Strategic Biofuels, a leading sustainable aviation fuels (SAF) project developer, announced a strategic investment commitment from Magnolia Sustainable Energy Partners (M-SEP), a newly formed Japanese-based investment consortium created by Sumitomo Corporation of Americas (SCOA) and JX Nippon Oil & Gas Exploration Corporation (JX).

The investment from M-SEP will be used to further advance the company’s flagship Louisiana Green Fuels (LGF) project, an ultra-low carbon negative SAF plant located in Caldwell Parish, Louisiana.

In addition to being a strategic investor through the consortium, JX will add its expertise to the company’s LGF project, leveraging its carbon capture and sequestration (CCS) experience gained in building and operating the Petra Nova Carbon Capture, Utilization and Storage (CCUS) project near Houston.

Project concept. Source: SCOA

The LGF project, which will convert sustainably managed forestry waste into responsibly developed SAF, has a CCS component that will capture and store carbon dioxide onsite from both its biomass-fired power plant and biorefinery.

partnership with Japanese strategic investors through M-SEP” In February, SCOA announced a major investment commitment to Strategic Biofuels’ LGF project, revealing that it will help the project reach a Financial Investment Decision and commencement of construction in early 2025. At the same time, Strategic Biofuels announced that it would be shifting its primary renewable fuel product to SAF.

SCOA intends to provide a 20-year offtake for the approximately 640 million gallons of renewable fuels produced as well as all state and federal renewable fuel credits.