
USA BioEnergy has acquired more than 1,600 acres of East Texas land where it intends to build a $2.8 billion biorefinery, converting wood waste into sustainable aviation fuel. (Source: Shutterstock)
Arizona-based USA BioEnergy has acquired more than 1,600 acres of East Texas land where it intends to build a $2.8 billion biorefinery, converting wood waste into sustainable aviation fuel (SAF), the company said Jan. 12.
The aviation sector is counting on SAF to lower emissions. However, the fuel—which can be produced with a variety of feedstock that include used cooking oil and waste—is in short supply and remains more expensive than fossil-based jet fuel. With economies of scale, prices are expected to fall as more producers bring projects online.
“This advanced-fuels facility development milestone underscores USA BioEnergy’s commitment to the future of aviation and energy security,” said Nick Andrews, CEO of USA BioEnergy. “It bolsters our goal of being the world’s leader in advanced fuels.”
The planned facility will be located in Bon Weir, Texas, and will initially occupy about 300 acres. The facility is being developed by USA Bioenergy subsidiary Texas Renewable Fuels with support from state, country and federal credits and tax incentives, USA BioEnergy said in a news release. The project is currently in the detailed design and engineering phase.
Plans are to annually convert 1 million tons of forest thinnings into 65 million gallons of net-zero transportation fuel, including SAF and renewable naphtha. The plant will also have a carbon capture and storage system, aiming to sequester more than 50 million metric tons of CO2 during the facility’s lifetime.
USA BioEnergy has already sealed a 20-year offtake agreement with Southwest Airlines for up to 680 million gallons of neat SAF from the facility. When blended with conventional jet fuel, the SAF could produce the equivalent of 2.59 billion gallons of net-zero fuel and avoid 30 million metric tons of CO2 over the offtake agreement term, the biofuels company said.
Recommended Reading
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-22 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
Shale Outlook: E&Ps Making More U-Turn Laterals, Problem-Free
2025-01-09 - Of the more than 70 horseshoe wells drilled to date, half came in the first nine months of 2024 as operators found 2-mile, single-section laterals more economic than a pair of 1-mile straight holes.
Wildcatting is Back: The New Lower 48 Oil Plays
2024-12-15 - Operators wanting to grow oil inventory organically are finding promising potential as modern drilling and completion costs have dropped while adding inventory via M&A is increasingly costly.
E&P Highlights: Dec. 2, 2024
2024-12-02 - Here’s a roundup of the latest E&P headlines, including production updates and major offshore contracts.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.