Delta Biofuel plans to establish a full-scale renewable fuel production facility in Iberia Parish, Louisiana. The $100 million project is expected to create 126 jobs.

The facility will convert sugarcane waste into feedstock for low-emissions energy generation and have the ability to produce 340,000 metric tons of biomass fuel pellets annually. Construction is scheduled to begin in late June.

“Delta is thrilled to reach this milestone and begin construction,” Phil Keating, CEO, Delta Biofuel said. “We look forward to putting waste bagasse to good use, solving a serious problem for the sugar industry and reducing GHG emissions. I’d like to thank Iberia Parish, One Acadiana and LED for helping us get this project off the ground. Of course, we could not have done this without the coordination and support from our sugar mill partners.”

To secure the project, the state of Louisiana offered Delta Biofuel a incentive package that includes the comprehensive workforce development solutions of LED FastStart and a $1 million performance-based grant for infrastructure improvements. The company has been approved for the state’s Industrial Tax Exemption program and has applied for the Quality Jobs program.

“Louisiana has emerged as a leader in renewable energy through continued investment and innovation,” noted Governor John Bel Edwards. “As one of the nation's top producers of sugarcane, producing more than 2 million tons of raw sugar in 2022, it is only fitting that our state will lead the way in the production and export of this new renewable fuel source. Once again we see how the transition to cleaner energy creates investment, jobs and a diverse range of opportunities across multiple economic sectors and regions of our state.”

Delta Biofuel has secured exclusive long-term agreements to acquire supplies of feedstock bagasse from five sugar mills in surrounding parishes, according to state officials. The company has long-term contracts primarily with power utility companies across Europe for the sale of more than 1.8 million tons of pellets over the next several years.

“We are thrilled about Delta Biofuel’s commitment to place their production facility in Iberia Parish, and we welcome them to Acadiana’s rich agribusiness and energy landscape,” added Troy Wayman, President and CEO, One Acadiana added. “Their plan to source from nearby sugar mills in Iberia, St. Mary and St. Martin parishes is the perfect collaboration to create alternative fuel from previously unneeded bagasse. Congratulations to our partners in Iberia Parish on this project, which will have a great impact on the future of energy in our region.”