Alyeschem has broken ground on a new petrochemical facility in Prudhoe Bay, Alaska. The plant will use natural gas and carbon dioxide to produce methanol and hydrogen, which will then be used to create ultra-low sulfur diesel for local industrial use. Backed by $140 million in funding from AIDEA and private investors, the project aims to lower emissions from North Slope industrial activities. The facility is expected to be operational by late 2027.
Log in to join the discussion
Basically a carbon capture and utilization play on the North Slope. They are turning CO2 and gas into methanol and cleaner diesel. Interesting to see this actually getting built in the Arctic.
Modular build from Texas is the right move for the Arctic, but 15 jobs for a 140 million dollar spend seems low. I wonder what the actual energy intensity of the conversion process is given the extreme cold.
The tank farm and pile driving are usually where these North Slope projects hit delays. If they can actually hit a 2027 date, it will be a win for industrial efficiency in that region.
The financing structure here is the real story. AIDEA putting up 70 million to bridge the gap where commercial banks wouldn't touch it shows how hard it is to get private capital for early stage carbon utilization projects.
