Wisconsin Proposes $210M Incentives for Hayward Wood-to-Aviation Fuel Plant

Wisconsin lawmakers, led by Senate President Mary Felzkowski, are proposing legislation to incentivize the construction of a $1.9 billion plant in Hayward that would convert low-quality wood into sustainable aviation fuel (SAF), partnering with German company Synthec Fuels and Johnson Timber Corp. The bill, known as the Forestry Revitalization Act, proposes $60 million in tax credits and $150 million in bonding authority backed by the state forestry account to support the project, which aims to create 150 jobs and generate $1.2 billion annually after three years. The plant would source at least 80% of its wood from Wisconsin, with a preference for Wisconsin contractors, addressing a gap left by the 2019 closure of the Verso paper mill in Wisconsin Rapids. SAF is gaining importance as the European Union mandates increasing blends of such fuels to reduce carbon emissions, although the United States does not yet have similar requirements. Lawmakers emphasize that the incentives include clawback provisions to protect taxpayers if the project does not proceed as planned, and the state faces competition from Minnesota and Michigan for hosting the facility and its potential headquarters. Governor Tony Evers has expressed interest in the proposal but has not yet committed to signing the bill.