SAF: DG Fuels submits government loan application


US-based fuel producer, DG Fuels hopes to scale up its sustainable aviation fuel (SAF) production imminently, following invitation from the US Department of Energy (DOE) to submit a part II application under its Title XVII Loan Guarantee Program.

If successful, the $2.15bn loan guarantee from DOE would accelerate expansion and construction of DG’s proposed facility. The first, which is currently planned to be located in Louisiana, is expected to create approximately 633 new permanent union operating jobs and up to 2,100 construction jobs over three years.

At full scale the initial facility is projected to have a SAF production capacity of approximately 151m gallons per year. Construction engineering firm, Black & Veatch has been selected to complete the engineering work, DG Fuels said Black & Veatch will play a large role in the completion of the project.

Michael C. 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. All this is to be accomplished without affecting food production The project is expected to be anchored by our existing and growing list of long-term off-take customers.”

Gary Martin, vice president, Black & Veatch added: “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 United States. It would strengthen our country’s economic, environmental, and renewable energy infrastructure while creating high paying jobs in construction and US equipment manufacturing.”