The plant is expected to reform natural gas into hydrogen-rich syngas, capture much of the CO2, and use the hydrogen in that syngas to produce blue methanol for markets like shipping.

Sandpiper said the facility will produce 3,000 tonnes of methanol per day.

However, the project is still at the pre-final investment decision (FID) stage, with production targeted for 2030.

Topsoe has been developing its SynCOR technology, as it believes methanol is a proven way for industries to decarbonise, according to Henrik Rasmussen, Managing Director of Topsoe Americas.

Topsoe said its autothermal reforming system is distinguished by maturity and comparatively low capital and operating costs.

“In combination with carbon capture and storage, [it’s] a cost-effective route to produce blue methanol at an industrial scale,” Rasmussen added.

Global methanol demand is projected to rise to as much as 150 million tonnes by 2030, according to the International Energy Agency (IEA), with shipping emerging as a key growth driver.

Although conventional methanol is produced today almost entirely made from natural gas or coal.

Blue methanol can lower emissions at the production stage by capturing process CO2, but full lifecycle emissions remain unless you move to green methanol.