Nebraska SAF Plant to Use Corn Stover

LINCOLN, Neb. (DTN) -- A new sustainable aviation fuel plant is expected to launch production in southwest Nebraska in 2030, as part of plans by a Washington, D.C.-based company announced on Wednesday to build a biomass-based SAF plant in Phelps County.

DG Fuels said in a news release that once construction is complete the plant would produce about 193 million gallons of "zero or low-CO2 lifecycle emissions" SAF per year using agricultural biomass such as corn stover.

Although the company provided no financial details about the costs of the projects, both the Omaha World Herald and Lincoln Journal Star reported construction to run around $5 billion.

The Phelps County, Nebraska, region is known for its "consistently productive farmland and abundant yields," DG said in its announcement.

The company said the Phelps County region "stands to generate millions of dollars per year in additional on-farm income" by converting specifically corn stover into "high-value" SAF.

"The partnership will provide 650 quality careers, offset aquifer demand by transporting water required for production via rail, offer a local community coordinator and include a comprehensive multi-million-dollar community benefits package that will directly enhance the county's infrastructure, quality of life and local strategic plan," DG said in a news release.

According to the USDA National Agricultural Statistics Service, Phelps County was the second-largest corn-producing county in Nebraska in 2022, as farmers churned out 38.3 million bushels.

DG Fuels uses the Fischer-Tropsch process as a basis for its technology, according to DG's website, which is used to produce synthetic fuels.

DG Fuels' manufacturing process uses cellulosic biomass in the form of lower-value agricultural by-products such as corn stover. It also incorporates various forms of clean hydrogen feedstock to produce near-zero carbon fuel.

As agriculture continues to struggle with lower crop prices and other headwinds, Phelps County officials said in a statement the project would help in the long term.

"Adding value to our region's farm economy is a top priority and fits perfectly within Phelps County's wheelhouse," said Ron Tillery, executive director of the Phelps County Development Corporation.

Shane Westcott, president of the development corporation, said his organization is focused on bringing more economic activity to the rural county.

"Our relationship with DG Fuels fully aligns with PCDC's targeted industry strategy while protecting our county's most valuable resources: the next generation of family farmers and our aquifer," he said.

"DG Fuels' willingness to listen and address our most critical interests exemplifies the quality of activity we hope to attract to our region. We're open for business."

In April 2024, DG announced it was planning to build a $4 billion "clean-energy complex" in St. James Parish, Louisiana. The company announced a partnership with BP.

That plant is expected to be the largest Fischer Tropsch SAF plant in the world with a planned production capacity of 13,000 barrels per day. DG said during that announcement it had secured SAF offtake agreements with Delta Airlines and Air France-KLM, as well as a partnership with Airbus.

"DG Fuels' baseline process differs from other systems by having little or no environmental emissions either to the atmosphere or waters while at the same time providing significant economic value to the agricultural communities and farmers that we partner with," DG Fuels CEO Michael C. Darcy said in a statement on Wednesday.

Nebraska Republican Gov. Jim Pillen touted the potential of the SAF project to "deliver nearly $55 billion" in economic benefits across the state in the next 30 years.

Todd Neeley can be reached at todd.neeley@dtn.com

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