(The Center Square) − Projects are under way in Louisiana to make the state a leader in biofuels, just as it is one of the top states in oil and natural gas production.
On Tuesday, Woodland Biofuels announced a $1.35 billion investment to build the world’s largest carbon-negative renewable natural gas and ultra-green hydrogen facility at the Port of South Louisiana.
The Toronto-based company plans to utilize waste biomass to produce sustainable biofuel for transportation, heating, and electricity generation. The project, located at the Globalplex multimodal facility in St. John the Baptist Parish, will be rolled out in two phases, according to the company’s news release.
“We’re excited to bring the world’s largest carbon-negative RNG and hydrogen plants to the Port of South Louisiana,” said Woodland Biofuels CEO Greg Nuttall. “This facility will drive economic growth in St. John the Baptist Parish while leveraging Louisiana’s skilled workforce and infrastructure.”
LED has offered Woodland Biofuels an incentives package valued at more than $250 million, including grants, infrastructure support, and workforce development programs. Woodland is also expected to participate in the state’s Quality Jobs and Industrial Tax Exemption programs.
Woodland anticipates generating 110 new positions with an average yearly wage exceeding $90,000. According to Louisiana Economic Development, an additional 259 indirect jobs could be created, bringing the total potential job growth in the Southeast Region to 369. Woodland also estimates that the project will lead to the creation of around 500 construction jobs.
Biofuel production involves converting organic materials like wood chips, agricultural crops, or municipal waste into renewable energy sources that serve as alternatives to conventional fossil fuels. This process can be carried out through various techniques, including fermentation, distillation, and pyrolysis.
Other biofuel feedstocks include plant, algal, or animal biomass. The alternative green-fuel can be used in aviation, heating and electricity.
The biofuel industry is only just emerging, with a 2023 market size valued at $167 billion, according to Markets and Markets. The industry is expected to climb to a value of $225 billion by 2028, a compound annual growth rate of 6.2 percent.
Woodland is not the only company to recently invest in Louisiana biofuels. In February, Strategic Biofuels and Sumitomo Corporation of Americas announced a Joint Development Agreement for the Louisiana Green Fuels project at the Port of Columbia, Louisiana.
SCOA will lead a Japanese investment consortium to fund the project through construction, set to begin in early 2025. The project will focus on producing sustainable aviation fuel, with SCOA committing to a 20-year offtake for the 640 million gallons of renewable fuel and associated credits.
