Southern Energy Renewables inks green methanol supply deal with shipping giant, supporting construction of $1.4-B clean fuels refinery
Southern Energy Renewables has signed a letter of intent to supply green methanol to shipping giant Hapag-Lloyd, supporting plans for a proposed $1.4 -billion clean fuels refinery in Killona, St. Charles Parish, Louisiana (U.S). The facility would convert wood waste and forest residues from the region into low-carbon fuels, producing around 220,000 tons of maritime methanol and 28 million gallons of sustainable aviation fuel annually. The project is also expected to create a new market for Louisiana’s forestry industry, which has faced setbacks following several paper mill closures in recent years.
The agreement with Hapag-Lloyd is considered an important milestone as Louisiana officials review the project’s request for $402.5 million in tax-exempt financing. The plant, to be built at St. Charles Intermodal along the Mississippi River, would benefit from established river logistics infrastructure and nearby hydrogen supplies. Southern Energy Renewables, recently acquired by XCF Global Capital, expects the facility to create 120 direct jobs with average salaries above $97,000, while state estimates project nearly 400 additional indirect jobs.
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