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Dive brief:
- Lake Charles Methanol plans to build a $3.24 billion chemical manufacturing facility at the Port of Lake Charles, Louisiana, the state’s economic development agency announced Wednesday.
- The upcoming facility will produce 3.6 million tons of low-carbon or renewable methanol, as well as other chemicals.
- The plant is expected to create 728 jobs in the surrounding region, including 123 direct positions with an estimated average salary of $135,955. A final investment and construction start date is expected in mid-2024, with production planned for late 2027.
Diving knowledge:
Lake Charles will use automatic thermal gas reforming technology and carbon capture to produce low-carbon hydrogenwhich will become to methanol. The process will transform natural gas and renewable gas feedstocks into hydrogenaccording to the statement.
Lake Charles plans to work with a third party to capture and sequester about one million metric tons of carbon dioxide a year, but did not specify which partner it plans to work with.
Methanol is used to produce a variety of products and materials, including plastics, coatings, automotive electronics, foam materials, inks, paint, adhesives, putty, and rubber tires.
The Lake Charles project is part of the chemical maker’s strategy to produce low-carbon methanol, called “blue methanol,” which leverages clean carbon and hydrogen capture processes to avoid the release of greenhouse gases greenhouse
“The project will deliver substantial tangible economic benefits to local communities while providing an environmentally beneficial blue methanol product to facilitate the transition to low carbon fuels and chemicals.” Donald Maley, President and CEO of LCM he said in a statement.
In addition to the upcoming manufacturing positions, the project is expected to create up to 2,300 construction jobs.
The creation of the Lake Charles project has been several years in the making. In 2016, the Department of Energy committed up to $2 billion to the chemical maker’s low-carbon methanol facility. The funding was part of the department’s Advanced Fossil Energy Project, aimed at boosting domestic production of advanced fossil energy that can reduce, avoid or sequester greenhouse gases.
