Delta Biofuel has announced a $100 million final investment decision for the construction and start up of a full-scale renewable fuel production facility, about 78 miles Southwest of Baton Rouge, in Iberia Parish that will convert sugarcane waste into feedstock for low-emissions energy generation.
The company is expected to create 126 new direct jobs with an average salary of $62,500. Louisiana Economic Development estimates the project will result in an additional 149 indirect jobs, for a total 275 new jobs in the Acadiana region.
“Louisiana has emerged as a leader in renewable energy through continued investment and innovation,” said Gov. John Bel Edwards. “As one of the nation's top producers of sugarcane, producing more than 2 million tons of raw sugar in 2022, it is only fitting that our state will lead the way in the production and export of this new renewable fuel source. Once again we see how the transition to cleaner energy creates investment, jobs and a diverse range of opportunities across multiple economic sectors and regions of our state.”
The facility will be the first of its kind in North America for its use of bagasse, a byproduct of sugarcane production, to manufacture biomass fuel pellets on a commercial scale that offer a lower-cost and stronger greenhouse gas reduction profile versus other biomass fuels, such as wood pellets, used in power generation.
The total capital expenditure is 43% higher than the $70 million investment that was anticipated when the project was first proposed in 2021. The higher level of capital expenditure is reflective of increased labor and equipment cost, as well as Delta’s decision to increase the facility’s production capacity.
