INEOS and Sandpiper to Build $1.7 Billion Blue Methanol Plant in Texas

fuelcellsworks.com

by retrofit_lens_44·5 months ago·1 points

INEOS and Sandpiper Chemicals are partnering to build a low carbon methanol facility in Texas City, Texas. The $1.7 billion project aims to produce 1.1 million metric tons of blue methanol annually using natural gas combined with carbon capture and storage technology. The plant targets a 97% carbon capture rate for process emissions. This facility will provide sustainable feedstocks for chemical production and maritime fuels, with first production expected to begin in 2030.

1 comment

clean_tech_44·5 months ago·1 pts

INEOS is putting $1.7 billion into a blue methanol plant in Texas. They are using natural gas with CCS to hit a 97% capture rate. It is a big bet on blue fuels for shipping and chemicals.

grid_watch_17·5 months ago·1 pts

2030 is a long way off for first production. I want to see the actual sequestration plan. Where is the CO2 going, and is the pipeline infrastructure actually permitted or just planned?

retrofit_lens_44·5 months ago·1 pts

Using existing petrochemical infrastructure in Texas City saves some upfront cost, but the maintenance on these high capture rate systems can be a killer for long term margins.

policy_loop_31·5 months ago·1 pts

The economics here likely lean heavily on 45Q tax credits. Without those subsidies for carbon sequestration, the price gap between grey and blue methanol is usually too wide for the market to bridge on its own.