Nick Andrews, President and CEO of the Scottsdale, Arizona based USA Bioenergy, announced on Tuesday that the company has signed a landmark deal with the L-P Corporation for a supply of wood to be used in the company's planned operation at Bon Wier.
According to Andrews and a release from LP, once finalized the agreement would provide up to 2.2 million tons of wood biomass for an initial term of 20 years that could not only result in job security for those employed by the proposed USA Bioenergy operation at Bon Wier, but also the logging and timber industry across Southeast Texas and Southwest Louisiana.
Andrews has said the main focus of the plant will be to produce sustainable aviation fuel, commonly known as "SAF" or bio-jetfuel for the airline industry.
A spokesman for LP said, " We look forward to advancing this effort, which benefits the regional economy, promotes environmental stewardship, and advances the clean fuels industry.”
“This agreement is a key milestone for our Bon Wier project,” said USA BioEnergy CEO Nick Andrews. “Long-term, bankable feedstock supply is essential to securing favorable project financing. Working with a trusted, reputable company like LP helps us align the term of our supply agreement with our debt, which is critical to lowering our cost of capital. This collaboration underscores the strength of our commercial partnerships and our commitment to delivering sustainable, American-made fuels.”
In January, USABE closed on the acquisition of over 1,600 acres of land and the buildings that were once a large plywood mill in Bon Wier, which was once owned by the Louisiana Pacific Corporation located on Farm to Market Road 363, just west of US Highway 190. The plywood mill closed in August of 2002 and has been dark since that time.
Word is that a contract with Southwest Airlines of Dallas and financing is in place, painting a bright future for the biochemical company and estimates are that the company will spend $1.7 billion to build the facility resulting in 500 jobs in the construction phase and around 140 permanent jobs once the facility is up and running.
The company had already announced last year, the signing of a agreement with Honeywelll for equipment and process control.
First word of the project came in May of 2022, when then Newton County Judge Kenneth Weeks announced that he and others were involved with negotiations to bring the plant to Newton County.
According to previous estimates it is anticipated that engineering and more detailed planning will take place before the end of the year.
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