New Articles
  March 7th, 2024 | Written by

$3.24 Billion Methanol Plant Planned On Port Of Lake Charles Property

[shareaholic app="share_buttons" id="13106399"]

Lake Charles Methanol II LLC (Lake Charles Methanol) has unveiled plans to invest $3.24 billion in the construction of a state-of-the-art manufacturing plant at the Port of Lake Charles. The facility will specialize in producing low-carbon intensity methanol and other chemicals, utilizing advanced auto thermal gas reforming technology alongside carbon capture and secure geologic storage methods to ensure environmental sustainability.

The project is anticipated to generate 123 direct new jobs in Calcasieu Parish, with an average annual salary of $135,955, along with an estimated 605 indirect new jobs, totaling 728 potential new jobs in the Southwest Region. During the peak of construction, more than 2,300 jobs are expected to be created.

Governor Jeff Landry expressed his support for the project, emphasizing its potential to significantly boost the economy of the Southwest Region while creating high-paying jobs. Lake Charles Methanol aims to reform natural and renewable gas feedstocks into hydrogen while capturing carbon dioxide, resulting in approximately 3.6 million tons per year of methanol production.

The company plans to collaborate with a third party to capture and sequester around 1 million metric tons of carbon dioxide annually, thereby reducing the carbon intensity of the hydrogen used in methanol synthesis. President of Lake Charles Methanol, Don Maley, highlighted the project’s economic and environmental benefits, emphasizing its role in facilitating the transition to low-carbon chemicals and fuels.

Currently undergoing a FEED study and regulatory permitting, the project is expected to reach a final investment decision by mid-2024, with construction commencing shortly thereafter. Commercial operations are projected to begin in late 2027, following a three-and-a-half-year construction and commissioning period.

The project has received support from state and local officials, with LED offering a competitive incentives package, including workforce development solutions and a $5 million performance-based grant for infrastructure needs reimbursement. Lake Charles Methanol is also set to participate in Louisiana’s Industrial Tax Exemption and Quality Jobs programs.

George Swift, president and CEO of the Southwest Louisiana Economic Development Alliance, praised the project as a significant addition to the regional industrial base, highlighting its positive impact on job creation and economic growth. The collaboration between Lake Charles Methanol and the Port of Lake Charles reflects the region’s dedication to attracting and fostering innovative industrial projects.