Towards a climate test for industry: Assessing a gas-based methanol plant

The document evaluates the proposed Northwest Innovation Works methanol facility at the Port of Kalama, arguing that its greenhouse gas emissions are significantly underestimated and that it is unlikely to reduce global emissions. It proposes a 'climate test' for new industry to ensure projects do not lock in high-carbon technologies or become stranded assets in a transition to a low-carbon economy.

• The greenhouse gas (GHG) emissions associated with the proposed Kalama methanol refinery are estimated to be significantly higher than those reported in the facility's Final Environmental Impact Statement (FEIS). While the FEIS estimated 1.3 million tons CO2e, the authors estimate 2.6 million to 4 million tons CO2e annually (using a 100-year GWP), or 3.7 million to 7 million tons CO2e (using a 20-year GWP).
• The FEIS for the Kalama facility contained two primary flaws: it used average rather than marginal emission rates for off-site power generation, and it erroneously claimed zero GHG emissions for the production and transportation of natural gas.
• Although proponents claim the facility would reduce emissions by displacing coal-based methanol in China, the authors argue it is more likely to displace lower-emission olefin production routes based on ethane or naphtha, which would increase global GHG emissions.
• The viability of displacing coal-based methanol is questioned due to declining economics for new coal-to-methanol plants in China and Chinese policy efforts to curb coal consumption.
• If the methanol produced is used for transportation fuels rather than olefins, it is likely to increase global GHG emissions and potentially slow the transition to electric vehicles.
• The authors propose a 'climate test' for new industrial development, asserting that a facility should only be approved if it has significantly lower emissions than the practices it displaces and is consistent with a transition to a deeply low-carbon future (keeping warming well below 2 degrees Celsius).
• There is a risk that the Kalama facility could become a 'stranded asset' if a high global price on carbon or a shift toward bioplastics renders fossil-fuel-derived methanol financially unviable.

APA

Erickson, P., & Lazarus, M. (2018). Towards a climate test for industry: Assessing a gas-based methanol plant. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2018/02/sei-2018-db-towards-a-climate-test.pdf

Chicago

Erickson, Peter, and Michael Lazarus. Towards a climate test for industry: Assessing a gas-based methanol plant. Stockholm Environment Institute, 2018. https://www.sei.org/wp-content/uploads/2018/02/sei-2018-db-towards-a-climate-test.pdf.

Wikipedia

{{cite report |last1=Erickson |first1=Peter |last2=Lazarus |first2=Michael |title=Towards a climate test for industry: Assessing a gas-based methanol plant |publisher=Stockholm Environment Institute |date=2018 |url=https://www.sei.org/wp-content/uploads/2018/02/sei-2018-db-towards-a-climate-test.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{erickson2018towards, author = {Erickson, Peter and Lazarus, Michael}, title = {{Towards a climate test for industry: Assessing a gas-based methanol plant}}, institution = {Stockholm Environment Institute}, year = {2018}, url = {https://www.sei.org/wp-content/uploads/2018/02/sei-2018-db-towards-a-climate-test.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }