Council approves option agreement allowing DG Fuels to pursue sustainable aviation fuel site west of Moorhead airport

The Moorhead City Council voted to enter an option agreement with DG Fuels that gives the company site control of a parcel of city-owned land west of the Moorhead Airport while it pursues due diligence and federal funding applications for a sustainable aviation fuel project.

Economic development staff described the site as 554 acres immediately west of the airport and said the proposal is part of DG Fuels' federal application process to the U.S. Department of Energy and related tax-credit programs. Derek Lapointe told the council the project would require extensive due diligence and coordination with Moorhead Public Service, Missouri River Energy, the state of Minnesota and other regional partners. "This again is a substantial project with lots of time and consideration," Lapointe said. He described the option agreement as a low- to mid-risk first step to allow DG Fuels time to pursue applications and assessments.

Council discussion was limited to clarifying questions; no amendments to the option agreement were introduced during the council motion. Councilmember Heather Niesmeyer moved to approve the option agreement; Councilmember Emily Moore seconded and the motion passed unanimously.

Staff said the agreement does not itself approve construction or permitting; the option secures site control while DG Fuels continues federal application work and local due diligence over the next 12 months.