US State of Texas Governor Greg Abbott announced Tuesday a new $1.7 billion biorefinery will be built in the East Texas town of Bon Wier to produce 34 million gallons of transportation fuel per year.

Texas Renewable Funds, a subsidiary of Arizona-based USA BioEnergy, will convert 1 million tonnes of wood waste annually into biofuels, including sustainable aviation fuel (SAF), renewable diesel, and renewable naphtha.

The plant will also capture about 50 million tonnes of carbon dioxide in its lifetime, and will eventually double its production capacity to 68 million gallons per year.

"This investment will further cement Texas as an innovative energy leader and will bring unprecedented economic opportunities to Bon Weir and Newton County. Thank you to USA BioEnergy for selecting Newton County for this incredible project and I appreciate the hard work of our local and state partners to secure this investment,” Governor Abbott said.

In its own release, USA BioEnergy said it has secured fuel offtake agreements with a major trading and logistics company and one of the world’s premier airlines, which it will announce in the coming months.

“The fuels produced using CCS will have at least 3 times greater reduction in GHG emissions than fuels produced using other types of feedstock. And there is vastly more feedstock available for expansion of this technology than there is for other renewable fuel production processes,” said Robert Freerks, vice president at USA BioEnergy.

The company said it received $150 million in state and local incentives to offset the cost of renewable fuels, which helped determine the location of the biorefinery. Project completion is expected in late 2025.

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