DECD0000081
Cooperative Agreement
Overview
Grant Description
The Star E-Methanol Project, led by a U.S. subsidiary of Orsted, plans to use captured carbon dioxide from a local industrial facility to produce e-methanol to reduce the carbon footprint for hard-to-electrify sectors like shipping.
Orsted’s facility is estimated to produce up to 300,000 metric tons of e-methanol per year and would reduce the carbon footprint by 80% or more than traditional production methods.
This project expects to prove out both the supply and demand for clean hydrogen-derived alternative fuels for the marine shipping and transportation sector.
These sectors currently rely on energy-intensive fossil-derived fuels to move the world’s goods.
The Star E-Methanol Project is estimated to create 300 construction jobs and 50 permanent jobs.
Orsted has committed to working with the University of Houston to develop a curriculum around zero-carbon fuels and the hydrogen economy.
Overall, this project intends to serve as a catalyst to equip workers with the skills to take part in the new energy economy.
Orsted’s facility is estimated to produce up to 300,000 metric tons of e-methanol per year and would reduce the carbon footprint by 80% or more than traditional production methods.
This project expects to prove out both the supply and demand for clean hydrogen-derived alternative fuels for the marine shipping and transportation sector.
These sectors currently rely on energy-intensive fossil-derived fuels to move the world’s goods.
The Star E-Methanol Project is estimated to create 300 construction jobs and 50 permanent jobs.
Orsted has committed to working with the University of Houston to develop a curriculum around zero-carbon fuels and the hydrogen economy.
Overall, this project intends to serve as a catalyst to equip workers with the skills to take part in the new energy economy.
Awardee
Funding Goals
1. DESIGN, ENGINEER, CONSTRUCT AND SAFELY DEMONSTRATE SUCCESSFUL OPERATION OF A COMMERCIALLY VIABLE EMEOH FACILITY. THIS DEMONSTRATION WILL PRODUCE EMEOH FROM A CLEAN HYDROGEN (H2) FEEDSTOCK, PREFERABLY ELECTROLYZERS, AND A SUSTAINABLE SOURCE OF CO2, PREFERABLY BIOGENIC.
2. DEMONSTRATE THE BENEFITS OF EMEOH COMPARED TO CONVENTIONAL METHANOL (MEOH). ORSTED WILL PERFORM A GATE-TO-GATE LIFE CYCLE ANALYSIS (LCA) WITH 1 TON OF METHANOL AS THE FUNCTIONAL UNIT TO DEMONSTRATE AND VERIFY REDUCTIONS IN CARBON INTENSITY (CI) OF AT LEAST 75% FOR THE IMPLEMENTATION OF THE EMEOH PRODUCTION PROCESS COMPARED TO THE CONVENTIONAL BENCHMARK MEOH PRODUCTION PROCESS. THE PROJECT’S LCA WILL ALSO VERIFY ACHIEVEMENT OF 80% REDUCTION IN GREENHOUSE GAS EMISSIONS WITHIN THE SAME MODEL BOUNDARIES.
3. DEMONSTRATE REDUCTIONS IN CRITERIA AIR POLLUTANT (CAP) EMISSIONS BY COMPARING THE EMEOH PRODUCTION PROCESS TO THE CONVENTIONAL BENCHMARK MEOH PRODUCTION PROCESS WITHIN THE LCA MODEL BOUNDARY. THE PROJECT IS EXPECTED TO ACHIEVE GREATER THAN 50% REDUCTION IN SULFUR OXIDES (SOX), NITROGEN OXIDES (NOX), AND PARTICULATE MATTER (PM) EMISSIONS.
4. DEMONSTRATE POTENTIAL FOR LARGE SCALE EMEOH PRODUCTION AS A SIGNIFICANT SOURCE OF OFFTAKE FOR CO2 AND CLEAN H2 MARKETS IN THE GULF COAST.
Grant Program (CFDA)
Awarding / Funding Agency
Place of Performance
Multi-State
United States
Geographic Scope
Multi-State
Related Opportunity
Analysis Notes
Termination This cooperative agreement was reported as terminated by the Department of Government Efficiency (DOGE) in July 2025. See All
Orsted Star P2x was awarded
E-Methanol Project: Revolutionizing Clean Fuel Production Shipping Industry
Cooperative Agreement DECD0000081
worth $99,000,000
from the Department of Energy in December 2024 with work to be completed primarily in Multi-State United States.
The grant
has a duration of 8 years and
was awarded through assistance program 81.255 Clean Energy Demonstrations.
The Cooperative Agreement was awarded through grant opportunity Industrial Decarbonization and Emissions Reduction Demonstration-to-Deployment Funding Opportunity Announcement.
Status
(Ongoing)
Last Modified 6/18/25
Period of Performance
12/1/24
Start Date
11/14/32
End Date
Funding Split
$99.0M
Federal Obligation
$0.0
Non-Federal Obligation
$99.0M
Total Obligated
Activity Timeline
Transaction History
Modifications to DECD0000081
Additional Detail
Award ID FAIN
DECD0000081
SAI Number
None
Award ID URI
SAI EXEMPT
Awardee Classifications
For-Profit Organization (Other Than Small Business)
Awarding Office
892436 OFFICE OF CLEAN ENERGY DEMONSTRATIONS (OCED)
Funding Office
892410 OFFICE OF CLEAN ENERGY DEMONSTRATION
Awardee UEI
R6MWAJWMHA93
Awardee CAGE
None
Performance District
90
Modified: 6/18/25