New Energy Blue and ARCO/Murray team up to build New Energy Freedom biomass refinery

In Pennsylvania, New Energy Blue and ARCO/Murray announced a partnership to build out the New Energy Biomass Refinery designed platform across the American Midwest.

ARCO/Murray will construct the flagship New Energy Freedom biomass refinery in Mason City, Iowa, to sustainably process corn stalks into second-generation fuel ethanol and clean lignin at large commercial capacity. The partners have agreed to a $650 million construction contract. In 2023, New Energy Blue completed the design engineering, obtained local permits to proceed, and conducted field trials of new harvesting methods and machinery; in 2024, the project entered the final investment decision (FID) phase. The partners plan to break ground later this year and start up the refinery in 2026.

The significant economic impact anticipated is comparable to that typically seen with first-generation ethanol facilities. In Iowa, the state responsible for approximately one-quarter of U.S. production, the industry contributes about $8 billion to household incomes annually and 100,000 indirect and induced jobs. The construction of the Freedom refinery in Mason City is projected to generate between 400 and 500 high-paying construction positions over a 20-month period. Refinery operators and feedstock suppliers from New Energy Farmers aggregation team will hold about 70 permanent jobs carrying an annual payroll of $7 million. The economic ripple effects will likely support another 5,000 jobs. Local corn growers stand to benefit by not only selling their excess corn stalks to the refinery but also participating in profit-sharing through the New Energy Farmers business unit.