U.S. Continues to Develop Methanol Capacity, Sees $12.5 Billion in Related Projects
Researched by Industrial Info Resources (Sugar Land, Texas)--Methanol projects slowed during 2020, as a result of the chemical's common derivatives demand being affected by the hard-hit automotive and construction industries. But Industrial Info is tracking 21 active methanol projects in the U.S., worth almost $12.5 billion, that account for nearly 14.7 million metric tons per year of installed or planned methanol capacity.
Methanol is used as a feedstock to produce chemicals such as acetic acid and formaldehyde, which in turn are used in products such as adhesives, foams, plywood subfloors, solvents and windshield washer fluid, according to Methanex Corporation (NASDAQ:MEOH) (Vancouver, British Columbia). Methanol-based fuels feature reduced carbon monoxide, nitrogen oxides and hydrocarbon emissions, when compared with conventional gasoline and other fossil fuels, making them especially attractive at a time when industrial and transport sectors are aiming to be carbon-neutral.
Grassroot projects account for the majority of activity, and Louisiana is home to more than half of the total spending, with almost $7 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a full list of projects.
Lake Charles Methanol's (Houston, Texas) $2.5 billion grassroot petroleum coke-to-methanol plant in Westlake, Louisiana, is in the late planning stage. The plant would include a gasification system to process petroleum coke into 1 million metric tons per year of methanol, 400,000 tons per year of sulfuric acid and 60 million cubic feet per day of gases, as well as a carbon capture system for the storage of unused carbon dioxide byproduct. Construction could begin as early as February 2022. Subscribers can click here for Industrial Info's project report.
Also in the Pelican State, YCI Methanol expects to complete a $1.5 billion grassroot methanol plant in Saint James in June. The plant will have a capacity of 1.7 metric tons per year. The methanol primarily will be exported by sea to China, but 20% to 30% of total production is to be shipped by barge and rail to North American customers. A second-phase unit addition will add an additional 1.2 million metric tons per year of capacity and could kick off in June 2023. See Industrial Info's project reports for the grassroot plant and second-phase addition.
US Methanol LLC's (Aliso Viejo, California) $200 million Liberty One Methanol Plant in Institute, West Virginia, is planned for completion in mid-December, after construction resumed in September following a delay due to COVID-19 and other concerns. The company plans to update and modify an idled, 175,000-metric-ton-per-year plant with new reformers, a synthesis unit, a distillation unit and eight storage tanks. Click here for Industrial Info's project report.
According to a joint study by the International Renewable Energy Agency (IRENA) (Abu Dhabi) and The Methanol Institute (Washington, D.C.), global methanol production has nearly doubled in the past decade, and "under current trends, production could rise to 500 metric tons per year by 2050," the report added.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.