On June 9, U.S. BioEnergy announced the signing of a memorandum of understanding with LP Building Solutions to establish a 20-year sustainable wood fiber supply agreement to provide raw materials for the company’s advanced biorefinery being built in Bon Wier, Texas.
Under the agreement, once finalized, LP will supply up to 2.2 million tons of wood biomass to the project annually. The biorefinery will convert forest thinnings and other wood waste into sustainable aviation fuel (SAF) and other low-carbon transportation fuels. The project site was finalized earlier this year, with the company having acquired over 1,600 acres of land locally and planning a total investment of $2.8 billion.
LP, which has over 50 years of experience in forestry and wood operations in eastern Texas, will serve as the project’s exclusive procurement agent, responsible for sourcing raw materials in a responsible and sustainable manner. All biomass procurement will strictly adhere to environmental standards and undergo third-party independent audit certification.
Steven Meadows, LP’s Natural Resources Manager, stated: “Our experience in sustainable forestry will facilitate the smooth progress of this project and also promote regional economic development and ecological management.”
Nick Andrews, CEO of the U.S. Bioenergy Company, emphasized: “A long-term stable raw material supply is key to the success of project financing. Collaborating with LP helps us reduce capital costs and demonstrates the company’s firm commitment to sustainable fuel production.”
The project is currently in the engineering design phase. Once completed, it will convert 1 million tons of wood waste annually into approximately 65 million gallons of net-zero transportation fuel and sequester over 50 million tons of carbon dioxide over its lifecycle. The project has secured approximately $150 million in tax incentives and credit support from various levels of government and has signed a 20-year SAF purchase agreement with Southwest Airlines, providing a solid foundation for future operations.
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