You are using an outdated browser For a better experience using this site, please upgrade to a modern web browser. Subscribe Get Daily Email Subscribe --> Contact Us Sign in Home News & Features Compliance Costs Bunker Prices Bunker Intelligence Americas News Latest Features World Americas EMEA Asia/Pacific Home News & Features Americas SunGas Scraps US Methanol Project Amid Slow Marine Fuel Adoption SunGas Scraps US Methanol Project Amid Slow Marine Fuel Adoption by Ship & Bunker News Team Wednesday June 17, 2026 Tweet Follow @shipandbunker The facility was supposed to produce 553,000 mt/year of bio-methanol. Image Credit: SunGas Energy firm SunGas Renewables has halted further development of its Beaver Lake Biofuels project in Louisiana , citing slower adoption of low-carbon methanol as a marine fuel and uncertainty over carbon capture. The proposed facility near Alexandria , Louisiana , was designed to convert wood fibre into about 553,000 mt/year of low-carbon methanol, it said in a statement on its website on Friday . The project also planned to store around 1.1 million mt/year of biogenic CO2 underground. “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,” it said. In 2023 , SunGas announced that the Louisiana facility would supply low-carbon methanol to A.P. Moller-Maersk 's dual-fuel methanol-powered fleet. The company had targeted a final investment decision in 2026 for the project, with start-up expected around  2029 . “We continue to believe low-carbon methanol can help decarbonize the maritime, aviation and chemicals industries,  Robert Rigdon , CEO of SunGas,