Texas-based Galveston LNG Bunker Port (GLBP) and New York-based climate tech company Loa Carbon have signed a letter of intent (LOI) where Loa Carbon will provide renewable e-methane directly to GLBP for liquefaction.
This will enable GLBP—a joint venture between Seapath and Pilot LNG—to provide e-LNG fuel to the maritime bunker market in the US Gulf Coast.
Located on the Texas City Ship Channel in the Texas City industrial area, the GLBP facility will serve as a platform to supply e-LNG by fuel barge to the rapidly expanding fleet of LNG-fueled vessels in the greater Houston-Galveston region.
The GLBP facility is optimally located to serve major ports, including Port Houston, the Port of Galveston and the Port of Texas City.
As explained, Texas City location offers GLBP and Loa Carbon unique advantages for supplying cost-competitive e-methane production. There is abundant CO₂ feedstock available with Texas City, which is home to extensive chemical and refining infrastructure. This offers a significant amount of industrially captured CO2, with potential for future scale-up.
In addition, the region offers biogenic CO2, with Loa having identified nearby landfills. What is more, the State of Texas offers low-cost renewable power. ERCOT’s high-renewables grid and competitive electricity rates, combined with the 45V hydrogen production tax credit, enable cost-competitive green hydrogen production.
Specifically, Loa Carbon’s process uses renewable electricity to split water into hydrogen, and then combines that hydrogen with captured CO₂ in a catalytic reactor to create e-methane.
Co-locating Loa Carbon’s e-methane production modules on the Galveston LNG Bunker Port site enables direct injection into the terminal city gate systems for FuelEU compliance, ensuring blending with conventional LNG, and creating a one-stop fueling for shipowners requiring both volume and carbon compliance.
The GLBP project is projected to come online in 2028 as the U.S. Gulf Coast’s first dedicated LNG liquefaction facility for marine bunkering .
“This integrated approach provides shipowners a clear pathway to scalable, cost-transparent, ultra-low-carbon fuel without requiring operational changes to their vessels or bunkering procedures. We are pleased to be partnering with GLBP, the leading and only proposed dedicated LNG bunker project in the Houston-Galveston region,” Dan Wojno , COO for Loa Carbon, noted.
“This partnership with Loa Carbon will enable GLBP to offer low-carbon e-LNG to customers in search of sustainable fuel solutions. GLBP will be the first supplier of LNG bunker fuel to provide e-LNG in North America. The e-LNG supplied to our customers will have one of the lowest Carbon Intensity scores on a well-to-wake basis. By producing LNG at the supply side of the value chain, we eliminate the need for shipping and storage, thereby reducing overall emissions compared to LNG bunker fuel delivered in Europe or Asia. Simply put, partnering with Lv makes perfect sense,” Jonathan Cook , CEO for Pilot LNG, concluded.
Earlier this year, GLBP inked its first sales and purchase agreement (SPA) for the supply of LNG of its proposed liquefaction project in Texas City Industrial Complex within Galveston Bay.
Under the agreement, GLBP will deliver LNG to Dunmura, the 2024-launched bunkering company, on a free-on-board (FOB) or a delivered-ex-ship (DES) basis.
This content is available after accepting the cookies.