Sumitomo Corp. of Americas (SCOA), a subsidiary of Tokyo-based Sumitomo Corp., has signed on as a project partner for the development of Louisiana Green Fuels LLC’s (LGF) biorefinery and bioenergy with CCS (BECCS) power plant in Port of Columbia in northeast Louisiana’s Caldwell Parish, about 25 miles south of Monroe. The partnership aims to fund most of the development capital needed to carry the project to financial investment decision (FID) and start of construction in early 2025.
As part of the agreement, SCOA will take an anchor position and lead the formation of a Japanese-based investment consortium. Upon taking FID, SCOA will also acquire rights to participate in a portion of the full project equity requirement.
In light of this partnership, Strategic Biofuels, the parent company of LGF, has decided to shift its primary renewable fuel product from a mix of renewable diesel and renewable naphtha to sustainable aviation fuel (SAF). This move aligns with the rising demand for SAF from the commercial aviation industry as it pursues decarbonization.
“The shift to SAF is an exciting moment for us and our partners, for the energy landscape in Louisiana, and for the greater global energy transition overall,” said Dr. Paul Schubert, Strategic Biofuels’ chief executive officer.
As part of the partnership agreement, SCOA intends to provide a 20-year offtake for the nearly 640 million gallons of renewable fuels produced by LGF annually. Additionally, SCOA will purchase all state and federal renewable fuel credits. This collaboration not only enables lower emissions from the aviation sector but also contributes to reducing LGF’s overall carbon footprint.
“Our partnership with Strategic Biofuels is just another example of our commitment to support the energy transition within the Americas,” said Sandro Hasegawa, general manager of SCOA’s Energy Innovation Initiative Americas. “We look forward to leading the investment with our partners in Japan and demonstrating what can be accomplished when global players work together.”
