USA Bioenergy, LP Sign Feedstock Letter Of Intent
USA BioEnergy (USABE) has signed a letter of intent with LP Building Solutions (LP) outlining plans to enter a long-term supply agreement for sustainably sourced wood fiber to support operations at USAB’s planned Texas Renewable Fuels (TRF) biorefinery in Bon Wier, Tex. The advanced biorefinery will require raw wood feedstocks for the production of renewable fuel. Once finalized, the agreement would provide for up to 2.2 million tons of woody biomass annually for an initial term of 20 years.
This advanced biorefinery will convert forest thinnings into sustainable aviation fuel (SAF) and other renewable fuels. LP is expected to serve as the exclusive procurement agent for TRF under the future agreement,.
“This agreement is a key milestone for our Bon Wier project,” says USA BioEnergy CEO Nick Andrews. “Long-term, bankable feedstock supply is essential to securing favorable project financing. Working with a trusted, reputable company like LP helps us align the term of our supply agreement with our debt, which is critical to lowering our cost of capital. This collaboration underscores the strength of our commercial partnerships and our commitment to delivering sustainable, American-made fuels.”
In January, USABE closed on the acquisition of over 1,600 acres of land in East Texas for its new $2.8 billion advanced biorefinery, designed to convert wood waste into sustainable, net-zero SAF. The planned greenfield facility is currently in detailed design and engineering and aims to address airlines’ growing demand for SAF, and has secured a 20-year offtake agreement with Southwest Airlines.
After the engineering and design process is completed, construction of the biorefinery is expected to take approximately two years, followed by a six- to eight-month commissioning period. The facility will annually convert one million tons of sustainably sourced woody waste into 65 million gallons of premium net-zero transportation fuel, including sustainable aviation fuel and renewable naphtha. The plant will also capture and sequester over 50 million metric tons of carbon dioxide over the biorefinery’s lifetime.
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