According to the company’s website press release on November 10, 2022, DG Fuels, LLC (“DGF”), an emerging leader in drop-in sustainable aviation fuel (“SAF”) production, announces the execution of a long-term agreement with an undisclosed investment grade industrial buyer to sell up to 46 million gallons of SAF per year from DGF’s initial plant to be located in Louisiana. Additionally, the undisclosed buyer will also purchase all state of California low carbon fuel standard (“LCFS”) credits and all U.S. Federal renewable identification number (“RIN”) carbon credits produced by the Louisiana facility. At current market prices, total purchases under the initial five-year minimum term of this combined SAF and carbon credit purchase agreement exceeds $4 billion.
Delivery of SAF and carbon credits under the agreement are expected to begin in late 2026 or early 2027.
In total, the offtake agreement covers up to 230 million gallons of SAF, resulting in life cycle emission reduction of up to 3,500,000 metric tons over the initial term of the agreement. DGF’s patented system design is expected to have a carbon intensity (CI) score or -39 grams per megajoule, which is 140% lower than conventional Jet A. DGF’s SAF formula also has a higher energy density than conventional Jet A, providing airline customers with operational advantages in addition to the environmental benefits.
“We are proud to take this major step with this key partner in supporting the lasting sustainability of our planet by reducing the impact of airline travel on the environment.” Michael C. Darcy, Chief Executive Officer of DG Fuels.
“DG Fuels is committed to developing and supporting initiatives that provide practical and sustainable benefits to businesses, the environment and local communities,” said Michael C. Darcy, Chief Executive Officer of DG Fuels. “We are proud to take this major step with this key partner in supporting the lasting sustainability of our planet by reducing the impact of airline travel on the environment.”
“Cellulosic biomass feedstock SAF is the key to scaled deployment that moves the needle for the aviation industry in reducing its carbon footprint,” said Christopher J. Chaput, President and CFO of DG Fuels. “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.”
DGF’s high carbon conversion efficiency system allows for the aggressive scale up of production to meet the aviation industries need for SAF. Additionally, DG Fuels SAF product has improved blending characteristics when burned in conjunction with green hydrogen that will further reduce future fuel emissions.
About DG Fuels, LLC
DG Fuels is building a very low-CO2 life cycle emissions synthetic fuel system based on its patented high carbon conversion technology that is targeting a 97% efficiency. The DG Fuels technology directly addresses the issue of scale production to meet the environmental requirements of the aviation industry. The DG Fuels’ technology does not require the development of new engines or types of distribution infrastructure. DG Fuels’ innovative technology produces hydrogen with proven water electrolysis equipment from HydrogenPro, gravity battery power balancing equipment from Energy Vault and biomass carbon derived from timber and agricultural waste via TRI gasification technology. This system creates replacement fuel for aircraft, and potentially for locomotives, vessels and trucks as well.
DG Fuels delivers a significant value proposition to end-customers, including meaningful environmental benefits and the ability to materially address sustainability goals. If successful, DG Fuel’s carbon efficient solution will tie together all critical elements to power, fuel, and provide SAF to its customers.
MEDIA CONTACTS
DG Fuels Media Contact Information: Jennifer Beck I +1 202 649-0145 I jbeck@dgfuels.com
