Sustainable fuel producer Pathway Energy has announced the location of its first commercial-scale sustainable aviation fuel (SAF) facility. Construction on the $2 billion plant—which is expected to produce 30 million gallons of pure, neat SAF annually by 2029—will commence in Port Arthur, Texas, in 2026.

According to the company, its ultra-carbon-negative fuel produced via the Fischer–Tropsch process will achieve a 550% reduction in carbon compared to conventional jet-A.

The company intends to use wood pellet feedstock—a sustainable global commodity sourced via a strategic partnership with biomass provider Drax Global—which will be gasified to produce SAF.

“We saw the opportunity to provide carriers a pathway to completely decarbonize their flights with our net-zero blended fuel,” added Joshua Pearson, Pathway Energy’s chief technology officer. “This is a new type of SAF production that is seven to nine times more carbon negative than the SAF on the market today and represents the most sustainable, cost-efficient and derisked path to decarbonize global aviation, long term.”

By selecting Port Arthur, the company will also have access to geological carbon sequestration, to further improve its fuel’s carbon intensity score, in addition to existing oil and gas infrastructure offering industrial-scale import and export via road, rail, barge, and pipeline. “One of the reasons we decided to site our facility in Texas is the proximity to the companies advancing carbon sequestration development,” Pathway CEO Steve Roberts told AIN. “In Port Arthur, we will have access to three different storage platforms within 50 miles of our facility.”