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Two methanol plants planned by the Chinese government – one near Clatskanie and one in Kalama, Wash. – could have a dramatic impact on the construction industry and economy of the Lower Columbia River.

Northwest Innovation Works LLC, a joint venture between the Chinese government’s Academy of Sciences and BP, is proposing to invest $1 billion in the first phase of each project. Each one would support approximately 1,000 construction jobs over a three-year period, and 120 permanent jobs after opening – now targeted in 2019.

A second phase would spur an additional $800 million investment and 120 more jobs at each plant, according to Northwest Innovation Works, which has offices in Vancouver, Wash.

Both the Oregon plant, at an 84-acre Port Westward site owned by the Port of St. Helens, and the Washington plant, at the Port of Kalama, would be used to meet a growing demand for methanol made from natural gas, which the U.S. has in abundance, said Greg Peden, a partner in Portland-based Gallatan Public Affairs and a project spokesman.

“The demand for methanol is significant in China,” he said. “The specific customer we would be supplying it to would draw from both facilities. It’s a joint effort – not a competitive process.”

The larger challenge, Peden said, would be navigation of an estimated two-year permitting process, including work to secure air quality permits from the Oregon Department of Environmental Quality.

Because the methanol plants would not generate energy, they would not require approval from the Oregon Department of Energy Facility Siting Council, Peden said. That means fewer hurdles for the project, he said.

“The important difference is that this is not an energy project – this is a chemical manufacturing project – so we don’t have to go through that process,” he said. “Other projects were talking about exporting raw materials. We are a value-added process.”

Company officials presented their plan to Port of St. Helens officials and the community last month and local officials were “cautiously optimistic” about the possibility of large-scale investment that could change the community’s economic outlook over the next five years.

They also would provide a significant boost to an economy that needs it, said Robert Keyser, a Port of St. Helens commissioner and owner of Clatskanie Builders Supply.

“We have a school district that’s struggling to stay open; the county is facing jail closure,” he said. “This is a county in decline. This would not only stop it, but turn it around.”

Keyser expects other Port of St. Helens commissioners to agree and issue Northwest Innovation Works an option to lease the property at a meeting Feb. 12. That would place a hold on the land while the company navigates an expected two-year land use and permitting process.

“I expect approval,” he said. “I haven’t heard much criticism. I think it’s a great fit for the site and for Columbia County.”

The project also would be a boon for contractors and subcontractors, including Harder Mechanical Contractors Inc. The Portland-based company, the largest mechanical contractor in Oregon, is working on projects throughout the U.S., including a $300 million effort to build a 200-megawatt “peaker” plant in Port Westward for Portland General Electric. The facility will give PGE the ability to quickly turn power on and off, said Jim Proulx, Harder’s business development manager.

Harder would seek work on both the Port Westward and Kalama projects, Proulx said.

“That type of work is perfect for what we do,” he said. “We certainly would have more than enough skilled labor.”

The projects would create jobs for electrical and mechanical subcontractors, as well as suppliers of pipe, steel and other materials, Proulx said.

“It’s a ripple effect – it affects a lot of people,” he said. “Each craftsman is a family and that means good-paying jobs for families too.”

Port commissioners are scheduled to decide on the potential lease at their next meeting, on Wednesday at 8:30 a.m. at the Port of St. Helens office. More information is available at .

What is methanol?

Also known as “methyl alcohol” or “wood alcohol,” methanol is a light and colorless liquid that evaporates in air. It is water soluble and biodegradable.

Methanol plants would be served by an existing natural gas pipeline and be used to convert the gas into methanol, which would be shipped in liquid form to China. The methanol would then be converted to olefins, which are the building blocks for commercial products such as plastics and rubbers. Replacing oil and coal with olefins derived from methane made from natural gas reduces carbon emissions by as much as 70 percent.

Source: Northwest Innovation Works