Methanex Submits Environmental Studies for Windfarm in Chilean Cabo Negro Methanol Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Methanex Chile S.A. (Santiago de Chile, Chile), the subsidiary of methanol producer Methanex (NASDAQ:MEOH) (Vancouver, Canada), recently submitted an environmental impact study for the construction of 2.34-megawatt (MW) Cabo Negro I windfarm in southern Chile.

The windfarm, which has a total investment value estimated at $5 million, will supply electricity to the Cabo Negro complex. The construction kickoff is estimated to be in January, and the aerogenerators will be mounted six months later. The plant will become operational in November 2010 if the permits are granted, according to plant officials.

The Cabo Negro complex is located 28 kilometers north of Punta Arenas in the Magallanes province, XII Magallanes y Antartica Chilena region. The project will utilize three 780-kilowatt aerogenerators and will include a 13.2-kilovolt transmission line.

Methanex's primary aim is to use the new generation to save natural gas used during the methanol production; also, the company wants to promote renewable energy sources in the region. According to plant officials, part of the generated electricity could be sold to the National Grid in the near future.

Methanex has four methanol plants in the Cabo Negro complex, with a combined annual production capacity of 3.8 million tonnes. Cabo Negro is located in Punta Arenas, the heart of Chile's petroleum and gas-producing region.

Since 2007, the Cabo Negro Complex's production has been limited to 30% of installed capacity due to the shortage of natural gas supply from Argentina.

At the end of 2008, Methanex Chile announced that the company was studying the possibility of replacing the existing natural gas-fired boilers by coal-fired boilers, to supply vapour to the existing steam turbines located at the Cabo Negro Complex. This investment is estimated at $40 million but is on hold due to financing.

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