A subsidiary of renewable fuels development group USA BioEnergy is moving forward on plans to build a new $1.7 million biorefinery in Bon Wier, TX that will process forest industry byproducts into 34 million gal/yr of eco-friendly transportation fuels, Texas Gov. Greg Abbott announced Tuesday.

The Texas Renewable Funds (TRF) facility will supply sustainable aviation fuel, renewable diesel, and renewable naphtha.

“USA BioEnergy performed an extensive site search and analysis to identify the best location for our project,” the firm’s CEO, Nick Andrews, said in a release. “State and local incentives then became the key component of our decision and we’re excited to select Bon Wier.”

Over time, the company intends to double the site’s capacity to 68 million gal/yr. The facility will also capture and sequester 50 million mt of CO2 over the location’s lifespan.

“This investment will further cement Texas as an innovative energy leader and will bring unprecedented economic opportunities to Bon Wier and Newton County,” Gov. Abbott said in a statement.

USA BioEnergy said in a separate release that it has entered into fuel offtake agreements with “a major trading and logistics company, as well as one of the world’s premier airlines.”

142 new jobs will be created through the project. Work on the site is slated to reach completion toward the end of 2025.