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Lake Charles Methanol II Plans Lake Charles, Louisiana, Manufacturing Operations

Lake Charles Methanol II plans to establish manufacturing operations at the Port of Lake Charles, Louisiana. The $3.24 billion project is expected to create 123 jobs in Calcasieu Parish.

The new facility would reform natural gas and renewable gas feedstocks into hydrogen, while capturing carbon dioxide, which would then be used to produce about 3.6 million tons per year of methanol. Construction is scheduled for mid-2024.

“The project will deliver substantial tangible economic benefits to local communities while providing an environmentally beneficial blue methanol product to facilitate the transition to low-carbon chemicals and fuels,” LCM President Don Maley said. “With the strong support of state and local officials and the local community, 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.”

Louisiana Economic Development (LED) offered an incentives package that includes a Performance-Based Grant of $5 million to be used for reimbursement of company expenditures for infrastructure needs. The company is also expected to participate in Louisiana’s Industrial Tax Exemption and Quality Jobs programs and the comprehensive workforce development solutions of LED FastStart.

“I have said from day one that Louisiana must not only attract new businesses but help existing businesses like Lake Charles Methanol grow and thrive,” Governor Jeff Landry noted. “This expansion would bring billions of dollars, hundreds of permanent high-paying new jobs and thousands of construction jobs, providing a tremendous boost to the economy of the Southwest Region. The state looks forward to continuing to support LCM’s efforts to bring the project to completion.”

The project is currently undergoing a FEED study and regulatory permitting. A final investment decision and start of construction are expected in mid-2024. Construction and commissioning of the facility are expected to take about three-and-a-half years, which would allow commercial operations to begin in late 2027.

"The Lake Charles Methanol II plant is a welcome addition to our regional industrial base and the numerous jobs it will create will be another boon for southwest Louisiana's skilled workforce,” added George Swift, president and CEO of the Southwest Louisiana Economic Development Alliance. “It is projects like this that also highlight the hard work and perseverance of the leadership of the Port of Lake Charles. We are honored to work with the port and similar regional players to bring projects like this to our region."

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