HOLDREGE — More than 300 people packed the Phelps County Ag Center on Dec. 17 to learn details about DG Fuels’ plans to build a sustainable aviation fuel (SAF) plant in the county.
The $5 billion project, which will convert corn stover into SAF, would create 640 jobs and provide $140 million in annual premiums to area farmers.
The Phelps County Development Corporation, DG Fuels, and Nebraska BioEconomy hosted the Town Hall meeting. Speakers explained the project and answered questions from the audience about housing, construction timelines, and the effects on local natural resources.
AGRICULTURAL BENEFITS
PCDC Board President Shane Westcott praised local ag producers as some of the best in the world, making Phelps County the perfect location for this project.
“It has the potential to have a positive economic impact for multiple generations, Westcott said. “Our kids have opportunities to have good paying jobs to stay home for or come back to.”
He emphasized the importance of protecting Phelps County’s “natural resources, our people, our water, and our land” throughout the project.
He also assured local farmers that “everyone will receive an equal opportunity to participate in this project.”
Julie Bushell, head of Nebraska BioEconomy and owner of GSD Partnership, said her dream is that someday when airplanes fly over the nation, the crew will proudly announce that the plane is fueled by the hard-working Nebraska farmers who grow the corn for the Sustainable Aviation Fuel that’s fueling the flight.
“I’m a firm believer that it’s time for agriculture to take the power back,” Bushell said. “The world is demanding bio-based products, and they cannot do that without farmers and ranchers, and it’s our time.”
DG Fuels CEO Mike Darcy said Phelps County farmers are “some of the most efficient growers of corn stover in the country as far as I can tell. That’s why I’m here. I need carbon feedstock. That comes from corn stover.”
The facility will turn 97% of the carbon in the corn stover directly into SAF with no additional blending or additives needed. It will likely be shipped to Omaha and Chicago airports. He assured participants that the demand for SAF far outweighs the supply.
DG Fuels will pay farmers an estimated $150 a dry ton for corn stover.
“Your success in agriculture means being able to turn your relatively waste feedstock into a high-value product,” Darcy said. “That’s a win-win.”
He reminded attendees that he is building a $5 billion plant and is seeking long-term relationships with area farmers.
Westcott said that DG Fuels will only need about 25 percent of the existing corn stover from farmers in an eight-county area, leaving 75 percent for other purposes. The plant could easily expand that catchment area to 75 miles or more, which increases available stover exponentially.
ENVIRONMENTAL IMPACT
Nebraska BioEconomy selects partners carefully who value agriculture, and that have shared values. “We prioritize givers vs. takers who focus on protecting the people, land, and water,” Bushell said.
Darcy said the DG Fuels plant will produce less atmospheric emissions than a local hospital. No ash is produced or released into the air, and the water they use for processing does not return to the aquifer.
Exemplifying his commitment to the Nebraska BioEconomy directive of protecting the aquifer, Darcy mentioned his willingness to rail water in should he need to offset the demand on the aquifer. Collaboration between DG Fuels, Nebraska BioEconomy, NRDs, DNR, and the local community will generate the final plan to satisfy the project’s water requirements.
POWER SUPPLY
NPPD CEO Tom Kent said he is “excited about the project and the load growth that will come into the agricultural communities we serve.”
NPPD will partner with Southern Public Power District to plan for the power needs and power distribution for the project. He said NPPD already has hundreds of millions of dollars invested in upcoming projects to add new power generation in the state.
“We are not going to run out of power in Nebraska,” he said. “Public power works in partnership with our customers to ensure that we grow our facilities to serve your needs.”
DG FUELS CAREERS
Darcy said DG Fuels wants to “be a good partner with the community.”
He is looking to create careers, not just jobs. The Phelps County plant will offer salaries ranging from $62,000 for entry-level careers to $220,000 for chemical engineers. Darcy stated his first priority is to hire Nebraskans and build apprenticeship programs to support young Nebraskans’ paths to build careers at DG Fuels.
He said young workers in the petroleum industry want to work in renewable energy and will be excited to work for DG Fuels.
His company has already connected with Central Community College to start discussing educational partnerships. He also has connected with Phelps Memorial Health Center to collaborate on ensuring that medical services are available and are not strained. This may result in new services in the community, such as an urgent care clinic.
The company has pledged support and investment through its Community Benefits program that will be crafted from input gathered in the town hall meeting and through conversations with community leaders in the coming months.
HOUSING
Construction on the DG Fuels plant is expected to start in 2026 and be complete in late 2029 or early 2030. At the beginning, about 800 construction workers will be needed, and that number will peak at 2,300.
Darcy said he is working with local officials to facilitate housing for both temporary construction workers as well as permanent family homes. Housing will be distributed throughout the entire county.
“I cannot attract the labor force to run these facilities unless they have a place to live,” Darcy said.
CONSTRUCTION TIMELINE
While the project is proceeding forward at this time, Darcy said a final investment decision depends on several factors and could happen in late 2025 or early 2026.
PCDC Executive Director Ron Tillery said a location has been identified, but it has not yet been announced. “We do believe it is a really good site for this project, yet there are still several boxes to check before announcing an exact location,” Tillery said.
Speakers said that this Town Hall meeting will be the first of many to continue to keep the community updated on the progress and to answer any questions or concerns.
For more information, call Tillery at PCDC at (308) 995-4148 or email ron@phelpscountyne.com.
Press release provided by the the Phelps County Development Corporation.
