Strategic Biofuels Reveals Major Investment from Magnolia Sustainable Energy Partners

On 9th April 2024, Strategic Biofuels, a prominent developer of sustainable aviation fuels (SAF), unveiled a strategic investment pledge from Magnolia Sustainable Energy Partners (M-SEP), a recently established Japanese investment consortium led by Sumitomo Corporation of Americas (SCOA) and JX Nippon Oil & Gas Exploration Corporation (JX). This investment from M-SEP is earmarked to propel the progression of Strategic Biofuels' primary initiative, the Louisiana Green Fuels (LGF) project. Situated in Caldwell Parish, Louisiana, the LGF plant aims to produce ultra-low carbon negative SAF.

Dr. Paul Schubert, CEO of Strategic Biofuels, remarked, "Teaming up with JX and Sumitomo through their innovative consortium, M-SEP, not only provides crucial financial backing but also invaluable expertise in carbon capture technology, essential for our continued progress towards construction. Our LGF project has always been centered around the mission of low-carbon sustainability, and the milestones we've reached so far underscore the power of strategic, collaborative partnerships in advancing cleaner technologies."

Alongside its role as a strategic investor within the consortium, JX will contribute its expertise to Strategic Biofuels' LGF project. Leveraging its experience in carbon capture and sequestration (CCS) acquired from the development and operation of the Petra Nova Carbon Capture, Utilization, and Storage (CCUS) project near Houston, JX will enhance the LGF project. This initiative aims to convert sustainably managed forestry waste into premium sustainable aviation fuel (SAF), while incorporating a CCS component to capture and store carbon dioxide onsite from both its biomass-fired power plant and biorefinery.

Toshiya Nakahara, President and CEO of JX, expressed, "The LGF project offers a valuable opportunity to strengthen our capacity in the broader energy transition through the utilization of our CCS knowledge. Collaborating with Strategic Biofuels and SCOA is a privilege, given their impressive technical prowess, project management acumen, business proficiency, and financial leadership, all of which are instrumental in realizing our shared objectives."

"Carbon capture and storage (CCS) will be instrumental in our journey towards carbon neutrality. JX's involvement will significantly bolster the production of ultra-low carbon sustainable aviation fuel (SAF), and we eagerly anticipate the promising future with these esteemed partners," stated Tom Wada, President & CEO of SCOA. "With ambitious initiatives aimed at bolstering global energy security, sustainability, and carbon reduction targets, we believe the LGF project marks a significant stride forward. We remain committed to fostering strategic alliances with Japanese investors through M-SEP."

In February, SCOA made a significant investment pledge towards Strategic Biofuels' LGF project, aiming to facilitate the project's Financial Investment Decision and kickstart construction by early 2025. Concurrently, Strategic Biofuels disclosed its decision to prioritize sustainable aviation fuel (SAF) as its primary renewable fuel product. SCOA plans to secure a 20-year offtake agreement for the production of approximately 640 million gallons of renewable fuels, alongside acquiring all state and federal renewable fuel credits.