DG Fuels, a SAF developer, has closed investment transactions with two Japanese companies, according to a news release.
With the investments in DGF made by aviner & co., inc., Chishima Real Estate Co., Ltd. (Chishima) and an undisclosed investor, DGF has now exceeded its minimum investment target as part of its final round of parent level development capital needed to fund the remaining expected expenses required to reach FID, including the ongoing FEL 3 and related expenses.
ReSource previously reported that DGF was working with Stephens and Guggenheim as investment bankers to advance a capital raise.
The relatively modest balance of the maximum $30m capital raise is expected to fund in the next few months. DGF currently expects that FID on its proposed $4.2bn, 180 million gallon per year SAF facility in Louisiana to occur in early 2024.
The Louisiana SAF facility will be the template for multiple other such facilities to be built across North America, Europe and Asia.
Yoshiyuki Shibakawa, representative director of Chishima said, “We believe the SAF to be produced by DG Fuels makes a significant contribution to reducing CO2 emissions in the aviation industry. Through its partnership with DG Fuels, we will contribute to the decarbonization of the aviation industry.”
Aviner, which is active in aircraft management and renewables, has worked closely with DGF as its strategic partner and representative in Japan and broader Asia to market DGF’s SAF product to off-takers in the Asia Pacific region as well as jointly studying potential production of SAF by DGF in the region.
“SAF sits right in between aviation and energy which are the prime focus of ours. We have strong belief in the DGF team and are excited to be part of this project. SAF produced by DGF’s high carbon conversion efficiency technology uses woody biomass feedstock which will not face limitation in feedstock supply and we expect DGF’s technology and know-how can be replicated in various locations around the world.” said Hideyuki Yamanaka, CEO of aviner.
“The DG Fuels facility will produce 180 million gallons of zero carbon emissions SAF,” said Michael C. Darcy, CEO of DG Fuels, The facility itself has a very minor atmospheric emissions and zero water discharge to the local environment and will bring 600 new permanent operating jobs and up to 2,100 construction jobs over three years to the local community.”
“We have worked diligently with our investors in implementing this long-term relationship to mutually focus on decarbonizing the aviation sector in a responsible manner,” said Christopher J. Chaput, president and CFO of DG Fuels. “The DG Fuels SAF product relies on no feedstock that would negatively impact the food supply and our highly efficient production process allows us to profitably sell SAF to airlines at attractive prices.”
