DG Fuels has chosen Johnson Matthey and bp’s co-developed Fischer Tropsch (FT) CANS™ technology for its first sustainable aviation fuel (SAF) plant, according to a news release.
Located in Louisiana, USA, it would be the largest announced FT SAF production facility in the world, with a planned capacity of 13,000 barrels per day – capable, after blending to 50%, of producing enough SAF for more than 30,000 transatlantic flights annually.
The project previously planned to produce 120 million gallons at the facility, but today’s press release notes that the proposed $4 billion plant is planned to produce 600,000 metric tons (MT) of SAF per year when fully operational — or 159 million gallons — and would be the largest announced SAF production plant using a non-HEFA route.
DG Fuels has already secured offtake agreements with Delta Air Lines and Air France-KLM, and has a strategic partnership with Airbus to scale up the use of SAF globally.
DG Fuels is planning 10 more SAF production plants across the United States. These would be modelled on the Louisiana plant with JM and bp as the partners of choice for these facilities.
The fuel at the Louisiana plant is expected to be produced from waste biomass. DG Fuels is projected to purchase around $120 million of sugar cane waste annually, a third of which is planned to be purchased from St. James Parish farmers. JM and bp’s FT CANS technology converts the synthesis gas derived from this biomass to synthetic crude, which is then further processed to produce the synthetic kerosene that is then blended with conventional jet fuel to produce SAF.
In July 2023, DG Fuels announced the closing of investment transactions with aviner & co., inc, Chishima Real Estate Co, and an undisclosed investor. DG Fuels expects the $30m capital raise to fund the project until FID, which is expected in early 2024.
In September 2023, DG Fuels announced a partnership with Airbus in support of DG Fuels’ goal of launching the equity process and reaching FID. Airbus and DG Fuels have agreed for a portion of the production of the first plant to benefit Airbus’ customers.
In November 2023, DG Fuels announced Air France-KLM has made an investment in the facility. Air France-KLM acquired an option to purchase up to 25 million gallons / 75 000 tons of SAF annually over a multi-year period beginning in 2029, in addition to the long-term offtake contract announced by Air France-KLM and DG Fuels in 2022.
