SunGas to invest $2 billion to produce green marine shipping fuel

SunGas Renewables, a Texas-based spin-out of GTI Energy, is establishing a new subsidiary called Beaver Lake Renewable Energy (BLRE) to build a green methanol production facility in Central Louisiana.

The facility’s annual production is expected to reach approximately 400,000 metric tons of green methanol, primarily aimed at fuelling A.P. Moller, Maersk’s fleet of methanol-powered container vessels.

Utilising wood fibre from locally sourced, sustainably-managed forests, the factory aims to achieve negative carbon intensity through sequestration of nearly a million tons of carbon dioxide annually. The carbon capture and storage for the project will be overseen by Denbury Carbon Solutions.

The construction phase is scheduled to commence in late 2024, and commercial operations are anticipated to begin by 2027.

The choice of Central Louisiana for the BLRE project is based on several factors, including the region’s long-standing track record of managing forests sustainably, existing infrastructure to support the facility, and strong local and state support.

“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. We would like to thank SunGas Renewables for showing great leadership and for its commitment to the green transition of energy,” Emma Mazhari, Head of Energy Markets at Maersk, said.

“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.”

The BLRE project is SunGas Renewable’s first facility to produce green methanol for Maersk.

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