On Tuesday, Koch Engineered Solutions announced that two of its subsidiaries, Optimized Process Designs (OPD) and Koch Project Solutions (KPS) will partner with Texas energy infrastructure investor Fidelis Infrastructure LP to execute and implement several sections of the Grön Fuels renewable energy complex in Louisiana. The $9.2 billion multi-year program is located at the Port of Greater Baton Rouge, and is expected to create more than 5,000 direct and indirect quality jobs.
The Grön Fuels complex created via this investment will produce green hydrogen, renewable diesel, sustainable aviation fuels as well as bio-plastic feedstocks. The project also includes biogenic carbon capture and sequestration.
Situated strategically at the crossroads of rail, deep water ports, the Mississippi River, and national pipeline connectivity, Grön’s renewable fuels complex will enable access to both U.S. East and West Coast markets, as well as Canadian and European customers.
The project will produce 60,000 barrels per day of renewable diesel, serving off take customers and markets in the U.S., Canada and Europe in need of low carbon transportation fuels. Its production capacity is equivalent to 1,000 megawatts of green hydrogen produced by electrolysis, and with a pathway to a net negative CO2e carbon footprint, due to its carbon capture and sequestration capability.
According to Fidelis Infrastructure, the project benefits from substantial existing infrastructure at its host site, the Port of Greater Baton Rouge, including a recently completed unit train terminal, a large grain elevator at the site, a deepwater port accommodating SuezMax size vessels, and interconnection with the Bengal Pipeline, providing access to the Colonial Pipeline System and the Plantation Pipeline.
“As a part of Koch Engineered Solutions, OPD is well positioned to create meaningful value for Fidelis and other growth-focused companies in this industry though its unique speed to market, turn-key approach to engineering, procurement, and construction,” said Brian Boster, president of Optimized Process Designs.
“We’re excited to partner with Fidelis to improve the development and scale of long-term fuel solutions across industries,” said Paul Switzer, president of Koch Project Solutions.
“We are pleased to partner with Koch Engineered Solutions as a proven world-class execution and strategic provider to assist Fidelis in the advancement of the Grön Fuels Ecosystem,” said Dan Shapiro, Fidelis Co-Founder, CEO, and Managing Partner. He added, “The combination of deep expertise in engineering, procurement and construction, project management, and operational excellence makes KES and its execution subsidiary, Optimized Process Designs, the perfect project delivery partner for the renewable fuels complex.”
Bengt Jarlsjo, Fidelis Co-Founder, Partner, and President added, “In addition to leveraging KPS’ knowledge and scale, we are excited to work with KES on market-leading carbon capture and sequestration solutions for the Grön Fuels Ecosystem.”
A feasibility study for Grön Fuels LLC was announced via the Louisiana Economic Development Office last November, at which time it was projected that direct jobs generated under the project would have an average annual salary of $98,595, plus benefits.
“This renewable fuel production facility will help to secure Louisiana’s place as a leader in environmentally friendly energy production,” Louisiana Governor John Bel Edwards said at that time. “Growing global demand for renewable transportation fuels creates a significant growth opportunity for our state. Once again, Louisiana’s port, rail and pipeline infrastructure and other logistical advantages are making possible an important industrial complex that will deliver many quality jobs for our skilled workforce. We look forward to the final investment decision for Grön Fuels to launch this innovative project at the Port of Greater Baton Rouge.”