SunGas Renewables Inc. has decided to halt development of its proposed bioenergy and low-carbon methanol project in Louisiana, citing market, regulatory and financing conditions that have slowed progress on the large-scale investment.
The project, known as Beaver Lake Biofuels, was being developed through Beaver Lake Renewable Energy, a company formed by SunGas in 2023 to build a wood-to-methanol biorefinery in Rapides Parish in central Louisiana, Biomass Magazine reported.
Planned with an estimated investment of $2 billion, the facility was proposed for the site of the former International Paper facility and had been expected to begin operations as early as 2028.
The project was designed to combine three SunGas S1000 syngas production systems with downstream processing technologies to produce approximately 553,000 metric tonnes of low-carbon methanol annually. It also aimed to capture and store around 1.1 million metric tonnes of biogenic carbon dioxide each year.
SunGas had moved the project into the front-end engineering design (FEED) phase in May 2025 and expected construction to start in the second half of 2026 following a final investment decision.
However, in a statement issued on June 12, the company announced that development of the Beaver Lake Biofuels facility would not move forward under current conditions.
According to SunGas, the decision was influenced by slower-than-expected adoption of low-carbon marine fuels, especially low-carbon methanol, uncertainty surrounding the project’s carbon capture and storage pathway, and limited visibility on regulatory support and financing conditions required for a project of this scale.
Robert Rigdon, Chief Executive Officer of SunGas, said the company continues to believe low-carbon methanol can play an important role in reducing emissions across maritime transport, aviation and chemical industries. However, he noted that current market conditions, customer demand, financing availability and infrastructure readiness do not support successful project execution at this stage.
Despite stopping development of the Louisiana facility, SunGas said it remains committed to commercialising its technology and will continue working with third-party customers interested in deploying its S1000 syngas production systems in other projects.
The company also confirmed it will continue offering engineering services and technology solutions aimed at producing lower-carbon fuels and products, including methanol, sustainable aviation fuel (SAF), transportation fuels and methane.
