Minnesota could be home to one of North America’s largest sustainable aviation fuel hubs with DG Fuels, a Washington, D.C. energy company, vowing to build a US $5 billion facility in Moorehead, close to the state’s border with North Dakota.
The facility, which expects to start production in 2030, will convert agriculture and timber waste into jet fuel, according to a statement from Greater MSP, a Twin Cities regional development organisation.
“We not only want to lead the world in de-carbonizing air travel at Minnesota-St. Paul International Airport. But we want to produce that SAF in Minnesota.”
, Peter Frosch, Greater MSP CEO – the Twin-Cities regional development organisation.
Mr Frosch said the selection of Moorhead was evidence of the concerted push from the Minnesota SAF Hub—which includes government, universities, nonprofits, and companies, including Bank of America and Delta Air Lines—to ramp up SAF production in Minnesota.
The project is also a win for Moorhead.
“With the largest shovel-ready industrial site in Minnesota, we are excited and prepared to compete on the national stage for this economic development opportunity,” said Moorhead Mayor Shelly Carlson.
While SAF can be produced from biomass streams, including corn stover, industry experts also consider perennial crops, such as camelina and other oilseeds, as possible sources of feedstock.
“We have a diverse array of feedstocks [in Minnesota],” said Andrea Vaubel, deputy commissioner at the Minnesota Department of Agriculture.“We’re thrilled for the farmers in the Red River Valley.”
DG Fuels did not respond to an interview request from the local Star Tribute, but according to a company release, the facility will produce 193 million gallons of SAF per year and take four years to construct. The company says it expects the investment will produce $50 billion in economic activity for the state over the next three decades.
Industry officials say Minnesota has worked to position itself as the SAF-friendly state. In 2023, Governor Tim Walz, Vice President Kamala Harris’s running mate, and the Legislature passed a tax credit awarding a company $1.50 for every gallon of SAF produced.
The US is looking to ramp up production of SAF over the coming years.
In 2023, the U.S. produced fewer than 25 million gallons of SAF. However, the production of sustainable fuel is expected to ramp up. Several airlines, including Delta, have publicly committed to dropping their carbon footprint. Researchers estimate air travel contributes just below 3% annually to global greenhouse gases.
Earlier this year, DG Fuels announced it is building a 180 million-gallon-a-year plant in Louisiana. That facility will convert waste from sugar cane to SAF. In September, the first SAF-powered commercial jet from MSP completed a flight to LaGuardia Airport in New York.
- To learn more about the push towards sustainable aviation fuels, and the role that wood waste can play in decarbonising aviation and global shipping, click here for Wood Central’s special feature.
