Texas Governor Greg Abbott announced on February 15 that a $1.7 billion biofuel plant is coming to Bon Wier in East Texas’ Newton County. The facility will produce green energy solutions by processing wood pulp waste into fuel. Arizona-based USA BioEnergy, through its subsidiary company, Texas Renewable Funds, will build the plant. The project is expected to finish in 2025, but no groundbreaking date has yet been set.
The plant will generate up to 34 million gallons of transportation fuel from the waste of 1 million tons of wood products. The facility will produce sustainable aviation fuel, biodiesel, and renewable naphtha, which is frequently used in camping stoves, cigarette lighters, and the production of plastic.
“We are excited that USA BioEnergy has chosen East Texas as the home for their new advanced biorefinery,” said Abbott in a press release. “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. I look forward to our continued work together as we create an even brighter future for the entire Lone Star State.”
The project will initially create 142 jobs in the region, and a planned future expansion will double the output and provide even more jobs in the booming green energy sector.
According to a fact sheet provided by the Environmental Defense Fund, Texas is one of the leading states for clean energy production due to a number of factors, most significantly the ability to affordably produce biofuels and renewable energy in the state.
USA BioEnergy CEO Nick Andrews said that numerous local agencies in Newton assisted the renewable fuels development group in securing and establishing the plans to build the plant.
“USA BioEnergy performed an extensive site search and analysis to identify the best location for our project,” said Nick Andrews, USA BioEnergy CEO. “State and local incentives then became the key component of our decision and we’re excited to select Bon Wier.”
Renewable diesel is a growing industry in the U.S., with current estimates placing the total production of the fuel to hit approximately 5 billion gallons by 2024. Current production hovers around 1 billion gallons annually, according to the U.S. Energy Information Agency.
The Agency noted that one of the most significant impediments to U.S. biodiesel production is the lack of fats, oils, and feedstock to produce the fuel. Soybean, corn, and other similar crops are commonly used to make biodiesel, which causes the prices for these goods to rise, impacting consumers.
The use of wood waste helps prevent the negative impact on consumer prices while taking advantage of a product that otherwise contributes to landfills and harmful greenhouse gas production.
Newton County Judge Kenneth Weeks said the project will bring full-time employment to rural East Texas and create numerous jobs and significant economic activity during construction.
“The announcement of this $1.7 billion project brings news of 142 new jobs at completion, an estimated 585 direct construction and related workers’ jobs during construction, with $877 million in direct revenues for construction related companies,” said Weeks in the press release. “In total, the project supports an estimated $1.2 billion in gross area product or economic activity during construction. Texas Renewable Fuels will bring substantial improvement in the quality of life for the residents of Newton County.”