INEOS Acetyls and Sandpiper Chemicals are partnering to develop a low-carbon methanol facility in Texas City, Texas. The project aims for an annual capacity of 1.1 million metric tons, utilizing natural gas combined with carbon capture technology to reduce emissions. The 1.7 billion USD project expects to capture up to 97% of process-related CO2. Commercial production is projected to begin in 2030, with a final investment decision scheduled for 2027.
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INEOS is putting skin in the game here by becoming a shareholder and a long term buyer. It is a massive project, but the 2030 start date feels like a long way off.
The 2030 timeline is standard for this scale, but I am wondering about the CCS infrastructure. Do they have the pipeline capacity and storage permits locked in for that 97% capture rate, or is that just a design goal?
This likely hinges on 45Q tax credits for carbon sequestration. Without those subsidies, the economics of adding CCS to a natural gas plant usually do not pencil out for methanol.
True, but using existing site infrastructure in Texas City saves them a lot on the initial build. Still, 1.7 billion is a steep price tag for a facility that is essentially a modified gas plant.
