Linda Miller, representing Lake Charles Methanol, gave the Lake Charles Harbor and Terminal District an update on Oct. 30 about the company27s move to a new project company, financing progress and outstanding obligations to the port.

Miller said the new project company was formed at investors27 request and that the existing lease and its liabilities have been assigned to the new entity. "I can declare unequivocally that all of the liabilities move forward," Miller said, responding to board members who said prior presentations had given the impression that past-due obligations had been eliminated.

Miller described the project as a hydrogen-to-methanol facility with strong environmental characteristics, low carbon dioxide emissions and a largely captured CO2 stream for sequestration. She named Technip and Turner Industries as principal engineering and construction contractors and Phoenix Power Systems for the tank farm and pipeline work. Miller said carbon dioxide will be delivered to Denbury for sequestration and noted Denbury was expected to be merging with ExxonMobil.

On financing, Miller said the project closed $47 million in development capital earlier in the year and has applied to the Department of Energy; the project completed a Part 1 approval and is preparing a Part 2 application requiring an independent engineer27s report and Standard & Poor27s review. Miller said the DOE Part 2 package should be complete by year end and that the project has requested more than $3 billion in DOE support in current applications. She added the team is pursuing commercial bank financing in parallel so it can close on a commercial path if DOE timelines slip.

Miller said the project filed for an air permit last week as a "minor source" and that agency review could conclude in December or January with public hearings possibly in February. She said the team is working to complete front-end engineering and design and to reach a final price by the second quarter of next year, and that the port had granted the project an extension through next year with a financial-close aspiration of June 30.

On port obligations, staff and Miller referenced a $2,300,000 amount due at financial close and noted the company has paid $2,300,000 in option payments over recent years. Board members raised a separate $2.1 million carryover from the predecessor company (Lucadia) that appears included in the first-year rent; Miller said she would verify the additional amount but affirmed that if the obligation exists the project will pay it. Miller also explained that interest on outstanding amounts is calculated monthly.

Board members said they want clearer, earlier notice when corporate assignments occur after a lease-extension approval and requested that Miller return with quarterly updates; Miller said she planned to come back in January and April for further updates.

The board did not take an action to change the lease during the meeting; the presentation served as an informational update and a clarification of financial and permitting timelines.