SunGas Renewables halts development of US biomethanol project

SunGas Renewables Inc. (SunGas) recently announced that it will cease further development of the Beaver Lake Biofuels project, a proposed wood fiber-to-low carbon methanol facility in Central Louisiana near Alexandria.

Beaver Lake’s design contemplated the integration of three SunGas S1000 syngas production systems together with downstream technologies to produce approximately 553,000 metric tonnes (mt) per year of low carbon methanol and geological storage of approximately 1.1 million mt per year of biogenic CO2. 

This combination of scale and low product carbon intensity supported a globally competitive bio-methanol offering, illustrating the potential viability of this technology pathway as decarbonization requirements become more stringent.

“This decision reflects a combination of factors that affected Beaver Lake’s ability to advance on the timetable required, including slower-than-expected market adoption of low-carbon marine fuels (specifically low carbon methanol), uncertainty regarding the carbon capture and storage pathway for the project and clarity on the available regulatory support and financing conditions needed to support a project of this scale,” the company said. 

Robert Rigdon, Chief Executive Officer of SunGas, said: “We continue to believe low carbon methanol can help decarbonize the maritime, aviation and chemicals industries. However, given the current regulatory uncertainty, slower customer uptake and broader financing and infrastructure constraints, we do not believe the conditions are in place to move the project forward successfully. 

“We are grateful to the many public and private partners who supported the project, and today’s announcement does not change our confidence in the long-term potential of SunGas’ technology to produce low-cost, low carbon molecules, including methanol, SAF, other transportation fuels and methane.”

Manifold Times previously reported SunGas Renewables announcing that the Central Louisiana facility would produce green methanol for Maersk.

At the time, the facility was expected to generate nearly 400,000 metric tonnes (mt) of green methanol per year for marine fuel.

Related: SunGas Renewable to build its first facility to produce green methanol bunker fuel for Maersk
Related: Maersk and SunGas Renewables sign letter of intent for strategic green methanol production

Photo credit: SunGas Renewables
Published: 18 June, 2026