USA BioEnergy receives over $150M in State and Local incentives to develop an advanced biorefinery in Newton County, Texas
USA BioEnergy through its subsidiary, Texas Renewable Fuels (TRF), is pleased to announce the development of an advanced biorefinery that will convert 1M green tons of wood waste into 34M gallons annually of premium clean burning transportation fuel including Sustainable Aviation Fuel, Renewable Diesel and Renewable Naphtha. Future expansion will double the plant’s production capacity to 68M gallons annually. The company has secured fuel offtake agreements with a major trading and logistics company as well as one of the world’s premier airlines and will announce its partners and suppliers in greater detail in the coming months. In addition, the biorefinery’s demand for thinnings and wood waste will infuse the forestry industry in the Southeast Texas region with stable long-term revenue. The plant will also capture and sequester approximately 50M metric tons of CO2 over the life of the biorefinery. This gives Texas Renewable Fuels one of the lowest Carbon Intensity (CI) scores in the industry. The Company benefits from state and federal credits and tax incentives created to incentivize development and offset the cost of renewable fuels.
“Biomass gasification is a well-established method of converting any waste stream into synthesis gas which can readily be converted into hydrocarbon fuels by the Fischer-Tropsch process and upgrading technologies. This approach is being used by a number of projects as it is more feedstock efficient than processes such as cellulosic ethanol production which cannot use all the carbon in wood and waste feedstocks. The gasification/F-T process is also easily adaptable to Carbon Capture and Storage (CCS) as removal of CO2 from the process stream is inherent to the basic technology set. Thus, using biomass feedstocks with CCS, USA Bioenergy can produce deeply negative CI fuels which meet all customer requirements. The fuels produced using CCS will have at least 3 times greater reduction in GHG emissions than fuels produced using other types of feedstock. And there is vastly more feedstock available for expansion of this technology than there is for other renewable fuel production processes.” – Dr. Robert Freerks, Vice President of Product Development, USA BioEnergy.
“USA BioEnergy performed an extensive site search and analysis to identify the best location for our project. State and local incentives then became the key component of our decision and we’re proud to select Bon Wier,” said CEO, Nick Andrews who went on to say, “Our investment in Newton County will exceed $3.4 Billion and will provide significant opportunities for employment”.
"We are excited that USA BioEnergy has chosen East Texas as the home for their new advanced biorefinery," said Governor Greg Abbott. "This investment will further cement Texas as an innovative energy leader and will bring unprecedented economic opportunities to Bon Weir and Newton County. Thank you to USA BioEnergy for selecting Newton County for this incredible project and I appreciate the hard work of our local state and state partners to secure this investment. I look forward to our continued work together as we create an even brighter future for the entire Lone Star State."
“We’ve had tremendous assistance from Economic Development in Newton County, including leadership from Judge Kenneth Weeks, Nancy Windham, President & CEO of Texas Forest Country Partnership, Don Iles with Sabine River Authority of Texas and Rob Hughes, Executive Director, Texas Forestry Association among many others.” said CEO Nick Andrews.
“It is with great pleasure and enthusiasm that we welcome Texas Renewable Fuels to Newton County. The announcement of this $1.7 billion project brings news of 142 new jobs at completion, an estimated 585 direct construction and related workers’ jobs during construction with $877 million in direct revenues for construction related companies. In total, the project supports an estimated $1.2 billion in gross area product or economic activity during construction. Texas Renewable Fuels will bring substantial improvement in the quality of life for the residents of Newton County. Working with CEO, Nick Andrews, and the leadership team this past year has been a great pleasure. We also want to thank all the partners and supporters of this project to Newton County. We especially want to thank Governor Greg Abbott and his team for all the support and programs to solidify their decision for Newton County.” - Kenneth Weeks, Newton County Judge.
‘I would like to express my appreciation to Texas Renewable Fuels for selecting Newton County to build a new manufacturing facility which will provide and support the growing market for sustainable and renewable fuels. The economic impact of this project will benefit the community, local businesses and grow our local and state economic output.’ Robert L. Nichols, State Senator, Senate District 3.
James White, State Representative, House District 19, in support of the project, stated “Newton County is a phenomenal place that is poised for economic expansion and growth. I am very excited about Texas Renewable Fuels selecting a site in Newton County which will increase local prosperity in rural Deep East Texas. I support the creation of jobs and the diversification of our nation’s energy portfolio. Texas Renewable Fuels will create 142 jobs at completion and provide additional opportunities for Newton County by providing opportunity through cutting-edge science, new technology and a market for our wood fiber.”
"Newton Independent School District is excited about the announcement by Texas Renewable Fuels, who will be locating an advanced biorefinery within the boundaries of Newton ISD. Newton ISD participated in a Chapter 313 incentive, which temporarily limits a property’s appraised value to encourage business investments within school district borders. Texas Renewable Fuels has agreed to create 142 permanent, full-time jobs. The project will bring industry to the Newton area, an enhancement towards the education of our youth and the quality of life of our current and future workforce." - Michelle Barrow, Newton Independent School District Superintendent.
"The Sabine River Authority of Texas is excited by the announcement that Texas Renewable Fuels will be locating an advanced biorefinery in Newton County. The project will promote economic development and generate life changing opportunities for residents of Newton County and the surrounding East Texas region.” - David Montagne, Executive Vice-President, and General Manager of The Sabine River Authority of Texas.
“The Texas Forestry Association (“TFA”) is very excited and supportive of the Texas Renewable Fuels announcement to locate in Newton County. The TFA is all about clean, healthy, and productive forest ecosystems and this project supports those needs. This new market option would increase the resiliency of our intricate supply chain. By providing “green” market solutions for our forest stewards, forest landowners will more likely keep their property as healthy Texas forests!” - Rob Hughes, Executive Director, Texas Forestry Association.
“The Texas Forest Country Partnership congratulates Texas Renewable Fuels and Newton County on the announcement of a $1.7 billion advanced biorefinery plant in Bon Wier. The addition of the new business and facility will supply the growing market for sustainable and renewable fuels, create 142 new jobs at completion and generate an estimated direct construction payroll of $219 million. Thank you, CEO, Nick Andrews, and the entire leadership team for committing your support to the industry, Newton County, the Forest Country Region, and the State of Texas. It has been a privilege to work alongside TRF, multiple local, regional, and statewide entities to see this project come to fruition. A great example of how hard work and perseverance pays off. Thank you, Governor Greg Abbott, for your support and providing a gateway to keeping Texas #1!” - Nancy C. Windham, President & CEO, Texas Forest Country Partnership.
The Company hired Forest2Market to conduct an extensive feedstock study to confirm the volumes available and pricing projections for wood waste in the region. “Forest2Market recently completed a detailed study for USA BioEnergy on RFS certified biomass availability in the area surrounding the planned biorefinery in Bon Wier, Texas. After months of research and analysis, we concluded that there is an abundance of woody biomass feedstock supply available to support both the initial phase of the plant, as well as the company’s future expansion plans to double production.” – Larry Sullivan, Bioenergy & Biochemical Sector Sales Manager, Forest2Market.
“Height Capital Markets has been retained by USA BioEnergy to raise capital. We have been incredibly impressed with the management team and their level of readiness to date.” John Akridge, CEO of Height Capital Markets stated, “USA BioEnergy is striving to be the world's leader in advanced biofuels, and Height is excited to help make this vision a reality in the marketplace.”
USA BioEnergy is proud to work with Citigroup for permanent debt financing. “USA BioEnergy has engaged Citigroup Global Markets Inc. to act as lead underwriter for a tax-exempt private activity bond offering that will comprise the majority of the senior debt financing for the Texas Renewable Fuels project. For the past two-plus years Citigroup and USA BioEnergy have worked closely to develop an efficient and achievable plan. Citigroup is a leader in Environmental, Social and Governance (ESG) finance.” - David Livingstone, Managing Director, Citigroup.
“We’re hedging a portion of our environmental credits to provide lenders with certainty of payment. We do this as a risk mitigation measure to give comfort to our financial partners” David Prom, Chairman, USA BioEnergy.
USA BioEnergy’s work with “Our firm works with Nick Andrews and his team on the company’s offtake agreements and governmental affairs, including federal environmental policy initiatives. USA BioEnergy is advocating for clean fuels and low carbon policies that incentivize the renewable fuels industry. USA BioEnergy is an active member of the Alternative Fuels and Chemical Coalition; a leading DC lobby that advocates for public policies to promote the development and production of alternative fuels, renewable chemicals, biobased products, and sustainable aviation fuels.” - Mark J. Riedy, Partner Kilpatrick Townsend.
“USA BioEnergy is committed to delivering over 100M gallons of sustainable aviation fuel into LAX annually. Airlines using our sustainable aviation fuel will eliminate over 50M metric tons of greenhouse gas emissions over a 20-year period. We achieve this by capturing CO2 as part of our process then sequester it in permanent geologic storage deep underground. This gives us the lowest carbon intensity score in the industry. We do this as part of our mission to achieve our environmental, social and corporate governance goals and we strive to meet them globally to achieve a better and more sustainable future for all” stated Nick Andrews, CEO, USA BioEnergy.
The company expects project completion in late 2025.