JX joins Sumitomo to invest in Louisiana Green Fuels SAF plant

JX Nippon Oil & Gas Exploration Corporation and Sumitomo Corporation announced the signing of agreements to invest in Strategic Biofuels’ Louisiana Green Fuels BECCS project.

The two companies said they will set up a consortium ‘Magnolia Sustainable Energy Partners’ to manage and make investment in the project.

The plant, operated by US-based Strategic Biofuels, will have the production capacity of 32m gallons per annum and is scheduled to begin commercial operations in 2029.

The project will convert woody biomass waste into synthesis gas, and then synthesise and upgrade it into SAF and Renewable Naphtha.

The project will be powered by a biomass-fired power plant using sawmill and other woody biomass waste attached with carbon dioxide capture and storage facility to address CO2 emitted from the project.

Earlier in February, Sumitomo, through its subsidiary Sumitomo Corporation of Americas (SCOA) entered into Joint Development Agreement (JDA) with Strategic Biofuels on the project.

Originally planned to produce renewable diesel and naphtha, Strategic Biofuels pivoted the project towards SAF following investment from SCOA.

Strategic Biofuels announced in October 2023 that they hired Hunt, Guillot & Associates (HGA) to manage their Louisiana Green Fuels project including biorefinery and a power plant with carbon capture and storage (BECCS) in Caldwell Parish, Louisiana.

HGA will help design and develop the project until a final investment decision is made.

However, the project is still waiting for permits related to storing CO2 underground from the Louisiana Department of Natural Resources.