Incentives draw new $820 million SAF project to Illinois

Illinois Gov. J.B. Pritzker, Avina Clean Hydrogen and the Illinois Department of Commerce and Economic Opportunity announced Dec. 19 the selection of Southwest Illinois as the location for Avina Clean Hydrogen’s $820 million investment for a sustainable aviation fuel (SAF) project.

The investment will enable Avina Clean Hydrogen to develop its facility to produce SAF, helping meet Illinois’ clean-energy goals and supporting the state’s growing clean-energy economy.

“Illinois is proud to be a leader in the nation’s clean-energy industry, and we’ve seen record growth over the past few years as companies choose to relocate to or expand across our state,” Pritzker said. “Avina Clean Hydrogen’s new SAF production facility will support our ambitious goals for a clean-energy economy by substantially reducing carbon emissions and creating new jobs for Southwest Illinois.”

Vishal Shah, the founder and CEO of Avina Clean Hydrogen, said, “Our facility will take advantage of existing rail and pipeline infrastructure for efficient delivery of ASTM-certified fuel to Chicago O’Hare and other major airports around the Midwest region. We are excited to bring jobs, investment and clean-energy innovation to Illinois while supporting the aviation industry’s decarbonization efforts.”

This investment will support the development of a state-of-the-art facility capable of producing up to 120 million gallons of SAF annually using KBR’s alcohol-to-jet technology.

Over its lifespan, the project is anticipated to prevent an estimated 25 million metric tons of carbon emissions annually in aviation, with the project estimated to create at least 150 full-time jobs in Illinois along with 1,000 construction jobs.

This milestone marks a major step in advancing the clean-energy transition within Illinois, the governor’s office said.

“Clean-energy production and advanced manufacturing are two key growth sectors in Illinois,” said DCEO Director Kristin Richards. “This state-of-the-art facility will provide job opportunities for hardworking Illinoisans, and aligns with the state’s continued efforts to create a cleaner economic ecosystem.”

With its commitment to investing $820 million and creating 157 jobs, Avina Clean Hydrogen will receive Reimagining Energy and Vehicles incentives from DCEO.

REV provides competitive incentives for manufacturers across the electric-vehicle and renewables sectors to expand in or move to Illinois.

A link to the executed REV agreement can be found here.

The state has a tax credit for SAF that incentivizes its sale at Illinois-based airports.