USA BioEnergy to transform old mill site into $2.8B biorefinery in Bon Wier by 2025

BON WIER — USA BioEnergy, in partnership with Texas Renewable Fuels, is set to convert the former Louisiana-Pacific plywood mill site on Farm to Market Road 363 into a $2.8 billion advanced biorefinery. The facility will transform forest byproducts, such as sustainably sourced wood waste and thinnings, into low-carbon fuels like renewable naphtha and sustainable aviation fuel (SAF).

Governor Greg Abbott announced the project in 2022 with an initial $1.7 billion investment, which is expected to create over 140 permanent jobs. USA BioEnergy has secured more than 1,600 acres in Bon Wier for the refinery, aiming to turn an idle property into a clean energy hub by 2025.

The refinery has entered a 20-year offtake agreement with Southwest Airlines for up to 680 million gallons of SAF. The facility plans to produce between 34 million and 65 million gallons of renewable fuels annually, contingent on the final design. USA BioEnergy confirmed the implementation of Honeywell’s Experion PKS control system at the Bon Wier plant, with Johnson Matthey also joining as a technology collaborator.

“By utilizing forest thinnings for bioenergy production with carbon capture and sequestration technologies, our integration with technology providers like Honeywell will help us create a fully integrated, alternative fuels solution,” said Nick Andrews, CEO of USA BioEnergy.

The project is benefiting from approximately $150 million in state, county, and federal credits and tax incentives. Local support includes organizations such as the Texas Forest Country Partnership, Texas Forestry Association, and the City of Newton.

“This advanced-fuels facility development milestone underscores USA BioEnergy’s commitment to the future of aviation and energy security,” Andrews said in a February statement. “We also appreciate the opportunity to create good-paying jobs in Newton County, Texas, which has one of the lowest per capita incomes in the state. We are proud this project is a win-win-win for the area, the industry, and our business objectives.”

Once operational, the plant is expected to employ roughly 200 people full-time, alongside several hundred construction jobs during the build-out phase. The facility will also provide a new market for East Texas forestry byproducts, abundant in Newton and surrounding counties.

Despite the land purchase and new technology partnerships, construction has not yet begun. USA BioEnergy says engineering and design work is ongoing, with construction expected to take about two years once it starts. Full operations are projected for 2028 or 2029.

For now, the project remains a mix of anticipation and waiting. “Progress is moving forward as we continue through the planning phase,” Andrews said.