SunGas Renewables has abandoned plans to develop its Beaver Lake Biofuels project in Louisiana, pointing to sluggish uptake of low-carbon methanol as a marine fuel and ongoing uncertainty around carbon capture and storage as key reasons for the decision.
The proposed facility, located near Alexandria, Louisiana, was designed to convert wood fibre into approximately 553000 metric tonnes of low-carbon methanol per year. In addition to fuel production, the project had planned to store around 1.1 million mt per year of biogenic CO2 underground as part of its carbon capture component.
SunGas had targeted a final investment decision in 2026, with commercial start-up expected around 2029. The company announced in 2023 that the facility would supply low-carbon methanol to A.P. Moller-Maersk dual-fuel methanol-powered fleet. The project also carried backing from C2X, a green methanol producer supported by A.P. Moller Holding and Maersk.
In a statement posted to its website, SunGas cited a combination of challenges that made it impossible to advance on the required schedule. The company referenced slower-than-expected market adoption of low-carbon marine fuels, uncertainty regarding the carbon capture and storage pathway, and a lack of clarity on available regulatory support and financing conditions.
The cancellation signals real friction in the green methanol supply chain at a time when demand for alternative marine fuels is still developing. The combination of regulatory ambiguity, slow commercial uptake, and financing hurdles reflects broader structural challenges facing large-scale low-carbon fuel infrastructure.
