South Louisiana Methanol selected St. James Parish
Zero Emission Energy Plant Ltd (ZEEP) from Austin in Texas, USA, and Todd Corporation (Todd) from Wellington in New Zealand will invest $1.3 billion capital expenditure in a new methanol plant in Louisiana, USA.
ZEEP is a private company developing state-of-the-art technologies to convert coal, petroleum coke, biomass into premium hydrocarbon products.
Using advanced gasification processes, ZEEP manufactures syngas, hydrogen, CO, CO2, methanol, gasoline and power.
In parallel, the family-owned company Todd is one of the largest company in New Zealand with diversified interests in various industrial sectors such as energy, communication and automotive.
In order to benefit from Louisiana existing infrastructures, ZEEP and Todd selected St. James Parish on the banks of the Mississippi River in the South Louisiana District to build this world-scale methanol plant.
In addition, St James Parish has the capability to provide the local industry with competent and competitive labor force.
ZEEP and Todd to introduce advanced GTL technology
Considering the evolution of the natural gas production in recent years in USA with the development of the shale gas, methanol appears on the top priority list of the hydrocarbon products to be localized in USA instead of being imported.
These raw materials have actually much higher prices in China and in general in Asia than in USA, giving a competitive advantage to the Louisiana production.
On the market side, the methanol price appears to be highly correlated to the crude oil standing far above $80 per barrel.
The SLM project will be the largest methanol plant in North America to consume carbon dioxide (CO2) to optimize the methanol production through a Gas-To-Liquids (GTL) or Gas-To-Methanol (GTM) process.
With engineering, procurement and construction (EPC) to begin on last quarter 2013, ZEEP and Todd expect the South Louisiana Methanol project to be completed in 2015 for commercial operations in 2016.