Arq Investing $40M In Innovative Fuel Facility In Louisiana

The energy technology company will develop the industrial facility in St. Rose, LA to produce its proprietary Arq Fuel product.

Energy technology company Arq will invest up to $40 million to develop an industrial facility in St. Rose, LA to produce the company’s proprietary Arq Fuel™ product. The site will receive an intermediate wet-cake material produced from discarded mined materials, and will transform it into a cleaner and valuable blending component for oil products entering the power-generation and marine industries.

“Arq’s St. Rose facility is an important investment and milestone in our company’s ambitions to make a transformative impact in the energy industry,” said Arq CEO Julian McIntyre. “The Arq Fuel we produce at St. Rose and blend into liquid fuels is responsibly sourced transition fuel, which is providing a lower-cost bridge to a cleaner future. As Arq worked on locating its initial U.S. Gulf Coast facility, the State of Louisiana, St. Charles Parish Economic Development and Greater New Orleans Inc. team have been extremely helpful, and we are looking forward to working and growing together in Louisiana.”

Arq, St. Rose, Louisiana
(Photo: Arq)

Based in London with U.S. headquarters in Kentucky, Arq is an energy technology company that recycles mining waste into its proprietary fuel. The fuel’s lower greenhouse-gas profile will help industries meet evolving regulatory demands. Arq’s process creates a nearly pure hydrocarbon product and does not require the extraction of any new natural resources from the earth.

Arq’s project will be located on a 5-acre tract owned by International-Matex Tank Terminals (IMTT) and include a thermal drying facility; blending and product-handling equipment; transportation infrastructure; and storage tanks. Arq will create 12 new direct jobs with an average annual salary of $52,000, plus benefits. Louisiana Economic Development (LED) estimates the project also will result in 31 new indirect jobs, for a total of 43 new jobs in Louisiana’s Southeast Region.

“The combination of an attractive site and a well-trained workforce allowed St. Charles Parish to emerge as the preferred location in the country for this project,” said President and CEO Michael Hecht of GNO Inc. “Arq’s innovative technology will showcase how greater New Orleans can be a leader in both value-added manufacturing and clean energy, and we look forward to supporting their success.”

LED began discussing a potential project with Arq in January 2019. Arq evaluated multiple sites across the U.S. Gulf Coast before selecting the site in St. Rose. To secure the project, Louisiana will be providing Arq with an opportunity to participate in the state’s Quality Jobs and Industrial Tax Exemption programs.

“Arq’s investment is confirmation that Louisiana’s highly skilled workforce and transportation infrastructure continue to make the state a prime destination for new investments,” said Gov. John Bel Edwards. “The innovative processes Arq will deploy in Louisiana show that we can build on our state’s legacy as an energy leader by developing new energy solutions for the future.”

The facility will receive intermediate product from Arq’s site in Corbin, KY, for final drying, blending and shipment to customers. Primary use of the product will be for residual fuel oil in the utility market and bunker fuel for commercial ships and barges.

“Arq is planning on doing some exciting stuff in our parish. Their one-of-a-kind process takes the byproduct of one manufacturing process and uses it for another process,” said St. Charles Parish President Matthew Jewell. “We are looking forward to having Arq as a partner in St. Charles Parish.”

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