Beaver Lake Renewable Energy to produce green methanol for Maersk marine fuel
SunGas Renewables has announced the Beaver Lake Renewable Energy (BLRE) subsidiary, which will build a green methanol production facility in Central Louisiana. The facility is expected to produce approximately 400,000 metric tons of green methanol annually for marine fuel for A.P. Moller – Maersk (Maersk) and its fleet of methanol-powered container vessels.
To enhance the BLRE site’s environmental credentials, wood fiber from local, sustainably managed forests will be used, and Denbury Carbon Solutions will ensure that the methanol has a negative carbon intensity through sequestration of an estimated 1 million tons of carbon dioxide per year produced by the project.
SunGas Renewables estimates that BLRE will invest nearly US$2bn to construct the facility at the former International Paper facility in Rapides Parish. Construction is scheduled to begin in late 2024 ahead of commercial operations starting in 2027.
“A.P. Moller – Maersk is excited to be partnering with SunGas Renewables, which is pioneering a truly large-scale pathway to green methanol with its Beaver Lake Renewable Energy facility,” said Emma Mazhari, head of energy markets, Maersk.
“We would like to thank SunGas Renewables for showing great leadership and for its commitment to the green transition of energy. This is helping Maersk to deliver valuable services to our customers and is aligned with our aim to reach net zero greenhouse emissions by 2040. Together, as pioneers in the field, SunGas and Maersk are driving a much-needed transition in a heavy pollution industry. We hope that work can be accelerated further in the years to come.”
“Using biomass from sustainably managed forestry along with carbon capture allows our project to generate green marine shipping fuel while simultaneously removing carbon from the atmosphere. This new low-carbon marine fuel facility also helps strengthen communities and create sustainable economies right here in Rapides Parish, Louisiana,” said Robert Rigdon, CEO of SunGas Renewables.
“As we continue our mission to make a meaningful impact in the energy transition, we look forward to collaborating with all our project partners and the State of Louisiana to construct and operate this important project. This incredible effort happening right here in Pineville will be an innovative and industry leading low-carbon energy solution that will help fuel a better world.”
SunGas Renewables formed a strategic green methanol partnership with Maersk in late 2022, to produce green methanol from multiple facilities in the USA. The BLRE project is SunGas Renewable’s first facility to produce green methanol for Maersk.
