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Bia Energy Operating Company ("Bia Energy") announced significant project updates for its low carbon methanol production facility at the 4,000-acre Port of Caddo-Bossier industrial multimodal facility in northwest Louisiana ("the Port Complex"). The facility is designed to be able to reduce carbon emissions by over 92% compared to traditional methanol production by capturing CO2 and utilizing hydrogen as both fuel and feedstock. The Front-End Engineering Design (FEED) study and major permits are complete for the 74-acre, $1.2 billion facility designed to produce 550,000 metric tons of blue and bio-methanol per year.
To support the marketing of the facilitys production, Bia Energy has entered into a 20-year Commercialization and Marketing Services Agreement with Macquarie Commodities Trading, an affiliate of Macquarie Groups Commodities and Global Markets business ("Macquarie"). Through Macquarie, the project is currently seeking fixed-price offtake agreements with organizations in the chemical, maritime, manufacturing and industrial sectors looking to switch to low carbon methanol. Bia Energy is collaborating with CapturePoint LLC to capture and transport the CO2 to a class VI well site in central Louisiana. Bia Energy will utilize the J. Bennett Johnston/Red River Waterway for its barge shipments of finished product.
"We are thrilled to have reached this milestone and update the market on our plans for this low carbon methanol project," said Dr. Ana Rodriguez, CEO and Cofounder of Bia Energy. "The advancement of this shovel-ready project and its positive environmental impact, coupled with the jobs creation and development at the Port and in Caddo and Bossier Parishes, underscores our commitment to the region and our ability to deliver low carbon solutions to our prospective customers across a wide range of industries."
The methanol production and processing facility will include state-of-the-art docks, tank farms and piping at the Port Complex. It is anticipated that nearly 350 construction jobs will be created at peak construction for the project. Bia Energy expects the facility to create 75 direct new jobs once operational. Louisiana Economic Development (LED), which provided an incentives package for the project, estimates the project would result in 390 indirect jobs, for a total of 465 new jobs in Louisianas Northwest region.
"Bia Energys investment has the potential to create a large number of well-paying permanent jobs and stimulate economic activity all across North Louisiana, and that would be a win for the entire state," said Susan Bonnett-Bourgeois, Secretary of Louisiana Economic Development. "From the very beginning this project has been a testament to the power of collaborative economic development, and I want to thank and congratulate Dr. Rodriguez and our partners at the Port of Caddo-Bossier, BRF and NLEP for moving it closer to the finish line."
"For over 40 years, Macquaries CGM business has worked with clients to understand their needs and provide tailored marketing and commercialization solutions," said Aarnoud van Weelderen, Senior Managing Director in Macquaries CGM business. "Macquarie is pleased to work with Bia Energy to provide physical offtake, marketing and logistics of low carbon methanol to end consumers and customers in the US and globally who are focusing on their decarbonization initiatives."
"Macquaries physical commodity business continues to grow to meet the current and future energy needs of our clients," added Justin Brymer, Head of US Physical Structuring and Origination at Macquarie. "We are excited to work with Bia Energy to extend our terminal and vessel capabilities."
Tracy Evans, CEO of CapturePoint LLC, commented, "The team at CapturePoint is excited to provide leading-edge carbon management solutions for Bia Energys planned low-carbon methanol facility in the Port of Caddo-Bossier. When this project is fully operational, we expect to transport up to 250,000 metric tons of CO2 annually for safe and permanent storage in CapturePoints deep underground CENLA Hub carbon storage sites. Capturing that volume of carbon dioxide is a significant demonstration of Bia Energys environmental commitments."
Bia Energy has engaged Houston-based S&B Engineers and Constructors as its Engineering, Procurement and Construction (EPC) contractor.
The Company is expected to reach financial close in 2024, after which construction will begin. Commercial Operations Date is expected in late 2026. |
