DG Fuels selects Moorhead, Minnesota, for sustainable aviation fuel facility

DG Fuels has officially selected Moorhead, Minnesota, as the site for a groundbreaking $5 billion manufacturing facility dedicated to producing low-carbon sustainable aviation fuel (SAF). This facility is set to produce an impressive 193 million gallons of SAF annually, utilizing agricultural and wood waste as feedstock.

The announcement marks a significant milestone for the Minnesota Sustainable Aviation Fuel Hub (MN SAF Hub) and represents the most substantial commitment to commercial-scale SAF production in the state to date. With this new facility, DG Fuels aims to address the increasing demand for sustainable aviation fuel, particularly as air travel continues to recover and evolve.

"This exciting announcement demonstrates how building a new SAF economy in Minnesota will create opportunities that stretch from the tarmac of MSP International Airport to every corner of the state," said Peter Frosch, president and CEO of the GREATER MSP Partnership. He emphasized the potential benefits this facility will bring to the local and state economy.

The 193 million gallons of SAF projected by DG Fuels would account for nearly half of the aviation fuel currently used at Minneapolis-St. Paul International Airport (MSP). The establishment of the facility not only promises to enhance the sustainability of air travel in Minnesota but also positions the state as a leader in the growing SAF market.

Minnesota’s value proposition for SAF producers is strong, bolstered by an abundance of diverse feedstocks, access to clean electricity, a mature rail network, and robust support from state initiatives. Mayor Shelly Carlson of Moorhead expressed optimism about the community's role in this development, noting, "Moorhead is a welcoming community and is growing in population and national influence. With the largest shovel-ready industrial site in the state of Minnesota, we are excited and prepared to compete on the national stage for this economic development opportunity."

The MN SAF Hub is actively collaborating with DG Fuels and the city of Moorhead to meet the necessary requirements to advance the project, including the aggregation of feedstocks. The hub aims to attract a variety of producers and technologies to the state, with plans for production to begin before 2030.

In line with these goals, the MN SAF Hub has launched a "Demand Consortium" aimed at purchasing several million gallons of SAF annually, with initial purchases expected to commence in the fourth quarter of 2025. This initiative is designed to stimulate demand and, in turn, attract additional supply.

The Minnesota Sustainable Aviation Fuel Credit program further incentivizes the development of the SAF market, helping to reduce risks for companies involved in the production and blending of sustainable aviation fuel in the state.

The impact of DG Fuels' investment in Clay County is projected to be substantial, with estimates of 650 quality jobs created, millions of dollars in annual on-farm income, and an economic boost of approximately $50 billion across Minnesota.

As the aviation industry seeks to reduce its carbon footprint, the establishment of this SAF facility in Moorhead could serve as a model for similar initiatives across the country, demonstrating the potential for local economies to thrive in the transition to sustainable energy solutions.