Louisiana Green Fuels has allocated $250 million in private activity bonds

Strategic biofuelsthe leader in the development of carbon-negative renewable fuels plants, announced Feb. 17 that Louisiana Governor John Bel Edwards had awarded the company’s Louisiana Green Fuels project. a bond allocation of $250 million. The bonds will form an integral part of the debt financing of the construction costs of the project and will be sold in the private market during the final investment decision in early 2023 when construction begins.

“We are pleased with the rapid progress toward construction of Strategic Biofuel’s Louisiana Green Fuels project in Caldwell Parish,” Edwards said. “The project’s carbon-negative fuel production continues to keep Louisiana at the forefront of innovation in the renewable fuels industry. Further, it illustrates what is practical and achievable on the path to achieving our Climate Initiatives Task Force’s goal of net-zero greenhouse gas emissions by 2050.”

As the first renewable diesel project in North America to achieve “negative” carbon emissions, LGF will affordably and sustainably convert forestry waste feedstock into cleaner-burning renewable diesel, producing approximately 34 million gallons of renewable fuel per year, once in operation. The company’s location in northern Louisiana combines good geology, an abundance of forest waste from sustainably managed forests with a favorable legislative and regulatory environment in Louisiana. Together, these factors reduce project risk, while serving as a model for the energy industry working towards net zero carbon. the successful sequestration test well program completed in 2021 confirmed the plant’s ability to achieve deep carbon negativity.

For the 2021 Private Activity Bond award year, LGF received $250 million of the $393 million available from the state. The grant gives the right to issue tax-exempt bonds to fund the project, which qualifies to receive them because it is a waste-to-fuel project. Although the state of Louisiana allows the issuance of the bonds, they are not guaranteed by the state and do not involve taxpayers’ money. To date, LGF has received $450 million in total plant construction bond allocations.

“We are going beyond net zero by going further and achieving a deeply negative carbon footprint, right here in the state of Louisiana,” said Paul Schubert, CEO of Strategic Biofuels. “The continued support of the state and Governor Edwards reflects the confidence they have in our project and our team. The momentum of our LGF project is exciting, and we look forward to bringing industry and agriculture together in North Louisiana to create a brighter future filled with economic growth and opportunity.

Strategic Biofuels anticipates that the LGF plant will have a major economic impact on Caldwell Parish and the surrounding region. Once completed, the LGF plant is expected to create approximately 146 direct on-site jobs with an average annual income of $68,000 per year, excluding benefits; while four to five times more indirect employment opportunities are expected. As a result, the plant is expected to significantly improve the local quality of life in the nation’s seventh poorest U.S. congressional district (LA-5) and tenth poorest parish in Louisiana, which has an average household income of just $32,000 per year.

For more information on Strategic Biofuels or the Louisiana Green Fuels Project, visit: www.strategicbiofuels.com.

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