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.
Latest news
Bandit Announces Major Expansions
Bandit Industries plans to build three new production facilities and expand an existing plant in 2022. That is in addition to four building expansions in 2021, one that is completed and three more that are currently under construction. When all are completed, Bandit’s manufacturing facilities will increase…
Drax Supports United Way’s Latest Efforts
Drax Biomass donated $5,000 and essential water supplies to help evacuees in Northeastern Louisiana who were impacted by Hurricane Ida. The funds and supplies went to hurricane relief efforts driven by United Way of northeast Louisiana part of their “Embrace Louisiana” relief project.
Wood Pellet Mill In Adel Getting Closer
A proposed 450,000 metric tons per year industrial wood pellet mill to be built in Adel, Ga. is still an active project with nearly all of the pieces—including financing, equipment selection and air quality permit—in place, and construction expected to begin at mid-year 2022, according to Craig Whitlock, founder and…
Forest Service Backs Out Of Awarding Phase 2 Arizona Forests Restoration Contract; Uncertainties Persist For Novo Power
Anxious bidders for the Phase 2 contract that’s part of the federal 4 Forests Restoration Initiative (4FRI) seeking to treat and improve forest health conditions on more than 2.5 million acres across four Arizona national forests were told to wait a while longer after U.S. Forest Service (FS) officials abruptly…
Find Us On Social
Subscribe to Our Newsletter
Wood Bioenergy News Online hits the inboxes of subscribers in the wood-to-energy sectors.
Subscribe/Renew
Wood Bioenergy is published and delivered worldwide 6 times per year. Free to qualified readers in the U.S. Subscribers outside the U.S. are asked to pay a small fee.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.