Assembly clears bill to bring biofuel plant to Hayward

The Wisconsin Assembly has cleared a bill that could bring a new sustainable aviation biofuel plant to Hayward. The Forestry Revitalization Act passed 94 to 5 last Tuesday and now moves to the Senate.

The bill is co-authored by Rep. Chanz Green (R-Grand View) and Sen. Mary Felzkowski (R-Tomahawk). 

In a press release last Tuesday, Green wrote, “The Forestry Revitalization Act will breathe new life into Wisconsin’s forestry industry. This legislation not only revives Wisconsin’s timber markets after years of decline but also creates hundreds of high-quality jobs. By utilizing 80% Wisconsin-sourced wood, the project ensures a strong, homegrown market for loggers and foresters while encouraging better forest management practices that maintain long-term health and productivity for our forests.”

The legislation would offer up to $120 million in tax credits for a facility that turns woody biomass into sustainable aviation fuel (SAF). At least 80% of the wood used in the first five years would come from Wisconsin. The project would be a partnership between German-based Synthec Fuels and Johnson Timber of Hayward, with most of the fuel intended for European markets.

The Assembly also adopted a significant amendment to the version of the bill Green introduced earlier this month.

Originally, the proposal included $60 million in tax credits and $150 million in state bonds. The amendment eliminates the bonds and doubles the tax credits to $120 million. It also removes a requirement that the recipient of state incentives invest $1.5 billion in private funding to qualify.

To qualify for the incentives, the recipient must submit a business plan to the Wisconsin Economic Development Corporation detailing costs, target markets, financing, and purchase agreements. The recipient must also provide a third-party feasibility study evaluating the conversion technology, feedstock supply, cost competitiveness, and projected job creation.

When the bill was first introduced, Felzkowski said Wisconsin is competing with Michigan and Minnesota to host the new aviation biofuel plant.

Locally, the Sawyer County Board has already signaled support. County Administrator Mike Markgren says the project would be an economic boost to the area, and could provide hundreds of jobs in construction, logging, and trucking.

If the Senate approves the bill and Gov. Tony Evers signs it, construction could start as early as 2029.