Wisconsin Authorizes $120M Tax Credit for $1.5B SAF Biorefinery Project

Wisconsin Governor Tony Evers has signed into law the Forestry Revitalization Act, authorizing $120 million in state tax credits to support a proposed $1.5 billion biorefinery. The facility, to be located in Hayward, is designed to convert woody biomass into Sustainable Aviation Fuel (SAF), positioning the state as a key player in the growing market for alternative aviation fuels.

The project is being developed by Germany-based Synthec Fuels in partnership with Johnson Timber. The legislation provides crucial financial incentives intended to attract the significant private investment and revitalize the state's forestry sector. According to Governor Evers, the bipartisan bill will create hundreds of high-paying jobs while leveraging Wisconsin's natural resources to advance aviation decarbonization.

Project Details and Economic Impact

The planned biorefinery represents a significant industrial development for northern Wisconsin. Once operational, the facility is projected to convert approximately 880,000 tons of woody biomass into 48 million gallons of SAF annually. This creates a new, stable market for low-value wood products, which is expected to support the regional forest products industry following recent mill closures.

The project's economic benefits are substantial, with projections indicating the creation of up to 350 direct jobs at the facility and support for an estimated 2,000 indirect jobs in logging, transportation, and related services. The Wisconsin Economic Development Corporation (WEDC), the state's lead economic development agency, will be responsible for administering the Enterprise Zone Tax Credits and certifying that the project meets its investment and job creation targets.

Legislative and Regulatory Framework

The enabling legislation, officially known as 2025 Wisconsin Act 164, sets specific conditions for the project. To ensure benefits remain within the state, the law mandates that at least 80% of the wood feedstock used during the facility's first five years of operation must be sourced from within Wisconsin. Synthec Fuels must also submit a comprehensive third-party feasibility study and business plan to the WEDC for approval before the tax credits are finalized.

The fuel produced must meet international standards to be viable on the global market. Specifically, the woody biomass feedstock must be qualified under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), an initiative by the International Civil Aviation Organization. This certification is critical for the facility's primary customers, who will use the SAF to comply with international emissions reduction mandates, most notably the European Union's ReFuelEU Aviation regulation. This EU mandate requires a progressively increasing blend of SAF at European airports, creating strong and predictable demand for the Hayward plant's output.

Industry Context and Precedents

The Wisconsin project aligns with two major industry trends: the shift toward Waste-to-Liquid (WtL) SAF production and the rise of state-level incentives to attract green energy investments. By using forestry residue, the project avoids the food-versus-fuel debates associated with crop-based biofuels. It also places Wisconsin in direct competition with neighboring states like Minnesota and Michigan, which are also developing incentives to attract similar biorefinery projects.

Historical precedents for such large-scale alternative fuel projects offer mixed results. The successful launch of the LanzaJet Freedom Pines Fuels biorefinery in Georgia in January 2024, the world's first commercial ethanol-to-SAF plant, demonstrated that public-private financial partnerships can effectively scale new production pathways. However, the experience of the Fulcrum BioEnergy Sierra BioFuels Plant in Nevada, which faced significant operational and financial hurdles after its 2022 launch, highlights the inherent risks in scaling novel waste-conversion technologies.

Technical Analysis

This development is a clear example of state-level industrial policy aimed at capitalizing on the global energy transition. By providing substantial tax incentives, Wisconsin is making a calculated bid to anchor a key part of the future SAF supply chain. The project's success will largely depend on Synthec Fuels' ability to manage the complex logistics of sourcing and processing nearly one million tons of biomass annually and maintaining high operational uptime, a challenge that has hindered previous waste-to-fuel projects. If successful, the Hayward facility will serve as a crucial proof-of-concept for leveraging regional forestry economies to meet international aviation decarbonization goals, potentially creating a model for other timber-rich regions.

What Comes Next

With the legislation now signed, several key milestones lie ahead. Synthec Fuels is expected to submit its detailed third-party feasibility study and business plan to the WEDC for certification between 2026 and 2027. Following regulatory approvals and construction, the company aims to have the biorefinery fully operational by 2029. This timeline positions the facility to supply the market just as the ReFuelEU Aviation mandate escalates, with the required SAF blending percentage at EU airports set to increase to 6% in 2030.

Why This Matters

For the aviation industry, the Wisconsin project represents a vital step in diversifying the SAF feedstock supply chain, reducing reliance on agricultural sources and expanding the availability of advanced biofuels. The project serves as a test case for how state governments can partner with private industry to build domestic energy capacity while revitalizing traditional sectors like forestry. Its success or failure will offer important lessons for future SAF investments across North America.