SunGas Renewables Inc., a GTI Energy spin-off located in Texas, has founded Beaver Lake Renewable Energy, LLC (“BLRE”) to construct a new green methanol manufacturing facility in Central Louisiana.
BLRE, a wholly-owned subsidiary of SunGas Renewables, is planned to create roughly 400,000 metric tonnes of green methanol per year for marine fuel.
SunGas Renewables anticipates BLRE will invest approximately $2 billion to construct the project at the former International Paper facility in Rapides Parish.
Green methanol generated by BLRE is anticipated to be used to fuel A.P. Moller – Maersk’s fleet of methanol-powered containerships, with wood fibre sourced from locally managed forests.
The methanol will reportedly have a negative carbon intensity since it will sequester roughly a million tonnes of carbon dioxide created by the project, which will be carried out by Denbury Carbon Solutions.
The BLRE facility is expected to begin construction in late 2024 with commercial operations commencing in 2027.
John Bel Edwards, Governor of Louisiana, said: “As the only state in the Gulf South with a climate action plan, Louisiana is a global leader in the energy transition, and companies like SunGas Renewables have taken notice.
“I applaud SunGas Renewables for pursuing this massive investment that would create quality, high-paying jobs in central Louisiana for our talented workers.
“If it moves forward, this project will be another milestone in our efforts to grow and diversify our economy. The state will continue to support the company’s efforts to bring it to completion.”
Emma Mazhari, Head of Energy Markets at Maersk, added: “Maersk is excited to be partnering with SunGas Renewables, which is pioneering a truly large-scale pathway to green methanol with its Beaver Lake Renewable Energy facility.
“This is helping Maersk to deliver valuable services to our customers and is aligned with our aim to reach net zero greenhouse emissions by 2040. Together, as pioneers in the field, SunGas and Maersk are driving a much-needed transition in a heavy pollution industry. We hope that work can be accelerated further in the years to come.”
The BLRE project is SunGas Renewables’ first plant to produce green methanol for Maersk.