Grön Fuels Studies Port of Baton Rouge, Louisiana for Renewable Fuel Complex
The project would be built in stages over nine years at a site leased from the port on the west bank of the Mississippi River, near Port Allen, according to Louisiana Economic Development. The first phase of construction would involve a capital investment of over $1.25 billion and create 340 jobs by 2024. The base project is expected to produce up to 60,000 barrels per day of low-carbon renewable diesel, with an option to produce renewable jet fuel utilizing non-fossil feedstocks, including soybean oil, corn oil and animal fats. Upon completion of all phases, potentially by 2030, the site would be one of the largest renewable fuel complexes in the world.
With expansions and associated projects, the complex could involve up to $9.2 billion of total investment over several phases, state officials said. A final investment decision is expected in 2021, which will determine the final cost of the project’s first phase.
“Louisiana’s core strengths in the field of building and operating plants that produce fuels and products for the world, coupled with its logistically advantaged deepwater location at the nexus of energy and agriculture, serve as the launching point for a new ‘high tech’ transition of the region into the next generation of energy,” Fidelis Managing Partner Dan Shapiro said. “I’m proud to be involved in this exciting project as we work to advance it through feasibility and its next steps.” “It definitely feels good to work to advance this project and give back to Louisiana and the Baton Rouge region,” Fidelis Infrastructure co-founder Bengt Jarlsjo said.
The State of Louisiana offered a competitive incentive package to secure the project, subject to a final investment decision, that includes the comprehensive solutions of LED FastStart, the state's workforce development program. The package also includes a performance-based grant of up to $15 million, payable at up to $2.5 million per year for six years, for project development and infrastructure. The company also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
“This renewable fuel production facility will help to secure Louisiana’s place as a leader in environmentally friendly energy production,” Governor John Bel Edwards said. “Growing global demand for renewable transportation fuels creates a significant growth opportunity for our state. Once again, Louisiana’s port, rail and pipeline infrastructure and other logistical advantages are making possible an important industrial complex that will deliver many quality jobs for our skilled workforce. We look forward to the final investment decision for Grön Fuels to launch this innovative project at the Port of Greater Baton Rouge.”
“The port is excited to have finalized the ground lease and assist Fidelis Infrastructure in advancing the investment in the Grön Fuels new renewable diesel project for Louisiana and the Greater Baton Rouge region,” said Executive Director Jay Hardman of the Port of Greater Baton Rouge. “The project is great for the people of Louisiana, the port and the community and economic development mission it serves, the agricultural industry, and those who benefit from the clean fuels the plant will produce.”
“This is a transformative new company and investment for the Capital Region, and we have enjoyed working this project with company executives over the last year,” said President and CEO Adam Knapp of the Baton Rouge Area Chamber. “Fidelis brings hundreds of quality, high-paying jobs and huge capital investment during a critical time for both jobs and innovation for this sector. This is a big deal, and puts metro Baton Rouge on the map as home to the largest renewable fuel refinery in the world.”
Supply Chain Bottlenecks Creating New “Logistical Hotspots”
Changes in the Incentives Landscape
The “Great Resignation” Is Impacting Corporate Relocations
Workforce Q4 2021
2020 Top States for Doing Business Showcase Their Pro-Business Environments
2021 Gold & Silver Shovel Awards Recognize State and Local Economic Development Efforts
How an International Business Can Enter the U.S. Market Via M&A