Lake Charles Methanol


Capture: Lake Charles Methanol, LLC which was launched in 2015 (and is based out of Houston, Texas)

Transport and Storage: Most likely Denbury Resources

LOCATION: Louisiana, United States

CO2 capture source: Lake Charles Methanol gasification plant in Calcasieu Parish, Louisiana, United States

CO2 storage site: Most likely to Denbury owned oil assets in the Houston area

INDUSTRY (FEEDSTOCK): Chemical production


CO2 CAPTURE CAPACITY VOLUME: Approximately 4.2 million tonnes per annum (Mtpa)

CAPTURE TYPE: Industrial capture (gasification)

CAPTURE METHOD: Absorption physical solvent-based process – Rectisol


COCAPTURE START DATE: 2021 (Institute estimate)

PRIMARY STORAGE OPTION: Enhanced oil recovery

TRANSPORTATION TYPE: Pipeline (onshore to onshore)


Approximately 19 kilometres / 12 miles from the gasification plant to connect to the Denbury-owned Green Pipeline

Approximately 225 kilometres / 140 miles via the Green Pipeline to Denbury owned oil assets in the Houston area

Project description

The proposed Lake Charles Methanol gasification facility would convert petroleum coke (petcoke) sourced from oil refineries in the Gulf Coast region into synthetic gas (syngas). The syngas would then be further processed to produce methanol (the project’s primary product), hydrogen gas, sulphuric acid and CO2.

The CO2, once separated, would be compressed into a supercritical state, ready for transportation The Lake Charles Methanol Project would be designed to capture over 4 million tonnes of CO2 per annum; overall, the project would capture 77% of all CO2 produced by the facility.

The gasification (and CO2 separation and compression facilities) would be located on a 75-acre greenfield site along the Calcasieu Ship Channel (adjacent to the Port of Lake Charles, Louisiana). An ancillary site near the Port’s new dock facilities would house the methanol and sulphuric acid tank farm.

The final Title V and PSD air permits, LPDES water permit, and 404 permit for the facility have been received. Fluor Corporation would design and build the facility under a lump-sum, turn-key, date certain EPC contract. Construction and commissioning is estimated to take three to four years. On the assumption of financial close in the second half of 2017, the projected date for commercial operation is 2021 (Institute estimate).

The projected cost of the Lake Charles Methanol facility (including CO2 separation and compression equipment) is at around US$3.8 billion. In December 2016, the US Department of Energy (DOE) offered a conditional commitment to guarantee loans of up to US$2 billion to Lake Charles Methanol, LLC. The project is actively seeking to raise the remaining equity funds to reach financial close (and has engaged Morgan Stanley as investment advisor).   

Denbury Resources would build and operate a short connector pipeline to transport the captured CO2 from the gasification plant / compression facilities to a location where it would tie into Denbury’s existing Green Pipeline. The CO2 will most likely then be transported approximately 225 kilometres / 140 miles via the (24-inch diameter) Green Pipeline to Denbury owned oil assets in the Houston area. 

Key project milestones

 December 2016: US DOE offers a conditional commitment to guarantee loans of up to US$2 billion to Lake Charles Methanol, LLC. 

Project data is current as at 23/04/2017