DG Fuels to launch SAF plant in Minnesota (U.S.), converting biomass into high-value fuel
- New $5-B facility to produce 193 MMgal of low-carbon fuel annually
- Boosting Minnesota’s economy and creating 650 jobs
DG Fuels, a U.S.-owned sustainable aviation fuel (SAF) company, in cooperation with the Minnesota EDC and The Minnesota SAF Hub, has selected the city of Moorhead, located in Clay County, Minnesota, for its new production facility serving the Great Lakes region.
The plant will produce 193 MMgal of zero- or low-carbon dioxide (CO2) lifecycle emissions SAF per year and will meet ASTM fuel standards. Production is expected to begin in 2030.
DG Fuels’ manufacturing process uses cellulosic biomass in the form of lower-value agricultural byproducts such as corn stover and timber waste as its carbon feedstock. It also incorporates various forms of clean hydrogen feedstock to produce near-zero carbon fuel.
“DG Fuels’ baseline process differs from other systems by having little or no environmental emissions either to the atmosphere or waters while at the same time providing significant economic value to the agricultural communities and farmers that we partner with,” said Michael C. Darcy, Chief Executive Officer of DG Fuels.
The Clay County, Minnesota, region, known for its productive farmland and abundant timber resources, stands to generate millions of dollars per year in additional on-farm income by converting corn stover and timber waste into high-value SAF.
The project will provide 650 quality jobs, offer a local community coordinator, and include a comprehensive multi-million-dollar community benefits package that will directly enhance the county’s infrastructure, quality of life and local strategic plan.
“Adding value to our region’s agricultural economy is a top priority and fits perfectly with Moorhead’s development strategy,” said Mayor Shelly Carlson.
The DG Fuels SAF facility will cost over $5 B and is expected to be constructed over a four-year period. “The DG Fuels facility is expected to deliver > $50 B of economic impact across the state over the next 30 years,” stated Michael C. Darcy.
“The Minnesota SAF Hub is a bold, public-private partnership focused on building the world’s first industrial-scale sustainable aviation fuel economy in Minnesota. Our initial milestone is to deliver 100 million gallons of sustainable aviation fuel to MSP International Airport by 2030. The DG Fuels project announced today would produce 193 million gallons of SAF utilizing agricultural and forest waste products – nearly double our 2030 goal,” said Peter Frosch, President and CEO of the GREATER MSP Partnership, which created and leads the Minnesota SAF Hub.
“GREATER MSP is excited to work with DG Fuels to deliver on this historic investment in the state of Minnesota, which will create hundreds of good jobs across the state and billions of dollars in new economic activity while creating a climate change solution the country and world urgently need,” Frosch said.
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