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DG Fuels lets contract for SAF complex

DG Fuels LLC, based in Washington, DC, has awarded a contract to a subsidiary of Rome-based Maire SPA’s NextChem SPA to provide technology licensing for its sustainable aviation fuel (SAF) production complex under development along the west bank of the Mississippi River near Moonshine, La., in St. James Parish (OGJ Online, Mar. 24, 2023), reported Oil and Gas Journals.

Under the contract signed on June 24, NextChem’s MyRechemical SRL will license its proprietary NX Circular technology for the gasification and gas treatment units of the proposed complex. These units will have the capacity to process 1 million tonnes per year (tpy) of locally sourced bagasse—the residual cellulose fiber from post-processed sugarcane stalks—as well as other sugarcane waste and pulp material into suitable feedstock as the initial step in the site’s SAF production process, Maire announced.

In addition to technology licensing, Maire disclosed that MyRechemical’s responsibilities under the contract include providing technical services and supplying proprietary equipment for the gasification package. The contract also includes an option to adopt a modular approach to minimize site contingencies.

While the exact value of the contract was not disclosed, Maire noted that this recent contract award follows MyRechemical’s completion of the process design package for the project’s gasification and gas treatment units (OGJ Online, Dec. 7, 2023).

The Louisiana project, estimated to cost between $3.8 billion and $4.8 billion, is scheduled to commence operations in 2028. It will have the capacity to produce 600,000 tpy (approximately 13,000 barrels per day) of SAF, which can directly replace conventional jet fuel, thereby reducing carbon dioxide emissions from commercial flights by up to 100%.

Estimated at an overall investment of $3.8-4.8 billion, the Louisiana project is slated for startup in 2028 with capacity to produce 600,000 tpy (about 13,000 b/d) of SAF that can be directly used in lieu of conventional jet fuel to reduce commercial-flight carbon dioxide emissions by up to 100% (OGJ Online, May 14, 2024).

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