Strategic Biofuelsa leader in the development of renewable fuel plants with a negative carbon footprint, announced on February 17 that Louisiana Governor John Bel Edwards had been awarded the company’s Louisiana Green Fuels project a US$250 million bond grant. The bonds will form an integral part of debt financing for the construction costs of the project and will be sold on the private market at the final investment decision in early 2023 when construction begins.
“We are pleased with the rapid progress on construction of Strategic Biofuel’s Louisiana Green Fuels project in Caldwell Parish,” said Edwards. “The project’s negative carbon footprint fuel production continues to keep Louisiana at the forefront of innovation in the renewable fuels industry. Additionally, it demonstrates what is practical and achievable to achieve our Climate Action Task Force’s goal of net-zero greenhouse gas emissions by 2050.”
As the first renewable diesel project in North America to achieve “negative” carbon emissions, LGF will cost-effectively and sustainably convert forest waste feedstock into cleaner-burning renewable diesel that, once operational, will produce approximately 34 million gallons of renewable fuel per year. The Company’s location in Northern Louisiana combines the right geology, an abundance of forest residues from managed, sustainable forests, and a favorable Louisiana legal and regulatory environment. Together, these factors reduce the risk of the project while also serving as a blueprint for the energy industry as it works toward net-zero carbon. the successful sequestration test drill program completed in 2021 confirmed the plant’s ability to achieve deep carbon negativity.
For the 2021 private activity bond allotment year, LGF received $250 million of the $393 million available from the state. The award entitles the issuance of tax-exempt bonds to fund the project that qualifies for receipt because it is a waste-to-fuels project. Although the state of Louisiana authorizes the issuance of the bonds, they are not guaranteed by the state and no taxpayers’ money is involved. To date, LGF has received a total of $450 million in bonds for plant construction.
“We’re going beyond net zero by taking a revolutionary step further and achieving a deeply negative carbon footprint, right here in the state of Louisiana,” said Paul Schubert, CEO of Strategic Biofuels. “The continued support from the state and Governor Edwards reflects the confidence they have in our project and team. The momentum of our LGF project is exciting, and we look forward to bringing together industry and agriculture in northern Louisiana to create a brighter future of economic growth and opportunity.”
Strategic Biofuels plans that the LGF plant will have a major economic impact on Caldwell Parish and the surrounding region. Upon completion, the LGF facility is expected to create approximately 146 direct local jobs with an average annual income of $68,000 per year excluding benefits; while four to five times as many indirect employment opportunities are expected. As a result, the facility should significantly improve the local quality of life in the seventh poorest US congressional district (LA-5) and the tenth poorest community in Louisiana, which has an average household income of just $32,000 per year.
For more information about Strategic Biofuels or the Louisiana Green Fuels project, visit: www.strategicbiofuels.com.