Entergy Gulf States Louisiana L.L.C. will supply up to 30 megawatts of power to Methanex’s new methanol plant in Geismar under an agreement announced Wednesday, Oct. 23.
Vancouver-based Methanex is moving two plants, both capable of producing 1.1 million tons of methanol per year, to Geismar from Chile. Methanex will spend around $1.1 billion to do so.
At peak demand, the plant would consume enough electricity to power around 30,000 homes.
The power contract for the first plant covers an initial 10-year term and is renewable on a year-to-year basis. Entergy Gulf States plans to upgrade its electric transmission system to meet the increased demand that the Methanex facility will need. The contract’s value and the amount Entergy Gulf States will spend on the upgrade were not immediately available.
Methanex is moving the plants to take advantage of the plentiful supply of low-cost natural gas.
Methanol can be found in everything from windshield washer fluid to recyclable plastic bottles, plywood floors, paint, silicone sealants and synthetic fibers. Methanol, a clean-burning alternative fuel, also is increasingly used in the energy sector, including direct gasoline blending, dimethyl ether and biodiesel.
Methanex’s first plant is expected to be up and running by the end of 2014, with the second plant online in early 2016.