DG Fuels plans to develop SAF project in Moorhead, Minnesota

DG Fuels, a U.S.-owned sustainable aviation fuel (SAF) company, announced Oct. 30 that it plans to develop a project in Moorhead, Minnesota.

According to DG Fuels, the proposed project will produce 193 million gallons per year of SAF.

Production is expected to begin in 2030.

DG Fuels’ manufacturing process uses cellulosic biomass in the form of lower-value agricultural byproducts such as corn stover and timber waste 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 DG Fuels CEO Michael Darcy.

The Clay County, Minnesota, region, known for its productive farmland and abundant timber resources, stands to generate millions of dollars per year in additional on-farm income by converting corn stover and timber waste into high-value SAF, DG Fuels stated.

If it comes to fruition, the project is expected provide 650 jobs, offer a local community coordinator, and include a comprehensive multimillion-dollar community-benefits package that will directly enhance the county’s infrastructure and local strategic plan, the company said.

“Adding value to our region’s agricultural economy is a top priority and fits perfectly with Moorhead’s development strategy,” said Mayor Shelly Carlson.

The DG Fuels SAF facility will cost over $5 billion and is expected to be constructed over a four-year period.

“The DG Fuels facility is expected to deliver over $50 billion of economic impact across the state over the next 30 years,” Darcy said.

Peter Frosch, president and CEO of the Greater MSP Partnership, which created and leads the Minnesota SAF Hub, said, “Our initial milestone is to deliver 100 million gallons of SAF to MSP International Airport by 2030. The DG Fuels project would produce 193 million gallons of SAF utilizing agricultural and forest waste products—nearly double our 2030 goal. Greater MSP is excited to work with DG Fuels to deliver on this historic investment in the state of Minnesota, which will create hundreds of good jobs across the state and billions of dollars in new economic activity while creating a climate-change solution the country and world urgently need.”