Business and Economic News

Sustainable fuels plant to be built in Moorhead and operational by 2030

Airplanes are waiting to take off
Airplanes are waiting to take off during a thunderstorm at Minneapolis−St. Paul International Airport.
Kerem Yücel | MPR News 2022

A Washington D.C. based company has announced plans to built a sustainable aviation fuel production facility in Moorhead.

DG Fuels said it has a patented system to use agricultural and timber waste to create low carbon fuels.

The company said cellulosic biomass is used to generate hydrogen and synthetic aviation fuels.

The Moorhead facility will produce 193 million gallons of sustainable aviation fuel each year, according to the announcement.

The plant is expected to start production in 2030 and create 650 jobs.

In a statement, Moorhead Mayor Shelly Carlson praised the planned fuel production facility.

“Adding value to our region’s agricultural economy is a top priority and fits perfectly with Moorhead’s development strategy,” said Carlson.

Company officials did not respond to an interview request.

In August, the company announced a similar sized sustainable fuels plant would be built in Nebraska.

Minnesota has created a sustainable aviation fuel hub with a goal to deliver 100 million gallons of sustainable aviation fuel to Minneapolis-St. Paul International Airport by 2030.

The Greater MSP partnership leads the sustainable fuels hub, and President and CEO Peter Frosch said the Moorhead plant will nearly double the 100 million gallon goal. He called the project an historic investment.

“Which will create hundreds of good jobs across the state and billions of dollars in new economic activity while creating a climate change solution the country and world urgently need,” Frosch said.