WASHINGTON – The Energy Department is offering a conditional, $2 billion loan guarantee to store carbon dioxide at a methanol plant under construction in Louisiana. The plant will use petroleum coke, a byproduct of oil refining, to make methanol, a chemical used in products such as paint, glue, plastics and formaldehyde.
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The loan guarantee is the first to be offered under an advanced energy program designed to help promising technologies that are unable to secure private investors.
Houston-based G2X Energy broke ground this year on a large-scale methanol plant in Lake Charles, Louisiana, 140 miles east of Houston.
Energy Secretary Ernest Moniz called the loan commitment a milestone in federal efforts to capture and store carbon pollution, a key driver of global warming.