DG Fuels ensures 100% offtake for Louisiana SAF project

DG Fuels LLC announced last week it has secured offtake contracts for 100% of the expected initial production of its planned sustainable aviation fuel (SAF) facility in Louisiana which will utilise at least 839 MW of electrolysers supplied by Norway’s HydrogenPro AS (OSE:HYPRO).

The developer of a low-CO2 life cycle emissions synthetic fuel system said in a statement that it has signed a long-term deal with an undisclosed investment-grade industrial buy for the sale of up to 46 million gallons of drop-in SAF per year, or up to 230 million gallons in total.

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The counterparty to the agreement will also purchase all state of California low carbon fuel standard (LCFS) credits and all US Federal renewable identification number (RIN) carbon credits associated with the plant’s production, the announcement says.

DG Fuels noted that the total purchases under the initial five-year minimum term of this contract surpass USD 4 billion (EUR 3.88bn), at current market prices. Deliveries are seen to start in late 2026 or early 2027.

“With this agreement, combined with our previously announced offtake agreements, DGF has sold out 100% of the expected initial production of approximately 120 million gallons per year,” stated Christopher J. Chaput, president and CFO of DG Fuels.

Late last month, Air France-KLM (EPA:AF) unveiled it had signed two binding contracts to source SAF, one of which is with DG Fuels and covers 600,000 tonnes to be supplied in the period 2027-2036.

(USD 1 = EUR 0.970)