Start-Up that uses Wood Waste to Produce Gasoline Plans $800 Million Clean Energy Facility in Louisiana

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Published June 15, 2022

Start-Up that uses Wood Waste to Produce Gasoline Plans $800 Million Clean Energy Facility in Louisiana

Louisiana – The Louisiana Office of the Governor announced on June 14, 2022 that Arbor Renewable Gas LLC, a Houston-based company founded in 2019 that produces renewable gasoline and green hydrogen from wood waste and forest residue, is evaluating West Baton Rouge Parish for a planned $800 million manufacturing and distribution facility that will use carbon capture and sequestration emissions-reduction technology.

The new facility, known as Magnolia Renewable Fuels LLC, would produce renewable gasoline from wood waste biomass sourced from Louisiana and Mississippi timber operations. The project would generate 32 new direct jobs with annual salaries averaging $99,000 plus benefits. According to Louisiana Economic Development, the project would also support at least 110 indirect jobs, totaling 142 new jobs in Louisiana’s Capital Region. At peak construction, the company estimates that the facility’s development will generate up to 880 construction jobs.

“Arbor Gas’ planned renewable gasoline production facility in West Baton Rouge Parish is further evidence that our all-of-the-above approach to energy is attracting the right kind of investment to Louisiana,” Louisiana Governor John Bel Edwards said. “The company’s commitment to a lower-carbon future aligns with Louisiana’s commitment to Net Zero emissions by 2050. Incorporating Louisiana agribusiness byproducts into its energy production process broadens this project’s potential economic impact to a number of rural communities. We welcome this forward-thinking energy company to Louisiana and look forward to seeing the project progress.”

The company intends to build a greenfield facility at the Port Allen Rail Terminal, which has railroad and highway access and is close to timber operations. Magnolia will obtain pre-commercial thinnings of southern yellow pine, a byproduct of routine forest management operations. Arbor Gas recently announced a project similar to this in Beaumont, Texas.

“The level of support and engagement we’ve received from the folks at the Baton Rouge Area Chamber, West Baton Rouge Chamber, the local community and officials, and the state has been incredible,” Arbor Gas CEO Timothy Vail said. “At full capacity, this plant will have a production capacity of 2,000 barrels per day of renewable gasoline with the potential for further expansion. The product would be blended with conventional gasoline to achieve renewable fuel standards in the U.S. and Europe.”

Initial plans call for the installation of two product trains, with future expansions possible. Arbor Gas estimates that each train will capture approximately 275,000 tons of CO2 per year. The first train is expected to be operational by the end of 2025, with construction expected to begin in late 2023.

“The Baton Rouge Area is rising up as the global epicenter for renewable and transitional energy investments,” said Adam Knapp, Baton Rouge Area Chamber president and CEO. “Since 2020, the Capital Region has seen over $18.5 billion in announced or considered investments. The industrial sector is moving toward net zero carbon emissions in manufacturing. We applaud Arbor Gas as the latest to recognize the unique advantages for energy transition business development in Louisiana and the Capital Region.”

The State of Louisiana offered the Arbor Gas project in West Baton Rouge Parish a competitive incentive package that included the services of LED FastStart, the No. 1 ranked statewide workforce development program in the United States for the past 12 years. In addition, the company is expected to take advantage of the state’s Quality Jobs and Industrial Tax Exemption programs.

“Renewable energy is a key component in reaching environmental protection targets, and we look forward to welcoming the latest renewable fuel investment to our community,” West Baton Rouge Parish President Riley Berthelot, Jr. said. “Our goal is for West Baton Rouge to be one the energy powerhouses of the world, and we will continue to keep growing in this vital industry that is important to our economy. We are proud of the progress we have made to deliver clean, reliable energy to Louisiana, and we’re excited to ‘rethink’ energy to deliver progressive solutions into a rapidly growing market.”