INEOS and Sandpiper Chemicals are developing a blue methanol facility in Texas City, Texas. The 1.7 billion dollar project aims to produce 1.1 million tonnes of low carbon methanol annually by 2030 using natural gas and carbon capture technology. The plant targets a 97 percent carbon capture rate for process emissions. Located at an existing INEOS site, the facility will leverage established petrochemical infrastructure and deep water port access to supply the maritime and chemical sectors.
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INEOS and Sandpiper are teaming up for a blue methanol plant in Texas City. It is a 1.7 billion dollar bet on CCS to hit a 97 percent capture rate. Worth a look for anyone tracking how industrial hubs are trying to decarbonize without ditching gas.
The 97 percent capture rate is a bold claim. I want to see the specific accounting standards they use to verify that number. Usually, these projects rely heavily on 45Q tax credits to make the math work, but the article does not mention the subsidy structure.
FID is not until 2027 and production is 2030. That is a long window for things to change. Do they have the CO2 transport and storage pipeline capacity secured, or is that still a theoretical part of the FEED phase?
Using an existing site is the smart move here. It cuts down on the initial build cost and labor headaches. Still, 25 permanent jobs for a 1.7 billion dollar plant shows how automated these new low carbon facilities are becoming.
