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,.
“LP is proud to bring our deep roots in sustainable forestry to support the Texas Renewable Fuels project,” says LP Natural Resources Manager Steven Meadows. “Our long-standing commitment to responsible resource management is well aligned with USA BioEnergy’s vision for sustainable fuel production. We look forward to advancing this effort, which benefits the regional economy, promotes environmental stewardship, and advances the clean fuels industry.”
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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