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Strategic Biofuels achieves major CCS milestone in Louisiana

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Strategic Biofuels’ carbon capture and sequestration (CCS) test well programme at its Louisiana Green Fuels Project (LGF) is complete. This marks a major step towards becoming the world's first carbon-negative renewable diesel plant.

Located on a 171-acre site at the Port of Columbia, the LGF plant will convert forestry waste feedstock into renewable diesel and is projected to produce 33.7 million gallons of renewable fuel per year once in operation.

The goals of the test well programme were to demonstrate that CO2, the main greenhouse gas generated during fuel production, can be safely and securely stored deep underground and that the storage reservoir has sufficient capacity to store all the gas produced over the plant’s lifetime.

Completing the test well programme is an essential pre-requisite for Strategic Biofuels securing the permit for the EPA Class IV sequestration well.

LGF has secured a 20-year agreement with an established, bankable feedstock supplier for the delivery of compliant feedstock to the plant, ensuring long-term and cost-effective supply. The waste material will be in-woods processed and delivered as chips.

The cleaner renewable fuels produced at the plant will be transported to California by rail for one of the largest truck stop operators in the country through a 20-year offtake agreement, including purchase of all the site’s Federal (RFS) and California (LCFS) carbon credits.

“Carbon capture and permanent geologic sequestration is no longer a hypothetical scenario for LGF – successful completion of the test well is a major milestone that’s not been achieved by any other renewable diesel project,” said Dr Paul Schubert, CEO of Strategic Biofuels.

“These results enable us to move forward knowing that combining CCS with the conversion of sustainable forestry waste to renewable diesel at our project site will enable us to achieve our deeply negative carbon footprint goal.

“Deep carbon negativity greatly increases the potential carbon credit revenues from our fuel and vastly improves the project’s returns. What has set us apart from other developers was recognising that the de-risking we could achieve with the test well more than justified the multi-million dollar expenditure for the programme at this early stage.”

Strategic Biofuels is now moving into a phase of engineering design for the plant, which will give greater clarity on the overall long-term project costs, while also applying for the required regulatory permits and putting third-party contracts in place.

Although the data collection from the CCS test well is complete, it will remain in place as a monitoring well once the facility is built and CO2 injection begins in its Class IV well. The current project schedule is for the plant to be mechanically complete in mid-2025 and achieve full commercial operation in late 2025.