Water Study Underway as DG Fuels Advances

Behind-the-scenes progress continues on the proposed DG Fuels synthetic aviation fuel (SAF) plant in Phelps County, with key engineering studies underway. Local residents will have an opportunity to learn more and ask questions at a second public town hall meeting scheduled for Jan. 14 at the Phelps County Ag Center. 

To better understand the project’s potential water use and local impact, Nebraska-based engineering company Olsson has been commissioned to conduct a comprehensive evaluation at the site and surrounding region. The study measures the effect of the proposed operation on groundwater and will result in a detailed Hydrogeologic Evaluation Report, which will be shared with stakeholders.

The study should be completed by the spring of 2026.

The Phelps County plant will produce 193 million gallons of aviation fuel per year using DG Fuels’ patented process, which relies on corn residue (stover) or other biomass feedstocks. DG Fuels has already secured commitments from major airlines for 100 percent of the fuel projected to be produced at the Phelps County site.

DG Fuels will pay $160 per ton premium price for stover to participating farmers within a 75-to-100-mile radius of the Phelps County plant, adding more than $150 million of new farmer revenue annually to the region.

Momentum for DG Fuels’ national portfolio also increased in November when the company announced in a press release the appointment of Korean-based global company SAMSUNG E&A as a major contractor for its inaugural SAF project in St. James Parish, Louisiana, an $8 billion development.

According to the press release, SAMSUNG E&A will collaborate with Black & Veatch, which is the contractor for the balance of the project and is the overall integrator of the system’s component technologies. The two companies are also having preliminary discussions on potentially extending the relationship for DG Fuels projects in Minnesota and Phelps County, Nebraska.

“We are thrilled to have learned about the positive overall movement of the DG Fuels project,” PCDC Executive Director Jeff Hofaker said. “Phelps County residents, farmers, businesses and community leaders are looking forward to hearing updates on the project. PCDC is excited to host the town hall meeting in January to provide more updates and Q & A.”

From the PCDC Business Journal, Winter 2026