Sustainable aviation fuel (SAF) company DG Fuels said it will build its first Midwestern production plant in Phelps County, Nebraska, where it will produce 193 million gallons of zero or low carbon dioxide (CO2) lifecycle emissions SAF annually.

The production plant deal, according to DG, was helped along by the Nebraska BioEconomy strategic initiative, which has the goal of turning the state into a major player in the United States' bioeconomy sector, which includes using cellulosic biomass from agricultural byproducts like corn stover as its carbon feedstock. The company also uses different types of clean hydrogen feedstock to make its near-zero carbon fuel.

DG's project is poised to boost local on-farm income by millions of dollars, the company said.