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Nacero Plans $3 Billion Natural Gas to Gasoline Plant in Casa Grande, Arizona

03/19/2020
Nacero Inc. plans to build a more than $3 billion natural gas to gasoline manufacturing facility in Casa Grande, Arizona.

According to the Arizona Commerce Authority, Nacero Casa Grande will produce 35,000 barrels per day of cost-competitive, lower carbon footprint, zero sulfur gasoline that is usable in today’s cars and trucks. Construction is expected to begin in 2021 and be completed in phases through 2025.

Nacero Casa Grande will be located in the heart of Casa Grande’s growing industrial/technology corridor on existing rail, highway, and interstate natural gas pipelines. The process of making gasoline from natural gas produces two and a half gallons of water for every gallon of gasoline, so the system will self-generate 80% of the water it needs. The remaining 20% (1,000 acre feet per year) will come from the Casa Grande wastewater treatment plant. An estimated 4,000-acre feet currently used to grow alfalfa on the Nacero site will be left in the ground. 100% of the facility’s peak electricity will come from an on-site solar photovoltaic power plant.

“By making an environmentally superior gasoline from natural gas, Nacero will enable drivers to keep their cars and help the planet,” said Jay McKenna, Nacero’s CEO. “Using existing vehicles, markets, infrastructure, and technology enables Nacero to quickly and predictably create large-scale benefits.”

Nacero gasoline will have a smaller carbon footprint than traditional gasoline because the process of making gasoline from natural gas does not produce the byproducts of crude oil refining, state officials explained. Nacero estimates that its Casa Grande facility will avoid the introduction of approximately 5.2 million tons per year of carbon dioxide into the atmosphere, the amount emitted annually by roughly 1 million cars. By producing gasoline with zero sulfur content Nacero will cause catalytic converters to be more effective in removing NOx, CO, and VOCs, the precursors of ground level ozone. Ground level ozone is harmful to humans and is limiting economic development in Arizona.

“Nacero's zero-sulfur gasoline will be a win for the environment and the economy,” said Misael Cabrera, Director of the Arizona Department of Environmental Quality.

Nacero Casa Grande is one of the largest projects ever undertaken in Arizona, the ACA said. It will generate an estimated 2,000 jobs during construction, 265 high-paying, permanent jobs in rural Arizona after completion and give Arizona a measure of gasoline independence and supply diversity for the first time. Arizona State University estimates that Nacero Casa Grande will add an estimated $6.9 billion to the economy of the State over 40 years, not counting income taxes.

“We are very proud that Nacero has selected Casa Grande, Arizona as the home for this first-in-the-nation, high-tech manufacturing facility,” said Sandra Watson, Arizona Commerce Authority President & CEO. “This is a truly incredible project that further advances Arizona’s reputation as a global hub for innovation. We’re grateful to Nacero for this significant investment which will have a highly positive impact on our statewide economy.”

“We welcome Nacero, 'The New Gasoline,' to Arizona," said Glenn Hamer, CEO of the Arizona Chamber of Commerce and Industry. "Nacero will diversity our manufacturing base, put quality jobs in rural Arizona, and give Arizona a measure of gasoline independence for the first time.”

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