Years in the Making: $2.8B Bon Wier Biofuel Plant Moves Forward With New Partners

Photos courtesy of USA BioEnergy

USA BioEnergy CEO Nick Andrews stands at the Bon Wier site where the company plans to build a $2.8 billion biofuel refinery.

BON WIER, Texas — A biofuel project that’s been on Newton County’s radar for more than three years is continuing to move forward, with land secured, new technology partners announced, and promises of jobs and economic growth for the community.

USA BioEnergy, through its subsidiary Texas Renewable Fuels, plans to build a $2.8 billion advanced biorefinery on the site of the former Louisiana-Pacific plywood mill along Farm to Market Road 363 in Bon Wier. The facility is designed to convert forest byproducts — including sustainably sourced wood waste and thinnings — into low-carbon fuels such as renewable naphtha and sustainable aviation fuel (SAF).

A Project Years in the Making

The project was first unveiled in early 2022, when Governor Greg Abbott announced a proposed $1.7 billion investment with the promise of more than 140 permanent jobs.

On Feb. 5, 2025, USA BioEnergy finalized its purchase of more than 1,600 acres in Bon Wier, securing the land needed for the refinery. Company officials said the site selection was intentional, transforming an idle plywood mill property into a modern clean energy operation.

Since its announcement, the company has also expanded the scope of the refinery and signed a 20-year offtake agreement with Southwest Airlines for up to 680 million gallons of SAF.

Company leaders say the facility will ultimately be capable of producing between 34 million and 65 million gallons of renewable fuels annually, depending on the final design.

New Partnerships, Same Goal

This week, USA BioEnergy confirmed that Honeywell’s Experion® PKS control system will be implemented at the Bon Wier plant, with Johnson Matthey also named among the technology collaborators. Both companies are recognized internationally for their roles in refining and advanced fuels production.

“By utilizing forest thinnings for bioenergy production with carbon capture and sequestration technologies, our integration with technology providers like Honeywell will help us create a fully integrated, alternative fuels solution,” said Nick Andrews, CEO of USA BioEnergy.

Local Support and Economic Impact

The project is receiving approximately $150 million in state, county, and federal credits and tax incentives. Local support has come from organizations including the Texas Forest Country Partnership, Texas Forestry Association, the City of Newton, Newton County, Newton ISD, Jasper County, the Sabine River Authority, and the Texas Economic Development and Tourism Office of the Governor.

“This advanced-fuels facility development milestone underscores USA BioEnergy’s commitment to the future of aviation and energy security,” Andrews said in a February statement. “We also appreciate the opportunity to create good-paying jobs in Newton County, Texas, which has one of the lowest per capita incomes in the state. We are proud this project is a win-win-win for the area, the industry, and our business objectives.”

Once operational, the plant is expected to employ roughly 200 people full-time, in addition to several hundred construction jobs during the build-out phase. Officials say the facility would also provide a new market for East Texas forestry byproducts, which are abundant in Newton and surrounding counties.

What’s Next

Despite the land purchase and new technology partnerships, construction has not yet begun. USA BioEnergy says engineering and design work is ongoing, with the build expected to take about two years once shovels are in the ground. Full operations are not projected until 2028 or 2029.

For now, the project remains a mix of anticipation and waiting. “Progress is moving forward as we continue through the planning phase,” Andrews said.