DG Fuels Town Hall: Turning Stover Into Opportunity

With lingering low crop prices and higher input costs leaving farmers with tight profit margins, if any, new revenue streams from the DG Fuels synthetic aviation fuel plant offers hope for a more profitable future for area ag producers.

The project will also create hundreds of local jobs and place Phelps County at the forefront of the exciting science of turning additional crop residue (biomass) into energy.

That was part of the message that speakers emphasized during a town hall meeting hosted by the Phelps County Development Corporation at the Phelps County Ag Center on January 14. Nearly 400 people, including many local and state agribusiness leaders, attended the meeting to hear updates on the project and ask questions.

In August 2024, DG Fuels announced plans to build a now $9 billion synthetic aviation fuel plant in Phelps County.  The plant will process corn stover into aviation fuel. Once completed, it would create 640 permanent jobs and have a positive financial impact for farmers and the entire community.

Michael Darcy, DG Fuels President and CEO; Julie Bushell, CEO of Global Sustainability Developers, LLC; Courtney Dentlinger, VP of Customer Service & External Affairs and Chief Customer Officer at NPPD; and Chad Waldow, CEO of Southern Power District, presented information and answered questions at the meeting. PCDC Executive Director Jeff Hofaker introduced the speakers and moderated the meeting.

Progress Made

Bushell said she has been working on the DG Fuels project daily, including studying potential water issues. A water study was ordered to be conducted by Olsson and should be completed in March. She said a previous idea to transport water from the Great Lakes to lessen the strain on local water supplies is no longer being considered. She encouraged local residents to share their thoughts and ideas on solutions as the project progresses.

When asked if the project was going to happen, Darcy said he couldn’t give a 100 percent guarantee. 

“All I can promise you is that we are doing the work,” Darcy said. “We are working with the right people to make sure we do the things necessary to make this happen. That’s all I can promise… that we will do the work.”

Darcy said he is working with Korean-based company SAMSUNG E&A and Black & Veatch on DG Fuel plant designs, using the Fischer-Tropsch process to turn corn stover biomass into fuel, which is ideal for this process. 

In fact, he announced plans to build a corn stover pelletization plant in Phelps County first in order to supply the product to New Orleans for his inaugural synthetic fuel plant in St. James Parish, Louisiana. 

“We are helping get Louisiana started here in Nebraska,” he said.

He estimated the pellet facility would cost $750 million and would employ 150 people. He envisions the first facility being the pelletization plant and the second expansion being an the SAF plant in Phelps County after the Louisiana plant is completed.

Environmental Impact

When asked about the environmental impacts of the DG Fuels plant, Darcy said, “We are not only green, we are clean.”

He said a study on atmospheric emissions completed for the Louisiana project found the SAF plant will emit fewer harmful emissions than a 150-bed hospital.

“It’s the nature of our technology,” he said. “We turn the product into gas, and we capture the gas to make fuel.”

He said biofuel is degradable, which is what the aviation industry likes about it.

“We produce a fuel that is cost-competitive with conventional petroleum, especially right now, and we also have a very high carbon conversion efficiency,” Darcy said. “A typical refinery gets 90-92 percent efficiency, meaning 92 percent of the energy or carbon that comes in goes out as a product. We are at 97 percent efficiency, as 97 percent of the carbon that’s in the corn stover goes out as synthetic aviation fuel.”

He said the jet fuel produced will look like water, and the plant won’t produce an odor.

“We will look a little like a refinery, but we don’t smell like a refinery,” he said. 

Dentlinger and Waldow spoke briefly about the power needed for the project, ensuring attendees that the project would not take electricity away from other users. Essentially, DG Fuels would help fund any electrical updates needed for the project.

“I have to make sure power is available when we need it, so I work closely with local providers, and that usually means somebody sends me a bill,” Darcy said.

When asked about the community impacts of the project, Darcy said he is working with the local hospital and other entities to ensure the project doesn’t overwhelm systems. He also doesn’t want to see “man camps” scattered around the county during the construction phase, which would require about 2,000 workers. He welcomes community input and partnership to ensure a smooth process.

“We need to work with the community to make sure we do what makes sense for you and us,” Darcy said. “I want to work with the community so we can all benefit from this project.”

Corn Stover Needs

Darcy estimated that DG Fuels would need roughly 600,000 acres of corn stover, or 1.2 million up to 2.5 million dry tons, annually to make the SAF in Louisiana and then Nebraska, respectfully. He praised Phelps County as being one of the top agricultural regions in the country and said the area serves as a vital resource for DG Fuels’ innovative process.

He said the project will provide a new revenue stream for area farmers, and he is looking to build long-term relationships with agricultural producers in the county and region.

Specific questions related to corn stover and farming practices were referred to Justin Bash and Ben Lans of AgBio 1867, LLC, in Kearney. They are handling corn stover contracts, and they are already working with area farmers on agreements. 

Speakers encouraged anyone with questions to please share their contact information so they can be added to communications about the project. Reach out to Hofaker at jeff@phelpscountyne.com or call (308) 995-4148 to ask further questions or to be added to the update list. PCDC also has a page on its website dedicated to sharing information about the project at https://www.phelpscountyne.com/phelps-county/dg-fuels.