INEOS Acetyls is partnering with Sandpiper Chemicals to build a low carbon methanol facility in Texas City, Texas. The project aims to produce 1.1 million metric tonnes of methanol annually using natural gas combined with carbon capture technology to reduce emissions. The facility targets a 97% carbon capture rate for process CO2. With a total investment of $1.7 billion, the project is scheduled for a final investment decision in 2027, with full operations expected to begin by 2030.
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INEOS is taking a stake in a new $1.7bn methanol plant in Texas. It uses gas plus carbon capture to hit lower carbon intensity. Worth a look for those tracking industrial CCS scale.
2030 is a long way off for first production. The real question is the CCS infrastructure. Does Sandpiper have the pipeline capacity and storage permits locked in, or is this just a paper plan for now?
Using an existing site in Texas City makes sense for labor and port access. It beats building a greenfield site from scratch, but integrating CCS into old infrastructure always adds hidden costs.
The economics here likely hinge on 45Q tax credits. Without those subsidies for carbon sequestration, a $1.7bn spend on low carbon methanol is a hard sell compared to standard grey methanol.
