USA Bioenergy and Texas Renewable Fuels to Develop $2.8 Billion Advanced Biorefinery in Texas

In a significant move towards sustainable energy, USA Bioenergy, in partnership with Texas Renewable Fuels, has announced plans to develop a $2.8 billion advanced biorefinery at the site of the former Louisiana Pacific plywood mill in Bon Wier, Texas. This ambitious initiative is set to transform forest byproducts—sustainably sourced wood waste and thinnings—into low-carbon fuels, notably renewable naphtha and sustainable aviation fuel (SAF).

The project, which was unveiled by Governor Greg Abbott in 2022, represents an initial investment of $1.7 billion and is expected to create over 140 permanent jobs in the region. With more than 1,600 acres secured for the refinery, USA Bioenergy aims to revitalize this idle property and establish a clean energy hub by 2025.

A pivotal aspect of the refinery's operations is its 20-year offtake agreement with Southwest Airlines, which encompasses the production of up to 680 million gallons of SAF. The facility is projected to generate between 34 million and 65 million gallons of renewable fuels annually, contingent upon the final design specifications. USA Bioenergy has also confirmed the implementation of Honeywell's Experion PKS control system at the Bon Wier plant, collaborating with Johnson Matthey to enhance technological capabilities.

Nick Andrews, CEO of USA Bioenergy, emphasized the integration of forest thinnings into bioenergy production, bolstered by carbon capture and sequestration technologies. This collaboration with technology providers positions the company to create a fully integrated alternative fuels solution.

The project is supported by approximately $150 million in state, county, and federal credits and tax incentives, with local backing from organizations like the Texas Forest Country Partnership and the Texas Forestry Association. Andrews highlighted the initiative's potential to create well-paying jobs in Newton County, an area characterized by one of the lowest per capita incomes in Texas, framing it as a triple win for the community, the industry, and the company's objectives.

Once operational, the refinery is expected to employ around 200 individuals full-time, alongside hundreds of construction jobs during its build-out phase, while also opening a new market for forestry byproducts in East Texas.

Despite the positive trajectory marked by land acquisition and technology partnerships, construction has not yet commenced. USA Bioenergy indicates that engineering and design work is still underway, with construction anticipated to span approximately two years once it begins. Full operational capabilities are projected for 2028 or 2029.

As the project moves forward, it remains a blend of anticipation and careful planning. Andrews reiterated the commitment to progress during this crucial phase, emphasizing the significance of the undertaking for the future of aviation and energy security.