USA BioEnergy will construct a $1.7bn advanced biorefinery in Bon Wier, Texas, which will produce clean burning transportation fuel from wood waste feedstock.

The biorefinery project will be executed by the company’s subsidiary Texas Renewable Funds (TRF).

It will be capable of converting one million green tons of wood waste into 34 million gallons per year of transportation fuel such as renewable diesel, sustainable aviation fuel, and renewable naphtha.

USA BioEnergy is expected to complete the project in late 2025.

Future expansion of the biorefinery is expected to increase its production capacity by two folds to 68 million gallons per year. Additionally, the expansion will enable it to capture and sequester nearly 50 million metric tons of CO2 during its lifetime.

USA BioEnergy CEO Nick Andrews said: “USA BioEnergy performed an extensive site search and analysis to identify the best location for our project.

“State and local incentives then became the key component of our decision and we’re excited to select Bon Wier.

“We’ve had tremendous assistance from Economic Development in Newton County, including leadership from Judge Kenneth Weeks, Nancy Windham, President & CEO of Texas Forest Country Partnership, Don Iles with Sabine River Authority of Texas and Rob Hughes, Executive Director, Texas Forestry Association among many others.”

The new facility in Bon Wier will generate 142 jobs in the Newton County community.

Texas Governor Greg Abbott said: “We are excited that USA BioEnergy has chosen East Texas as the home for their new advanced biorefinery. This investment will further cement Texas as an innovative energy leader and will bring unprecedented economic opportunities to Bon Weir and Newton County.”

USA BioEnergy is said to have fuel offtake agreements in place with a major trading and logistics firm and a premier airline. The Arizona-based renewable fuels developer expects to announce its partners and suppliers in the coming months.

Earlier this month, the company had secured $150m in state and local incentives for the advanced biorefinery.