DG Fuel gets closer to $2.5B loans from DoE
DG Fuels to produce synthetic jet fuel using renewable hydrogen.
DG Fuels LLC today (3rd September) said to have been invited to submit a Part II Application for a US$ 2.15 billion loan guarantee from the DoE.
The loan will be offered under the US Department of Energy (DoE) Title XVII Loan Guarantee Program. However, this is one of the next several steps in the DoE process which would lead to a conditional commitment and final loan agreement from DOE. If successful, the loan will accelerate the scaling up of the proposed facility to produce sustainable aviation fuel (SAF) in the US.
The first DG Fuels facility, which is currently planned to be located in Louisiana, if fully scaled up, would have an initial around 151 million gallons annual SAF production capacity. The work is expected to generate around 2,100 construction jobs over three years.
Black & Veatch is selected for engineering work and will play a larger role in the completion of the project.
DG Fuels involves in renewable hydrogen and biogenic based, synthetic low emissions aviation and diesel fuel. Its technology produces hydrogen through water electrolysis and biomass-derived carbon replacement fuel for aircraft, and potentially for locomotives, vessels and trucks as well. The process is to accomplished without affecting food production.
Michael Darcy, CEO of DG Fuels, said, “At DG Fuels we’ve developed a carbon conversion fuel production process that is targeting a 93% carbon conversion efficiency, which reduces the amount of feedstock required to produce our SAF and lowers our cost of production.”
Gary Martin, VP, Black & Veatch, commented, “This important project enables DG Fuels to meet its mission to contribute to cleaner transportation industries and facilitates the anticipated rapid growth of the green economy in the US.”
Hydrogen Pro has also been involved with DG Fuels Louisiana 120 MW project.