SunGas halts $2B Pineville biofuels plant citing slow low-carbon fuel demand and regulatory uncertainty

SunGas Renewables has abandoned its Beaver Lake Biofuels project in Pineville, Louisiana, a nearly $2 billion facility that would have produced low-carbon methanol for maritime and aviation fuel. The company cited slow market adoption of low-carbon marine fuels, uncertainty around the carbon capture and storage pathway, and unclear regulatory support and financing conditions. The decision came less than a day after more than 200 residents rallied against the plant over safety, environmental, and land seizure concerns. SunGas CEO Robert Rigdon stated the company still believes low-carbon methanol can decarbonize shipping and aviation, but said the current conditions are not in place to move the project forward. The project was announced in July 2023 and was expected to create over 1,000 construction jobs and more than 100 permanent positions. The halt highlights ongoing challenges for low-carbon fuel projects, including regulatory risk, community opposition, and financing hurdles.