USA Bioenergy signs feedstock agreement with LP Building
USA Bioenergy announced that it has signed a letter of intent with American building manufacturer Louisiana-Pacific (LP) for a long-term supply agreement for wood fiber at its planned Texas Renewable Fuels biorefinery at Bon Weir, Texas.
Once finalised, the agreement would provide for up to 2.2m tons of woody biomass annually for an initial term of 20 years which will be converted to sustainable aviation fuel (SAF) and other byproducts.
“This agreement is a key milestone for our Bon Wier project,” said USA BioEnergy CEO Nick Andrews. “Long-term, bankable feedstock supply is essential to securing favourable project financing. Working with a trusted, reputable company like LP helps us align the term of our supply agreement with our debt, which is critical to lowering our cost of capital.”
LP has more five decades of experience in forestry and timber operations in East Texas. The company is expected to serve as the exclusive procurement agent for USA Bioenergy under the future agreement, leveraging its regional expertise to source feedstock responsibly and sustainably.
“LP is proud to bring our deep roots in sustainable forestry to support the Texas Renewable Fuels project,” said LP natural resources manager Steven Meadows. “Our long-standing commitment to responsible resource management is well aligned with USA BioEnergy’s vision for sustainable fuel production. We look forward to advancing this effort, which benefits the regional economy, promotes environmental stewardship, and advances the clean fuels industry.”
Earlier in January, USA BioEnergy announced that it has secured 1,600+ acres of land in Eastern Texas to develop its $2.8bn refinery to produce SAF from wood waste. USA BioEnergy launched a subsidiary Texas Renewable Fuels in 2022 to develop a facility to convert wood waste into transportation fuel including SAF, renewable diesel and renewable naphtha annually.
If you want to learn more about USA BioEnergy’s plans, read our interview with founder Nick Andrews.