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SunGas Renewables begins FEED for US$2 billion biomethanol facility

SunGas Renewables begins FEED for US$2 billion biomethanol facility
SunGas Renewables and C2X Beaver Lake Renewable Energy (BLRE) green methanol project enters into technology licenses and front-end engineering design (FEED) contracts (photo courtesy SunGas).

In the United States (US), SunGas Renewables Inc. (SunGas) has announced the start of front-end engineering design (FEED), marking the beginning of the final stage of development for its flagship Beaver Lake Renewable Energy (BLRE) green methanol project.

Developed in partnership with C2X, this landmark green methanol project is located in Central Louisiana within Rapides Parish.

This milestone marks the execution of the FEED engineering contracts and selection of key technology licensors.

The FEED engineering will be performed by Kiewit Engineering Group Inc. (Kiewit) and Jacobs based on process technology packages, completed by SunGas for biogenic syngas and carbon dioxide (CO2) production using three “S1000” biomass gasification modules, Johnson Matthey for the methanol synthesis technology and catalysts, Linde Engineering for Acid Gas Removal by its Rectisol Wash Unit, and Merichem Technologies for its “LO-CAT” sulfur recovery technology.

We are excited to announce this important step into the final development stage of the Beaver Lake project.  High-quality partners with a proven track record of excellence are critical to success. Having Kiewit and Jacobs prepare our FEED deliverables, combined with the stellar group of selected technology licensors, forms a strong and competent team. We are now focused on moving quickly forward with all remaining commercial, design, permitting, and financing tasks required for a final investment milestone and start of construction targeted to occur in mid-2026, said Robert Rigdon, President and CEO at SunGas Renewables.

Kiewit, one of North America’s largest and most respected engineering and construction organizations, and Jacobs, a leading US science-based consulting and advisory company with global operations, have teamed up to deliver the engineering design for the Beaver Lake facility, integrating all key licensors’ engineering packages.

We are proud to continue supporting the Beaver Lake project in partnership with SunGas — a relationship that began at the project’s earliest stages. We’re excited to move into the FEED phase alongside SunGas and C2X and look forward to helping advance this important project toward construction, said Tyler Nordquist, SVP of Kiewit Engineering Group.

The BLRE project is an important and impactful project with an estimated investment of over US$2 billion, and is expected to create over 1,150 construction jobs, 400-500 indirect jobs, and more than 100 permanent local operating positions.

Supporting the FEED for innovative biofuels projects like Beaver Lake, which represent a significant opportunity for domestic biofuels growth, closely aligns with Jacobs’ commitment to delivering clean, advanced biofuels solutions. With over 70 years of experience in the advanced manufacturing space, we’ve provided transformative, cost-effective solutions across a diverse set of manufacturing markets, leveraging advanced automation and integration technologies to optimize processes, strengthen supply chains, maximize value, and drive sustainable economic benefits for the communities we serve, said Koti Vadlamudi, General Manager and EVP at Jacobs.

The Beaver Lake facility is expected to produce over 500,000 tonnes per annum of green methanol for customers in the shipping, aviation, chemicals, and industrial sectors.

Following completion of the FEED phase, construction is expected to start in the second half of 2026.

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