DG Fuels plans to build SAF plant in Nebraska

DG Fuels’ manufacturing process uses cellulosic biomass such as corn stover as its carbon feedstock.

DG Fuels, a U.S.-owned sustainable aviation fuel (SAF) company, in cooperation with the Nebraska BioEconomy, has selected Phelps County, Nebraska, for its first Midwest production facility, DG Fuels announced Aug. 7.

The plant is being scaled to produce 193 million gallons of SAF per year.

Production is expected to begin in 2030.

DG Fuels’ manufacturing process uses cellulosic biomass such as corn stover as its carbon feedstock.

It also incorporates various forms of clean-hydrogen feedstock to produce near-zero carbon fuel, according to the company.

“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,” said CEO Michael Darcy.

According to DG Fuels, the Phelps County, Nebraska, region, known for its consistently productive farmland and abundant yields, stands to generate millions of dollars per year in additional on-farm income by converting corn stover into high-value SAF.

The partnership will provide 650 careers, offset aquifer demand by transporting water required for production via rail, offer a local community coordinator, and include a comprehensive multimillion-dollar community benefits package that will directly enhance the county’s infrastructure, quality of life and local strategic plan, the company added.

“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 Corp.

“The Nebraska BioEconomy strategic plan focuses on delivering value at every level to Nebraskans, our aquifer, and the next seven generations who will call our great state home,” said Gov. Jim Pillen. “This project is expected to deliver nearly $55 billion of economic impact across the state over the next 30 years.

Julie Bushell, who leads the Nebraska BioEconomy initiative, added, “This project sets the tone for the types of partnerships Nebraska can and will continue to pursue.”

PCDC President Shane Westcott said, “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. 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.”