W|EPC: Renewable Methanol & Hydrogen - Analyzing Methanex's (MEOH) Geismar Facilities - Webber Research

W|EPC: Renewable Methanol & Hydrogen – Analyzing Methanex’s (MEOH) Geismar Facilities

September 2020

Total Pages: 7

Table Of Contents

  • Methanex & Renewable Methanol– Key Takeaways      (page 2)
  • Renewable Methanol (page 3)
  • Methanol Feedstock & Applications (page 4)
  • Hydrogen is Getting Cheaper (page 5)
  • Renewable Methanol Facilities (page 6)
  • Geismar Methanol Facilities (page 7)
  • Methanex Overview (page 8)
  • History – Geismar Units 1 & 2 (page 9)
  • Geismar Unit 3 Comps (page 10)
  • GU3 Cost Overview (page 11)
  • Schedule – Key Milestones & Impact (page 12)
  • Monthly Progress Curves (page 13)
  • EPC Dynamics (page 14)
  • Disclosures (page 16)                                                                                                  

Key Takeaways:

1) Lower-Cost Hydrogen Will Produce Cost Competitive Renewable Methanol: Pipe Dream or Reality? Global methanol demand sits near ~75 MTPA; with demand expected to ramp amid new EU and U.S. environmental mandates. Renewable Methanol (RM) is produced using Hydrogen (H2) from solar/wind and carbon dioxide (CO2) as compared to traditional methanol produced from fossil fuels (i.e. coal & natural gas). (Page 4)

2) Cost-competitive RM would open the door to green plastics and support various marine, fuel, & vehicle clean energy mandates but, costs are not competitive based on current technology. (Pages 4 – 5)

3) Limited project economics hasn’t stopped ~10 commercial scale renewable methanol facilities in various stages of development around the world. As these projects develop, lower costs and improved technology would be a game changer for the methanol industry while providing H2 more downstream applications. (Page 6)

4) Tracking the 800 lbs. Methanol Gorilla…Methanex (MEOH). (Pages 8 – 9)

5) Geismar Unit 3: Positioning vs. Competition. (Pages 10 – 13)

6)The EPC Dynamics…So Long KBR, Next Up? (Page 15)


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