USA BioEnergy (USABE) today announced it has signed a letter of intent with LP Building Solutions outlining the parties’ plans to enter a long-term supply agreement for sustainably sourced wood fiber to support operations at USAB’s planned Texas Renewable Fuels (TRF) biorefinery in Bon Wier, Texas. The advanced biorefinery will require raw wood feedstocks for the production of renewable fuel. Once finalized, the agreement would provide for up to 2.2 million tons of woody biomass annually for an initial term of 20 years.This advanced biorefinery will convert forest thinnings into sustainable aviation fuel (SAF) and other renewable fuels. With more than five decades of experience in forestry and timber operations in East Texas, LP is expected to serve as the exclusive procurement agent for TRF under the future agreement, leveraging its regional expertise to source feedstock responsibly and sustainably.“LP is proud to bring our deep roots in sustainable forestry to support the Texas Renewable Fuels project,” said LP Natural Resources Manager Steven Meadows. “Our long-standing commitment to responsible resource management is well aligned with USA BioEnergy’s vision for sustainable fuel production. We look forward to advancing this effort, which benefits the regional economy, promotes environmental stewardship, and advances the clean fuels industry.”All biomass sourced under this agreement will meet stringent sustainability standards and will be verified through independent third-party audits and certifications.“This agreement is a key milestone for our Bon Wier project,” said USA BioEnergy CEO Nick Andrews. “Long-term, bankable feedstock supply is essential to securing favorable project financing. Working with a trusted, reputable company like LP helps us align the term of our supply agreement with our debt, which is critical to lowering our cost of capital. This collaboration underscores the strength of our commercial partnerships and our commitment to delivering sustainable, American-made fuels.”In January, USABE closed on the acquisition of over 1,600 acres of land in East Texas for its new $2.8 billion advanced biorefinery, designed to convert wood waste into sustainable, net-zero sustainable aviation fuel (SAF). The planned greenfield facility is currently in detailed design and engineering and aims to address airlines’ growing demand for SAF by converting sustainably sourced forest thinnings into sustainable aviation fuel. The landmark SAF facility has secured a 20-year offtake agreement with Southwest Airlines. It is at the forefront of advancing ultra-low-carbon fuel, which is much needed in the aviation industry.&nbsp;After the engineering and design process is completed, construction of the biorefinery is expected to take approximately two years, followed by a six- to eight-month commissioning period.&nbsp;The state-of-the-art facility will annually convert one million tons of sustainably sourced woody waste into 65 million gallons of premium net-zero transportation fuel, including sustainable aviation fuel and renewable naphtha. The plant will also capture and sequester over 50 million metric tons of carbon dioxide over the biorefinery’s lifetime.&nbsp;&nbsp;BDO Zone Initiative:“We are thrilled to see that the Bon Wier, BDO Zone has been recognized as Project Site of the Year at the 2025 Best of the Bioeconomy Awards during the Advanced Bioeconomy Leadership Conference in Washington, D.C.,” said Jordan Solomon, chairman of the BDO Zone Initiative. “This award highlights the innovation and impact of the first-ever AA-rated BDO Zone, where USA BioEnergy is developing a major biorefinery to convert woody biomass into sustainable aviation fuel and renewable diesel, which also plays a vital role in wildfire mitigation. With over 1,500 votes cast by industry leaders, Bon Wier’s recognition underscores its vital role in shaping the future of the bioeconomy.”Legal Prospective:Mark Riedy, Patrick McShane, and the Kilpatrick Energy Practice Group represent USABE in negotiating and drafting all project financing agreements (including all equity placement and municipal tax-exempt bond and DOE Title 17 loan guarantee financing), tax and corporate structuring, federal governmental affairs, including federal energy, and environmental tax policy initiatives, among other matters. USABE advocates for clean fuel and low-carbon policies that incentivize the use of clean fuels and clean energy. USABE is an active member of the Alternative Fuels and Chemical Coalition (“AFCC”). This leading Washington, D.C.-based bioeconomy trade association, which Mr. Riedy co-founded and for which he serves as General Counsel, advocates for cutting-edge public policies to promote the development and domestic production of advanced fuels, renewable chemicals, biobased products, and Sustainable Aviation Fuels. Mark J. Riedy is also a Partner at&nbsp;<a href="https://kilpatricktownsend.com/en">Kilpatrick, Townsend &amp; Stockton, LLP</a>.The project is receiving support from state, county, and federal credits and tax incentives totaling approximately $150 million. Local supporting organizations include the Texas Forest Country Partnership, Texas Forestry Association, Townsend Forest Management, the City of Newton, Newton County, the Newton Independent School District, Jasper County,&nbsp;

thumbnail_USABioEnergyLogo.jpg

USABioEnergyLogo.jpg

USA BioEnergy on June 10 announced it has signed a letter of intent with LP Building Solutions that outlines plans to enter a long-term supply agreement for sustainably sourced wood fiber to support operations at a proposed biorefinery in Texas. 

USA BioEnergy secures long-term feedstocks supply for $2.8 billion SAF refinery in Texas

Related Stories

Industry leaders and scholarship recipients honored at the 2025 International Fuel Ethanol Workshop & Expo

SkyNRG, ICF release 2025 SAF outlook

Praj Industries collaborates with Enersur on biorefinery project in Paraguay

RIC Energy and Siemens partner to jointly develop renewable hydrogen, green ammonia, and e-fuels

SAFasia and Emerging Fuels Technology sign an MOU to support the development of multiple SAF projects in the Philippines

Upcoming Events

North American SAF Conference & Expo

2026 International Biomass Conference & Expo

USA BioEnergy secures long-term feedstocks supply for $2.8 billion SAF refinery in Texas .css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}