Legislature Approves Incentives for Hayward Biofuel Plant

The Wisconsin Legislature has approved a bill that could bring a new sustainable aviation biofuel plant to Hayward.

The Forestry Revitalization Act passed the State Senate last Tuesday on a 31 to 2 vote, after clearing the Assembly last month 94 to 5.

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

The legislation would offer up to 120 million dollars in tax credits for a facility that would turn woody biomass into sustainable aviation fuel (SAF). At least 80 percent of the wood used during the first five years would need to come from Wisconsin. The project is a partnership between German company Synthec Fuels and Johnson Timber of Hayward, with most of the fuel expected to be exported to Europe.

Supporters say the project could give a major boost to northern Wisconsin’s forestry industry. In a press release, Sen. Romaine Robert Quinn (R-Birchwood) wrote, “I am incredibly pleased that this legislation got across the finish line. This will fundamentally change the trajectory of the forestry industry in this state – raising the value of timber, improving forest health, and bolstering 2,000 jobs across Northern Wisconsin.”

The version of the bill approved by lawmakers is an amended version of the original proposal introduced last fall. It removes a plan to include $150 million in state bonds and instead doubles the tax credits from $60 million to $120 million.

To qualify for the incentives, developers would need to submit a business plan to the Wisconsin Economic Development Corporation, along with letters of intent from suppliers, investors, and buyers. A third-party feasibility study is also required. Johnson Timber President Bill Johnson said during a recent Sawyer County committee meeting that the study is already underway.

The proposal also has support from the Wisconsin Council on Forestry, which recently sent a letter to the governor backing the plan.

The bill now heads to the desk of Governor Tony Evers for final approval.