State incentives attract Crysalis Biosciences to invest $240 million in SAF production at Illinois ethanol plant

Photo: Crysalis Biosciences Inc.

Illinois Gov. J.B. Pritzker, Crysalis Biosciences Inc. and the Illinois Department of Commerce and Economic Opportunity announced Sept. 30 a Reimagining Energy and Vehicles in Illinois (REV Illinois) agreement for Crysalis’ $239.5 million investment to develop a sustainable aviation fuel (SAF) plant in Sauget, Illinois.

In early 2023, Crysalis acquired a shuttered 55-million-gallon-per-year (mgy) ethanol plant in Sauget.

A year later, it completed renovations at the plant, equipping it with what the company said is “state-of-the-art technology for future productions.”

In an August press release, Crysalis said it plans to retrofit the plant to produce 30 mgy of SAF and use technology developed at the National Renewable Energy Laboratory to produce 100 percent biobased acetonitrile at the site. Acetonitrile is widely used in the pharmaceutical and lithium-ion battery manufacturing sectors.

In late September, however, the governor’s office said Crysalis plans to produce 5,000 barrels to 10,000 barrels a day of SAF and SAF feedstock at the site in Sauget, which comes to approximately 70 mgy to 140 mgy.

“There is no better state equipped for the sustainable fuel industry than Illinois,” Pritzker said. “With a $239.5 million investment through REV Illinois, Crysalis Biosciences will build a groundbreaking SAF plant right here in our state—advancing our mission to drive economic growth while reducing our carbon footprint. This marks a new era of clean-energy production for Illinois, and we’re just getting started.”

Depending on project size, benefits of the REV Illinois program can last from 20 to 30 years and include provisions to retain income-tax withholding, exemptions on utilities taxes, tax credits, training credits, grants and equipment and capital-cost exemptions.

Local jurisdictions can also provide property-tax abatement for the life of the agreement.

According to the governor’s office, Crysalis chose to locate its biorefinery in Sauget due to the area’s numerous strategic geographic advantages.

Crysalis CEO Sanket Gandhi said Crysalis’ biorefinery is bringing innovative zero-carbon chemistry and technology developed in the lab to the market.

The governor’s office said the company’s diligence and preparation to meet stringent environmental standards positioned it to secure one of the first environmental authorizations to begin operations under new Illinois EPA standards.

In August, Crysalis announced closure of an investment from Burnham Sterling Asset Management LLC through its Sustainable Aviation Fuel Financing Alliance fund, with Airbus as the fund’s anchor investor.