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Area Development - Site Selection, Facility Planning and Workforce Development

Arbor Renewable Plans West Baton Rouge Parish, Louisiana, Manufacturing Plant

06/15/2022
Arbor Renewable, a Houston-based company that produces renewable gasoline and green hydrogen from wood waste and forest residue, plans to establish a manufacturing and distribution facility in West Baton Rouge Parish, Louisiana. The $800 million project is expected to create 32 jobs.

The company plans to locate its greenfield facility at the Port Allen Rail Terminal, which offers railroad and highway accessibility and proximity to timber operations. Operating as Magnolia Renewable Fuels LLC, the new site would produce renewable gasoline from wood waste biomass sourced from Louisiana and Mississippi timber operations. Construction is expected to begin in late 2023, with the first train in operation by the end of 2025.

“The level of support and engagement we’ve received from the folks at the Baton Rouge Area Chamber, West Baton Rouge Chamber, the local community and officials, and the state has been incredible,” Arbor Gas CEO Timothy Vail said. “At full capacity, this plant will have a production capacity of 2,000 barrels per day of renewable gasoline with the potential for further expansion. The product would be blended with conventional gasoline to achieve renewable fuel standards in the U.S. and Europe.”

To secure the project, the State of Louisiana offered the company a competitive incentive package that includes the services of LED FastStart, the No.1 ranked statewide workforce development program in the U.S. for the past 12 years. The company is also expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.

“Arbor Gas’ planned renewable gasoline production facility in West Baton Rouge Parish is further evidence that our all-of-the-above approach to energy is attracting the right kind of investment to Louisiana,” Governor John Bel Edwards said. “The company’s commitment to a lower-carbon future aligns with Louisiana’s commitment to Net Zero emissions by 2050. Incorporating Louisiana agribusiness byproducts into its energy production process broadens this project’s potential economic impact to a number of rural communities. We welcome this forward-thinking energy company to Louisiana and look forward to seeing the project progress.”

Magnolia will source southern yellow pine pre-commercial thinnings, a byproduct of routine forest management operations. The plant will employ carbon capture and sequestration emissions-reduction technology. Arbor Gas recently announced a similar project in Beaumont, Texas.

“The Baton Rouge Area is rising up as the global epicenter for renewable and transitional energy investments," said Adam Knapp, Baton Rouge Area Chamber president and CEO. "Since 2020, the Capital Region has seen over $18.5 billion in announced or considered investments. The industrial sector is moving toward net zero carbon emissions in manufacturing. We applaud Arbor Gas as the latest to recognize the unique advantages for energy transition business development in Louisiana and the Capital Region.”

Initial plans call for the installation of two product trains, with the capacity for future expansions. Arbor Gas projects that each train will sequester approximately 275,000 tons of CO2 annually.

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