12-11-2024

DG Fuels to build Sustainable Aviation Fuel facility in Minnesota

DG Fuels announced the selection of a site for a roughly $5 billion manufacturing facility and hundreds of good jobs in Moorhead, Minnesota, that will produce 193 million gallons per year of low-carbon aviation fuel (SAF) using agricultural and wood waste as feedstock.

This news is a notable milestone for the MN SAF Hub and is the most significant commitment towards commercial-scale SAF production in the state. The announcement also reflects Minnesota’s compelling value proposition to SAF producers, which includes abundant and diverse feedstocks, clean electricity, mature rail networks, and strong state support. The 193 million gallons projected by DG Fuels would represent nearly half of the fuel used at the MSP International Airport.

“This exciting announcement demonstrates how building a new SAF economy in Minnesota will create opportunities that stretch from the tarmac of MSP International Airport to every corner of the state,” said Peter Frosch, president and CEO of the GREATER MSP Partnership.

The MN SAF Hub looks forward to working with DG Fuels and the city of Moorhead to address the next set of requirements to advance this project, including aggregating feedstocks. “Moorhead is a welcoming community – and is growing in population and national influence. With the largest shovel-ready industrial site in the state of Minnesota, we are excited and prepared to compete on the national stage for this economic development opportunity,” said Mayor Shelly Carlson.

The hub is actively pursuing opportunities to bring to Minnesota producers of all sizes, using multiple technology pathways and feedstocks, and with production starts prior to 2030, to be part of this growing SAF industry, as the current demand for SAF at MSP Airport outstrips supply.

The DG Fuels announcement advances key aims of the Minnesota SAF Hub:
- Creating demand in order to attract supply. To that end, the hub recently launched a “Demand Consortium” with the goal of purchasing the first several million gallons of SAF each year, with purchases anticipated to start in the fourth quarter of 2025.

- Partnering with the state of Minnesota to incentivize and de-risk the SAF market. For instance, the state’s Sustainable Aviation Fuel Credit has served as an incentive for companies that produce or blend sustainable aviation fuel in Minnesota.

- Ensuring statewide benefits. DG Fuels estimates that its investment in Clay County will result in 650 quality jobs, millions of dollars per year of on-farm income, and $50 billion of economic impact across the state.