Financial backing of $70 million made by AIDEA for the establishment of a Methanol and Ultra-Low Sulfur Diesel plant on the North Slope.
A significant development in Alaska's energy sector is underway, as the Alaska Industrial Development and Export Authority (AIDEA) has committed $70 million to a North Slope Methanol/Ultra-Low Sulfur Diesel Plant. This facility, part of Alyeschem's Distributed Chemical Manufacturing platform, will be a game-changer for the region.
The plant, set to be installed on a gravel pad previously developed by AIDEA, will convert North Slope natural gas and waste carbon dioxide into methanol and hydrogen. The hydrogen will be used to refine high-sulfur diesel into ultra-low sulfur diesel. This conversion process is expected to reduce carbon dioxide emissions of North Slope operators by an estimated 93 percent, approximately 45,000 tons per year.
Major permits have been secured, and front-end engineering and design have been completed for the plant. The project cost is shared equally between BP Energy Partners, McKinley Alaska Private Investment, and AIDEA's loan. The plant's modules will be fabricated in Texas and shipped to the North Slope for assembly.
The facility will serve as a launchpad for future clean fuel and chemical production. Alyeschem's investment not only generates strong returns for public funds but also catalyses private capital and innovation in Alaska's energy sector.
The project is anticipated to create about eighty construction jobs and fifteen permanent operational positions. Site work, including driving piles and building a tank farm, must be done at Alyeschem's Prudhoe Bay site.
The plant will be operated by Alyeschem. The project is expected to generate more than $5 million annually in tax and royalty revenue for the State of Alaska and the North Slope Borough. AIDEA expects to receive about $2.4 million annually from loan repayment and royalties.
Dana Pruhs, AIDEA board chair, supports investment in the Alyeschem project. According to Pruhs, the Alaskan project would meet AIDEA's mission by creating Alaskan jobs and providing an economic return to Alaskans for generations. Geoff Johns, AIDEA's chief investment officer, considers the investment as a reflection of AIDEA's commitment to financially sound, high-impact projects that deliver long-term value to the state.
However, the search results do not provide information on the identity of the private investors financing the Alyeschem chemical and ultra-low-sulfur diesel plant project on Alaska's North Slope alongside the Alaska Industrial Development and Export Authority.
One of the most significant benefits of the project is the reduction in truck trips. The facility is expected to eliminate an estimated 4,000 truck trips annually, reducing road wear and emissions across the region.
In conclusion, the North Slope Methanol/Ultra-Low Sulfur Diesel Plant is a significant step forward in Alaska's energy sector. It represents a commitment to cleaner, more sustainable energy solutions, job creation, and economic development for the state.
