Refuting a recent report by Bloomberg, an Energy Department spokeswoman insists a conditional loan for up to $2 billion from the federal government to help fund a methanol plant in Lake Charles isn’t in jeopardy because of President Donald Trump’s proposed budget.
Jessica Szymanski tells The American Press Trump’s budget would grandfather all commitments made before Oct. 1, 2017, including the Lake Charles project.
The Energy Department in March guaranteed Lake Charles Methanol the conditional loan that would be used to construct an advance fossil fuels facility that would use petroleum coke—a dirty byproduct of refining oil—to make methanol. The project also would store carbon dioxide underground in Texas to stimulate oil production and minimize emissions.
Ground is expected to be broken on the project some time this year, and construction is expected to take at least three to four years. It’s expected to produce 1,000 construction jobs, 200 full-time employees and 300 oil industry jobs.
Bloomberg recently reported that Trump’s proposed budget slashes the federal loan program backing the project—drawing concerns from those who support the project and Trump.
Hunter Johnston, a spokesman for Lake Charles Methanol, notes the decision to grandfather the project will ultimately be made by Congress though project leaders remain confident that the facility will receive the loan as promised.
