Wisconsin Enacts Legislation to Back $1.5B SAF Biorefinery Project

Wisconsin has taken a significant step to position itself as a key player in the domestic production of Sustainable Aviation Fuel (SAF), with Governor Tony Evers signing new legislation to support the development of a major biorefinery. The bill, known as the Forestry Revitalization Act, authorizes $120 million in tax credits to facilitate a $1.5 billion private investment in a new facility that will convert woody biomass into aviation biofuel.

The legislation, formally designated as Assembly Bill 619, enables the creation of a specialized aviation biofuel manufacturing zone. This economic tool will be administered by the Wisconsin Economic Development Corporation (WEDC), which is now authorized to certify one biofuel business to receive the substantial tax incentives. The project, a joint effort by Synthec Fuels and Johnson Timber, will be located in Hayward, Wisconsin, and is expected to become a cornerstone of the state's green energy strategy and a significant economic driver for its rural communities.

Legislative Details and Incentives

Under the provisions of 2025 Wisconsin Act 164, the WEDC can establish an enterprise zone and award up to $120 million in tax credits starting after December 31, 2025. A key stipulation of the legislation is a commitment to local sourcing. The facility must source at least 80% of its woody biomass feedstock from within Wisconsin over a five-year period. This requirement is designed to directly benefit the state's forestry and timber industries by creating a stable, high-value market for mill residuals and standing dead timber, which have traditionally been lower-value products.

The bill received bipartisan support and was championed by industry groups including the National Business Aviation Association (NBAA) and its state-level partner, the Wisconsin Business Aviation Association (WiBAA). In a statement, Governor Tony Evers said, "This bipartisan legislation will create hundreds of high-paying jobs in rural communities, while positioning Wisconsin as a national leader in the production of sustainable aviation fuel." Kristi Ivey, Regional Director for the NBAA, added, "This bill helps make the U.S. a global leader in SAF production while also bringing new jobs to Wisconsin's rural communities."

Economic and Industry Impact

The project's impact extends across multiple sectors. For the state's forestry industry, it provides a crucial new revenue stream and supports the long-term health of forest management. For the state's broader economy, particularly in northern Wisconsin, the $1.5 billion investment is projected to create hundreds of direct manufacturing jobs and thousands of indirect jobs. The general aviation sector, which according to NBAA data contributes 26,700 jobs and $6.5 billion in economic output to Wisconsin, will also benefit from the local availability of SAF.

However, the project is not without its critics. The Wisconsin Council on Forestry has raised concerns that the heavily subsidized SAF plant could create intense competition for woody biomass, potentially leading to supply shortages and price increases for existing paper and pulp mills in the region.

The fuel produced at the Hayward facility will be qualified under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), making it eligible for export to international markets. This is particularly relevant given the European Union's ReFuelEU Aviation mandate, which will require 70% of all aviation fuel to be SAF by 2050, creating significant export demand.

National Context and Competition

Wisconsin's legislative action places it in direct competition with other states vying to attract SAF manufacturing. In 2023, Illinois enacted a $1.50 per gallon tax credit for SAF purchased by air carriers, while Minnesota established a similar $1.50 per gallon credit. Washington State passed its own legislation offering up to $2 per gallon for SAF production. These state-level incentives, designed to complement federal credits available through the Inflation Reduction Act, highlight a growing trend of using targeted industrial policy to build out the domestic SAF supply chain.

Woody Biomass SAF vs. Conventional Jet Fuel

The technology at the core of the Hayward project represents a distinct pathway for producing SAF. It will utilize a gasification and Fischer-Tropsch process to convert solid biomass into liquid fuel.

Technical Analysis

This development in Wisconsin is indicative of a maturing strategy for SAF production in the United States. Rather than relying on a single feedstock, the industry is diversifying into region-specific pathways that leverage local resources. The use of woody biomass aligns Wisconsin's established forestry sector with the future needs of the aviation industry. This model, which combines state-level enterprise zone incentives with federal tax credits, creates a powerful financial framework to de-risk massive capital investments like the $1.5 billion Hayward facility. The project's success could serve as a blueprint for other states with significant timber resources. Furthermore, by targeting CORSIA qualification from the outset, the project is strategically positioned not just as a domestic supplier but as a global exporter, capitalizing on aggressive international decarbonization mandates.

What Comes Next

With the legislation signed into law, several key milestones are anticipated over the next few years. The Wisconsin Economic Development Corporation is expected to formally certify the aviation biofuel manufacturing zone and the Synthec Fuels project sometime in 2026 or 2027. Following certification, groundbreaking for the Hayward facility is expected to occur within the same 2026-2027 timeframe. Synthec Fuels has targeted 2029 for the plant to reach full production operations.

Why This Matters

This legislation is more than a single infrastructure project; it represents a strategic alignment of state economic policy with global environmental goals. It provides a tangible model for revitalizing a traditional industry by connecting it to the high-tech, high-demand aviation decarbonization market. For the aviation industry, it marks another crucial step in diversifying the geographic and technical pathways for SAF production, which is essential for scaling supply to meet ambitious 2050 net-zero targets.