Sungas shelves US bio-methanol project citing slow bunkering uptake

Sungas Renewables has halted development of its planned US bio-methanol plant, citing slower-than-expected adoption of the fuel in the shipping sector, among other factors.

IMAGE: An illustration of the shelved bio-methanol project. Sungas Renewables

The Beaver Lake Biofuels Project in Central Louisiana was expected to produce 553,000 mt/year of bio-methanol from wood fibre by integrating three of the company’s syngas production systems with downstream technologies.

The project was also expected to achieve geological storage of approximately 1.1 million mt/year of biogenic CO2 produced during green methanol production.

Apart from slower-than-expected bunkering uptake, the company cited uncertainty surrounding carbon capture and storage pathways, as well as a lack of clarity on the regulatory support and financing conditions required for the project.

Sungas said it will engage with third party customers interested in deploying its syngas production systems in other projects.

By Nachiket Tekawade

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