12-01-2025

USA BioEnergy announces land purchase for SAF refinery

USA BioEnergy today announced it has closed on the acquisition of 1,600+ acres of land in East Texas for its new $2.8 billion advanced biorefinery, designed to convert wood waste into sustainable, net-zero aviation fuel. The landmark SAF facility already secured a 20-year offtake agreement with Southwest Airlines and is at the forefront of advancing ultra-low-carbon fuel, which is much needed in the future of aviation.

USABE’s planned $2.8 billion greenfield facility in Bon Weir, Texas, is currently in detailed design and engineering and aims to address airlines’ growing demand for SAF by converting sustainably sourced forest thinnings into sustainable aviation fuel. USA BioEnergy signed a 20-year offtake agreement with Southwest Airlines Co. (NYSE:LUV) under which Southwest may purchase up to 680 million gallons of neat – or unblended – SAF. Once blended with conventional jet fuel, the SAF could produce the equivalent of 2.59 billion gallons of net-zero[i] fuel and avoid 30 million metric tons of CO2 over the offtake agreement term.  According to USABE calculations this will enable approximately 112,000 short (less than three hours) or 7,000 long haul (more than 10 hours) net-zero airline flights per year.

“This advanced-fuels facility development milestone underscores USA BioEnergy’s commitment to the future of aviation and energy security.  It bolsters our goal of being the world’s leader in advanced fuels,” said Nick Andrews, CEO of USA BioEnergy. “We also appreciate the opportunity to create good-paying jobs in Newton County, Texas, which has one of the lowest per capita incomes in the state of Texas. We are proud this project is a win-win-win for the area, the industry and our business objectives.”

The initial plant footprint is approximately 300 acres, providing ample room for growth and plant expansion. After the engineering and design process concludes, construction of the biorefinery is expected to take about two years, followed by a six-to-eight-month commissioning period.  The state-of-the-art facility will annually convert one million tons of sustainably sourced forest thinnings into 65 million gallons of premium net-zero transportation fuel, including sustainable aviation fuel and renewable naphtha. The plant will also capture and sequester over 50 million metric tons of carbon dioxide over the biorefinery’s lifetime.

The project is receiving support from state, county and federal credits and tax incentives totalling approximately $150 million. Local supporting organisations include the Texas Forest Country Partnership, Texas Forestry Association, the City of Newton, Newton County, the Newton Independent School District, Jasper County, the Sabine River Authority (SRA), and the Texas Economic Development and Tourism Office of the Governor.