Entergy inks 10-year deal with Chinese firm to power $1.8B Louisiana methanol complex
Entergy Louisiana has struck a deal with Yuhuang Chemical Inc. to supply power to the China-based company’s $1.85 billion methanol complex in St. James Parish for 10 years. Financial terms of the deal were not disclosed.
The facility is the first major project of YCI, the North America subsidiary of Shandong Yuhuang Chemical Company. YCI is building the complex on the former site of the old St. James High School and on an additional 1,250 acres the company purchased along River Road, between the Mississippi River and La. 3127, in 2015.
Construction began last April on the first of three phases. YCI is investing $1.5 billion in the complex’s first methanol plant. Work is set to be completed by the first quarter of 2020.
The plant will create 100 permanent jobs while construction of the facilities will result in 1,000 construction jobs.
Yuhuang Chemical first announced the St. James project in 2014. The project is the company’s first major direct investment in Louisiana.
To secure the project, Louisiana Economic Development is providing an incentive package that includes two performance-based grants, one of which is a five-year incentive totaling $9.5 million to offset construction costs, and another that provides $1.75 million over 10 years to partially defray site development costs
The company also will participate in LED’s FastStart workforce training program and use the state’s Quality Jobs and Industrial Tax Exemption programs.