$8B Louisiana SAF Megaproject Clears Engineering Hurdle

DG Fuels just landed a major engineering contract that puts its Louisiana sustainable aviation fuel facility on a clear path to production. The company tapped Samsung E&A for front-end engineering design work on the hydrogen and power systems, a $15.7 million deal that could lead to a much larger $3 billion EPC award.

The St. James Parish project has grown from its original 120 million gallon capacity to 200 million gallons per year, making it what would be the largest Fischer-Tropsch SAF plant planned globally. With a final investment decision targeted for Q3 2026 and commercial production expected by 2028, this $8 billion megaproject represents a significant step forward for North American clean fuel infrastructure.

Samsung E&A Takes the Lead on Hydrogen Systems

The FEED contract covers a 10-month engineering study for the facility's blue hydrogen and green hydrogen production systems. Samsung E&A will design the air separation unit, autothermal reformer, and carbon dioxide capture infrastructure for blue hydrogen production. The scope also includes green hydrogen systems based on water electrolysis technology.

The Korean engineering firm will collaborate with Black & Veatch, which serves as the main contractor and overall system integrator. Both companies are already in preliminary discussions about extending their partnership to follow-on projects in Minnesota and Nebraska, where DG Fuels is planning similar synthetic fuel facilities.

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The facility sits along the west bank of the Mississippi River, giving it access to existing pipelines, port infrastructure, and a skilled local workforce. DG Fuels will use locally sourced agricultural and biowaste feedstocks, including sugarcane waste (bagasse), timber, and other plant materials to produce drop-in jet fuel.

A Hybrid Approach to Hydrogen Production

What makes this project particularly interesting is its dual hydrogen strategy. The blue hydrogen component uses natural gas reforming paired with carbon capture and storage to sequester CO2 underground. The green hydrogen side relies on large-scale electrolyzers powered by renewable energy, delivering zero-carbon H2 when renewables are available.

Both hydrogen streams feed into a gasification train that transforms agricultural and forestry waste into syngas, which is then converted to synthetic kerosene using Johnson Matthey and bp's co-developed Fischer-Tropsch CANS technology. The company claims its patented high carbon conversion approach targets 97% efficiency with near-zero lifecycle CO2 emissions.

Airlines Already Locked In

Perhaps the most telling sign of confidence in this project is its offtake situation. Delta Air Lines, Air France-KLM, and other major carriers have contracted for 100% of the facility's initial production capacity. This demand certainty significantly de-risks financing, and the growing momentum around carbon capture has attracted global attention, with Airbus also signing on as a strategic partner.

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What Comes Next for Gulf Coast Clean Fuels

Samsung E&A's involvement marks its full-scale entry into the North American SAF market, building on a KRW 1.4 trillion SAF order secured in Malaysia last year. For the Korean firm, successful FEED completion positions them for a potential $3 billion EPC contract that would cover construction of the hydrogen and power generation systems.

The project benefits from favorable federal incentives, including SAF tax credits under U.S. climate law. As hydrogen infrastructure continues expanding across the Gulf Coast, Louisiana is positioning itself as a clean fuels hub capable of supplying both domestic and international markets. If FEED wraps on schedule and FID follows in late 2026, this facility could cement the region's reputation as a leader in sustainable aviation fuel production.