environmental authorizations to resume operations.

Crysalis plans to retrofit the facility to produce 30 MMgy of SAF. The company also plans to deploy technology developed at the National Renewable Energy Laboratory to enable the production of 100% biobased acetonitrile at the plant. READ MORE

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Crysalis Biosciences Inc. Invests $239.5 Million for Sustainable Aviation Fuel Facility in Sauget (Office of the Governor of Illinois)
Former Central Ethanol Plant Reopens (Grain Journal)

Excerpt from Office of the Governor of Illinois: Illinois' First Low-Carbon Sustainable Aviation Fuel Plant Bolstered by REV Incentives -- Governor JB Pritzker, Crysalis Biosciences Inc. and the Illinois Department of Commerce and Economic Opportunity (DCEO) today announced a Reimagining Energy and Vehicles in Illinois (REV Illinois) agreement for Crysalis' $239.5 million investment to develop a first-of-its-kind sustainable aviation fuel (SAF) plant. The investment, which creates at least 35 new jobs in Sauget, will transform the fuel and chemical industry while reducing the carbon footprint in Illinois by manufacturing SAF, an alternative jet fuel made with a smaller carbon footprint.

"There is no better state equipped for the sustainable fuel industry than Illinois," said Governor JB Pritzker. "With a $239.5m investment through REV Illinois, Crysalis Biosciences will build a groundbreaking sustainable aviation fuel plant right here in our state - advancing our mission to drive economic growth while reducing our carbon footprint. This marks a new era of clean energy production for Illinois, and we're just getting started."

"Investments like this bring us closer to a cleaner, more sustainable future for Illinois," said Lt. Governor Juliana Stratton. "Crysalis Biosciences' commitment to creating sustainable aviation fuel is an exciting step forward, and it shows how innovation can drive both economic growth and environmental progress in our state."

As a pioneering biorefiner, Crysalis works to meet the growing demand for SAF and aims to accelerate the world's transition to zero-carbon products. Crysalis chose to locate its state-of-the-art biorefinery in Sauget due to the area's numerous strategic geographic advantages.

"Crysalis Biosciences is very appreciative of the support of the Governor and the Department of Commerce and Economic Opportunity for the development of our first of a kind biorefinery," said Crysalis CEO Sanket Gandhi. "Crysalis' biorefinery is bringing innovative zero-carbon chemistry and technology developed in the lab to the market."

In an effort to advance zero-carbon futures, Crysalis has restarted a shuttered 57-acre Metro East ethanol plant and plans to transform it into a plant that produces 5,000 to 10,000 barrels a day of low carbon intensity SAF and SAF feedstock, featuring a carbon intensity score 90% lower than that of traditional fossil-derived jet fuel. The company's diligence and preparation to meet stringent environmental standards positioned them to secure one of the first environmental authorizations to commence operations under new Illinois Environmental Protection Agency standards.

"Illinois continues to lead the clean energy revolution by welcoming Crysalis Biosciences to manufacture sustainable aviation fuel in Sauget," said DCEO Director Kristin Richards. "REV Illinois is changing the way we do business in Illinois - incentivizing sustainable innovations that will significantly reduce our carbon footprint."

With its commitment to investing $239.5 million and adding at least 35 jobs, Crysalis will receive Reimagining Energy and Vehicles (REV) incentives from DCEO - the first agreement secured for a sustainable aviation fuel manufacturing project. REV provides competitive incentives for EV, solar, renewable and energy storage manufacturers to move or expand in Illinois. A link to the executed REV agreement can be found here.

"The Metro East community will greatly benefit from Crysalis' new sustainable aviation fuel facility in Sauget," said Senator Christopher Belt (D - East St. Louis). "From creating new jobs to lowering carbon emissions, this innovative facility is just what the State is looking to invest in with its REV program."

"There's no time to waste when fighting climate change, and Crysalis Biosciences is helping Illinois on its journey toward a zero-carbon future," said Representative Katie Stuart (D - Collinsville). "As part of our world-class manufacturing workforce, Crysalis' sustainable aviation fuel technology will have a lasting impact."

Crysalis' investment builds upon major REV agreements this year, including electric vehicle (EV) manufacturer Rivian investing $1.5 billion in Central Illinois to produce its highly anticipated R2 model, EV manufacturer Ymer Technology opening its U.S. headquarters in Buffalo Grove, EV battery material supplier Bedrock Materials locating its research and development headquarters in Chicago, and EV component manufacturer Wieland Rolled Products North America modernizing its East Alton facility - one of six across Illinois. These investments follow a banner year for economic development in the EV and clean energy sector, including Gotion's EV battery gigafactory in Manteno - which represents the largest manufacturing investment in decades and the largest EV battery investment to date, as well as REV agreements with Manner Polymers in Mt. Vernon, who is building a first-of-its kind solar-powered PVC compounding plant using clean energy generated on-site; Prysmian Group in Du Quoin, whose $64 million expansion will manufacture cables for the renewable energy and EV sectors; and Microlink Devices, which manufactures state-of-the-art solar cells and solar shields in Niles.

About Crysalis Biosciences: Crysalis Biosciences is a biorefining company dedicated to renewing and revitalizing U.S. chemical manufacturing infrastructure with innovative biochemical production technologies. Crysalis' cutting-edge technology and strategic industry alignment will provide a path for many companies to reduce their environmental impact while fostering economic growth and returns to their stakeholders. For more information see the company's website: crysalisbio.com. READ MORE

Excerpt from Grain Journal: Crysalis BioSciences Inc. has restarted a shuttered ethanol plant in Sauget, IL and is ramping up its annual production to 54 million gallons of ethanol with plans to convert the ethanol into 31.1 million gallons of sustainable aviation fuel (SAF) by 2027.

Based in Columbus, GA, Crysalis BioSciences purchased the former Center Ethanol plant in February 2023 for $8 million in back taxes from St. Clair County, according to Peter Wright, an environmental lawyer based in Washington, D.C., who is vice president of compliance and external engagement for Crysalis.

Its investment in the project totals $200 million, the company has said.

...

Since purchasing the site, Crysalis completed the essential renovations needed by the plant in the first quarter of 2024, equipping it with what the company called a “state-of-the-art technology for future productions.” The plant hopes to reach its full ethanol production of 54 million gallons of ethanol a year by the end of 2024 or in early 2025. Several former Center Ethanol employees have been rehired, and several new employees were hired and trained to operate the plant. “A key piece of being able to restart the plant was the receipt of an air permit from the Illinois Environmental Protection Agency the spring of 2024,” Wright stated.

The plant will need 19.3 million bushels of corn a year to produce 54 million gallons of ethanol that can be processed into 31.1 million gallons of SAF.

After evaluating all the major technology providers for converting ethanol into SAF, Wright said Crysalis has signed a licensing agreement and an announcement is forthcoming. During the selection process for a SAF technology provider, he added, Crysalis thoroughly evaluated the energy efficiency and the output of SAF that the different technologies can produce.

Plant History

The former Center Ethanol plant is located on a 57-acre site across the Mississippi River from the Gateway Arch in St. Louis, MO. Construction from a Delta-T design was completed in 2008 and the plant ceased operations in 2019. At the time of its construction, the plant cost $101 million to build and included “innovative construction for receiving, grain storage, grinding, processing and fermentation while also requiring electrical, maintenance and office construction,” according to the website of MC Industrial, a wholly owned subsidiary of McCarthy Holdings, Inc. There were 18 field-erected tanks, including four 763,000-gallon fermentation tanks, a 1-million-gallon “beer” well and four distillation tanks.

Crysalis chose to purchase the plant for its first biorefinery for several reasons, Wright noted, including its proximity to the large St. Louis metropolitan area, which offers an abundance of food waste that can be converted into natural gas and, eventually, used to help power the ethanol plant. In addition, the site offers excellent connections to major highways, rail, barge service on the Mississippi River, nearby transportation fuel terminals, and a major interstate fuel pipeline connected to several airports.

Crysalis plans to produce its SAF featuring a carbon intensity (CI) score that is 90% lower than that of traditional petroleum-derived jet fuel. “The company is looking at many ways to lower the carbon intensity of the ethanol that it produces,” Wright remarked. “An initial focus is on the installation of carbon dioxide capture equipment that will facilitate potential sales of carbon dioxide as well as carbon sequestration.” Second, the company is also looking to install an anaerobic digester that will produce renewable natural gas from waste products to replace some of the petroleum-based natural gas the company purchases.

The ethanol-to-SAF plant also will produce bio-acetonitrile (Bio-CAN), Wright said, using innovative technology developed at the National Renewable Energy Laboratory. The technology will produce the world’s first 100% bio-based acetonitrile with a reduced CI that is similar to the 90% lower CI achieved by its SAF production process. “It is anticipated that 3% to 4% of the ethanol it produces will be used to produce five kilo tons per year (kTa) of oligonucleotide grade Bio-ACN, with the balance going into the manufacture of SAF,” Wright said. “Bio-ACN will be a drop-in replacement for conventional acetonitrile that is produced from fossil fuel [...] Bio-ACN does not have some of the low concentration of toxic chemicals like hydrogen cyanide (HCN).”

Acetonitrile is used in the production of acrylic fibers, synthetic rubber, and plastics, in addition to industrial and pharmaceutical uses as well as lithium-ion battery manufacturing. Wright said ACN production was severely disrupted in 2008, when the Chinese government shutdown its manufacturing sector to improve air quality for the Beijing Olympics.

Financing Available

In August, Crysalis announced the successful closure of an investment by Airbus, which marked what the company called “a significant step forward in the company’s mission to manufacture zero carbon biochemicals creating green chemical manufacturing infrastructure in the United States.” READ MORE