Grön Fuels announces potential $9.2 billion renewable fuel complex in Louisiana
With expansions and associated projects, the complex could involve up to $9.2 billion of total investment over several phases. A final investment decision is expected in 2021, which will determine the final cost of the project’s first phase.
Through all phases and associated projects, the complex would create an estimated 1,025 new direct jobs, with an average annual salary of $98,595, plus benefits. Louisiana Economic Development estimates the project and subsequent phases would result in up to 4,560 new indirect jobs, for a total of 5,585 new jobs for the Capital Region.
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.
The first phase of construction would involve a capital investment of over $1.25 billion and create 340 new direct 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.
Houston based Fidelis Infrastructure is an asset management firm specializing in specific industry sectors, including renewable energy, low carbon transportation fuels, sustainable and circular economy infrastructure, and digital infrastructure.
The Fidelis team has been involved in complex infrastructure projects ranging from $40 million up to $2 billion, including fiber optic networks; solar power generation; downstream petrochemical; long haul, high voltage electric transmission; and gas pipeline projects. Company partners Shapiro and Jarlsjo both attended Louisiana State University and previously worked for The Shaw Group in Baton Rouge.
LED began formal project discussions with Fidelis Infrastructure about Grön Fuels in March 2020. To secure the project, the State of Louisiana offered a competitive incentive package – subject to a final investment decision – that includes the comprehensive solutions of LED FastStart®, the nation’s No. 1 state workforce development program for the past 11 years.
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.
Grön Fuels and its sponsor, Fidelis Infrastructure, intend to use qualified local businesses to assist in the delivery, operations and maintenance of the facility. CSRS Inc. is assisting Grön Fuels in compiling prequalification of firms interested in providing services for the project.
Companies should email Jamie McKnight at email@example.com to request the information required to register interest in providing services for Grön Fuels. ■