Developer says proposed BT-1 methanol plant is advancing; DOE and equity interest reported

Linda Miller updated the Lake Charles Harbor and Terminal District on Jan. 29 about progress on a proposed methanol plant planned adjacent to BT-1. She said the project will make hydrogen and turn it into methanol, has offtake contracts for all output, and is designed for low emissions with a CO2 sequestration arrangement with Denbury (now owned by Exxon).

Miller said the project team had received a draft air permit in December and submitted comments; that permit awaits signatures to avoid a lame-duck administration issuance. On financing, the project has filed a Part 2 application with the Department of Energy and Miller reported an informal DOE meeting in which staff described the project as a potential flagship for the loan guarantee office and a candidate for accelerated review.

On equity, Miller said the sponsor held multiple December meetings with prospective equity providers; one party dropped out but nine remained actively engaged and several could provide the full equity ask. On procurement and construction, Miller said design for the main plant is complete, equipment quotes are under review, and construction-contract term sheets are under negotiation with potential constructors and specialty contractors identified (Technip/Turner, Phoenix Power Group, Orion).

Miller provided an expected close timeline: initial closing hopes slipped by roughly a month from earlier estimates, but the team targeted a third-quarter 2024 close and she described a plan to pay the port approximately $6.2 million on closing (first-year rent in advance plus payables totaling that amount). She also noted LED (Louisiana Economic Development) had approved an incentive package expected to be announced in early February.

Miller described ongoing work on gas supply agreements (including time-limited commitments for certified natural gas and discussions about renewable natural gas) and said permits beyond the air permit were on track for spring. She said contracting and geotechnical work continues and that the DOE and prospective equity interest made the team optimistic about moving forward.

The board asked a few clarifying questions; Miller said the team expected closure of key agreements and financing within months but left final dates and amounts subject to the DOE process and investment due diligence. The presentation provided several quantifiable items (permit status, expected $6.2 million payment at close, DOE fast-track interest) but Miller noted some items remained conditional on agency decisions and contract finalization.