Lake Charles Methanol announces plans for $3.2B manufacturing plant

Courtesy Port of Lake Charles

Lake Charles Methanol II LLC announced plans last week to invest $3.24 billion to construct a manufacturing plant that will produce low-carbon intensity methanol and other chemicals at the Port of Lake Charles.

The company plans to use advanced auto thermal gas reforming technology and employ carbon capture and secure geologic storage to produce low-carbon hydrogen for conversion to methanol.

If the project moves forward as outlined, the company expects to create 123 direct new jobs in Calcasieu Parish at an average annual salary of 135,955, according to Louisiana Economic Development.

The proposed facility would reform natural gas and renewable gas feedstocks into hydrogen, while capturing carbon dioxide, which would then be used to produce about 3.6 million tons per year of methanol. Lake Charles Methanol plans to work with a third party to capture and sequester about 1 million metric tons of carbon dioxide per year, which would reduce the carbon intensity of the hydrogen for synthesis into low carbon intensity methanol.

The project is currently undergoing a FEED study and regulatory permitting. A final investment decision and start of construction are expected in mid-2024.

To secure the project in Louisiana, LED offered a competitive incentives package that includes LED FastStart and a $5 million performance-based grant for infrastructure needs. The company is also expected to participate in Louisiana’s Industrial Tax Exemption and Quality Jobs programs. See the announcement.