Lawmakers introduce bill to “revitalize” Northwoods forestry

Republican lawmakers announced a new bill Monday morning to “revitalize” the forest industry in the Northwoods. The bill would give state tax credits and bonding to build a production plant in Hayward to turn woody biomass into aviation fuel. 

“This is a big day for Northern Wisconsin- we’re looking at over $1 billion in annual economic impact and over 350 high-paying, local jobs, all while bolstering our forestry industry,” says Sen. Felzkowski, one of the bill’s authors.  

The measure would direct $60 million in WEDC tax credits and $150 million in state bonding through the forestry account to help finance the facility. The project would be a partnership between Wisconsin-based Johnson Timber and German energy company Synthec Fuels.

Lawmakers say the effort would boost the economy while supporting forest management. They pointed to reduced wood harvest levels since the 2020 closure of the Wisconsin Rapids paper mill.

“With less wood being processed, harvests are down, and our forests are not being maintained as they should – which can have the long-term effect of unhealthy forests and a greater possibility of large-scale forest fires,” wrote Felzkowski in a co-sponsorship memo. 

Under the bill, at least 80 percent of the wood used in the Hayward facility would need to be sourced from Wisconsin. Supporters say the plant would convert 880,000 tons of wood residue into 48 million gallons of biofuel annually.

Lawmakers also signaled urgency, noting competition from neighboring states to land the first plant and headquarters for the project.

“To fund this facility, the company is prepared to spend ~$1.5 billion to fund the construction and startup of this site, but they have asked for support from the state in the form of a $210 million investment,” according to the same memo.

Lawmakers said they have discussed the plan with Gov. Tony Evers, who has not indicated whether he would sign the bill if it reaches his desk.

If approved, full production would begin in 2029.

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