$3bn to be Invested in Blue Hydrogen Project in Louisiana

Lake Charles Methanol (LCM) has announced it will invest $3.24 billion to build an industrial facility featuring blue hydrogen production and carbon capture and storage (CCS) for low-carbon methanol production.

The company will use advanced auto thermal gas forming technology and employ CCS to produce low-carbon hydrogen for conversion to methanol.

It is said that the facility will produce around 3.6 million tonnes annually of methanol, with the company then working with a third party to capture and sequester about one million tonnes of carbon each year to reduce the carbon intensity of the hydrogen, for synthesis into low-carbon intensity methanol.

As a FEED study is currently undergoing, the final investment decision and beginning of the construction are expected later this year, with commercial operations anticipated for late 2027.

Don Maley, LCM President, explained that the project will deliver “substantial tangible economic benefits to local communities,” whilst also providing an “environmentally beneficial blue methanol product to facilitate the transition to low-carbon chemicals and fuels.”

Don also said: “We believe that Lake Charles is a fantastic location for this project and we look forward to working with all stakeholders to bring it to fruition.”