A Texas company that announced plans for a green methanol plant at the former International Paper plant in Pineville has ceased development of the $2.4 billion project.
SunGas Renewables cited poor market conditions and other factors in its move to halt the Beaver Lake Biofuels project that was slated to create over 1,000 construction jobs and employ 100 with average annual salaries of more than $78,000. Construction was expected to be completed in late 2028.
The wood fire-to-low carbon methanol facility was to integrate three production systems with downstream technologies to produce 553,000 metrics tons of green methanol per year.
Methanol is a clear chemical that is used in plastics, paints, cosmetics and fuels. The fuel produced there would have used wood fiber from local timber as a feedstock.
The project was also to include storage of about 1.1 million metric tons per year of biogenic carbon dioxide.
The decision was based on slower-than-expected market adoption of low-carbon marine fuels, uncertainty regarding the carbon capture and storage pathway for the project and clarity on the available regulatory support and financing conditions needed for the project, officials said.
State and local officials celebrated the company’s initial announcement in 2023, with then-Pineville Mayor Rich Dupree referring to it as a “potential game-changing development” for the city. The International Paper site had sat vacant since 2009.
“We continue to believe low carbon methanol can help decarbonize the maritime, aviation and chemicals industries,” SunGas CEO Robert Rigdon said. “However, given the current regulatory uncertainty, slower customer uptake and broader financing and infrastructure constraints, we do not believe the conditions are in place to move the project forward successfully. We are grateful to the many public and private partners who supported the project.”
The project received incentives from the state to lure SunGas to the site, including a $6 million performance-based grant, and was expected to participate in the state’s industrial tax exemption program.
SunGas continues to engage third-party customers who are interested in deploying its S1000 system on other projects and will continue to offer them products and engineering services, officials said.
