DG Fuels, LLC (DGF), a developer of sustainable aviation fuel (SAF) facilities (earlier post), announced the successful closing of investment transactions with two Japanese companies. With the investments in DGF made by aviner & co., inc., Chishima Real Estate Co., Ltd. and an undisclosed investor, DGF has now exceeded its minimum investment target as part of its final round of parent-level development capital needed to fund the remaining expected expenses required to reach FID, including the ongoing FEL 3 and related expenses.
The relatively modest balance of the maximum $30-million capital raise is expected to fund in the next few months. DGF currently expects that FID on its proposed US$4.2-billion, 180 million gallon per year SAF facility in Louisiana to occur in early 2024.
The Louisiana SAF facility will be the template for multiple other such facilities to be built across North America, Europe and Asia.
The basis of DGF’s integrated fuel and energy technology is the proven Fischer-Tropsch process, in use for more than 60 years. Existing plants around the world produce more ethan 170,000 BBL per day of synthetic fuel using Fischer-Tropsch. These facilities typically use approximately one ton of coal to produce one BBL of hydrocarbons, with a life cycle CO2 emissions calculation that is slightly worse than equivalent fuels derived from conventional oil refining.
DGF’s method modifies the established Fischer-Tropsch system with several mechanisms that will decrease the CO2 life-cycle emissions and reduce the quantity of feed-stock required. These changes eliminate the need for carbon sequestration and reduce the system’s feed-stock handling costs and complexity. Additionally, DGF’s production method produces ASTM certified direct replacement fuel with greater fuel density, lower particulate and NOx emissions.
The feed-stock reduction is achieved primarily by supplementing the process with oxygen and hydrogen produced by water electrolysis units that are powered by clean wind and solar generated electricity. DGF replaces the coal gasification used by others with biomass gasification and natural gas reforming. This simplifies implementation and further reduces new carbon emissions created in the process.
Aviner, which is active in aircraft management and renewables, has worked closely with DGF as its strategic partner and representative in Japan and broader Asia to market DGF’s SAF product to off-takers in the Asia Pacific region as well as jointly studying potential production of SAF by DGF in the region.