Nauticol Energy Ltd. (Nauticol) has announced its intention to construct a USD 2B world-scale methanol manufacturing facility in Grande Prairie.
The project will produce up to 3 MMT of methanol per year, converting Alberta’s natural gas into a value-added product. Methanol is a multi-purpose product with several end uses, including fuels, electronics, construction materials, solvents and petrochemicals. Methanol use in clean alternative fuels is leading to significant growth in global demand.
Starting in 2019, the facility will be built in three stages, using a modularised design. PCL Construction will construct the facility modules in Alberta and transport them to the Grande Prairie site, which is located approximately 10 kilometres south of the City in the County of Grande Prairie.
While some of the methanol produced will supply local markets, most will be directed to Asian markets, which make up approximately 70% of current global demand.
Nauticol has signed a MoU with the Western Cree Tribal Council (WCTC) whereby the WCTC will be equity participants in the project. This agreement sets a new precedent in Alberta. The WCTC serves the communities of Duncan’s First Nation, Horse Lake First Nation and Sturgeon Lake Cree Nation.
In the coming months, Nauticol will be working with all levels of government to obtain the required regulatory permits to successfully complete the project.