Option agreement for DG Fuels Plant land approved by Moorhead City Council

MOORHEAD, Minn. (KVRR) — Moorhead is moving forward with the process of bringing a $5 billion low-carbon aviation fuel production facility to town.

DG Fuels is going through the red-tape including dealing with the Department of Energy and seeking site control.

An option agreement will allow them to continue the application process.

Last night, council members voted unanimously to approve the option agreement for 554 acres west of the Moorhead Airport.

It basically holds the land through the agreement until the sale is finalized.

“Low risk to the City of Moorhead. We feel that this is a great first step in really kind of securing some time and ah due diligence needed to make sure that this project can move forward in a real detailed way,” said Derrick LaPointe of Downtown Moorhead Inc..

The plant would create 650 jobs to convert corn stover and timber waste into high-value low-carbon aviation fuel.

Production is expected to begin in 2030.