State-backed Alyeschem plant reaches construction milestone

A state-backed chemical plant planned for Prudhoe Bay has completed installation of its foundation piles, the project's first announced construction milestone since breaking ground in May.

The Alaska Industrial Development and Export Authority said the final pile was installed Sept. 12. Its latest update does not provide a revised project cost or completion date. When Alaska News covered the groundbreaking, AIDEA said the facility was expected to begin operating in late 2027.

The state's support is not a $70 million grant. AIDEA has authorized and executed project loan financing of up to $70 million. Public board minutes describe private investors matching AIDEA's contributions dollar for dollar. The financing calls for repayment of principal and interest, plus a permanent royalty tied to plant output.

Alyeschem is designed to produce methanol and ultra-low sulfur diesel from North Slope natural gas and captured carbon dioxide. Methanol is used in oil-field operations to prevent freezing and corrosion. Producing it at Prudhoe Bay could reduce reliance on supplies shipped to Alaska and trucked north on the Dalton Highway.

AIDEA estimates the project will support about 80 construction jobs and 15 permanent operating positions. Those figures, along with projected emissions and transportation savings, come from the project's backers.

The foundation work confirms that construction is underway. AIDEA's public project page does not state how much of the authorized loan has been drawn or provide a current independent assessment of the late-2027 startup target.