The Alaska Industrial Development and Export Authority has finalized loan agreements providing up to $70 million in project financing for a groundbreaking energy facility on the North Slope, to be built by Alyeschem LLC.
The facility will be the first of its kind in Alaska, producing methanol and ultra-low sulfur diesel from stranded natural gas and waste carbon dioxide.
The project, part of Alyeschem’s Distributed Chemical Manufacturing platform, is designed to turn previously untapped resources into essential fuels and chemicals for oilfield operations. Methanol is a critical fluid used to prevent pipeline corrosion and freezing and producing it locally will reduce dependence on imported fuels and bolster the resilience of the Trans-Alaska Pipeline System.
“This facility is an Alaskan solution to long-standing logistical challenges, which will allow us to replace key fluids currently imported to the North Slope with locally made methanol and clean diesel,” said I.R. Wilcox, CEO of Alyeschem. He emphasized the project’s long-term role in sustaining the North Slope’s energy economy and adapting to global market demands.
The hydrogen generated in the process will be used to refine high-sulfur diesel into ultra-low sulfur diesel, improving fuel quality and cutting emissions for oilfield operations. Alyeschem plans to expand production in the future to include dimethyl ether and chemicals used in enhanced oil recovery.
Construction will take place on a previously developed AIDEA gravel pad, minimizing environmental impact. With permits secured and front-end engineering completed, Alyeschem is preparing to break ground. The location was selected to serve oilfield operations directly, reducing long-haul transport needs and logistical bottlenecks.
The facility is projected to eliminate approximately 4,000 truck trips annually, significantly reducing emissions and road wear across the region. It is also expected to cut CO₂ emissions by an estimated 93%—about 45,000 tons per year—compared to current fuel delivery methods.
Backed by strong support from Gov. Mike Dunleavy, the North Slope Borough, and state leaders, the project is anticipated to generate over $5 million annually in tax and royalty revenues for the state and borough. AIDEA expects to receive at least $2.39 million annually in loan repayments and royalties.
“This is exactly the kind of project AIDEA was created to support,” said AIDEA Executive Director Randy Ruaro. “It unlocks the economic value of stranded gas, creates jobs, and strengthens Alaska’s energy infrastructure for decades to come.”
AIDEA Board Chairman Dana Pruhs echoed that sentiment, saying, “This Alaskan project meets AIDEA’s mission by creating Alaskan jobs and providing an economic return to Alaskans for generations.”
Construction is expected to create around 80 jobs, with 15 permanent positions once the facility is operational. Alyeschem has committed to hiring Alaskans and supporting long-term employment in the Arctic.
Geoff Johns, AIDEA’s Chief Financial Officer, called the project a high-impact investment: “Alyeschem’s facility not only generates strong returns for public funds but also catalyzes private capital and innovation in Alaska’s energy sector.”
With this strategic investment, Alaska takes a bold step toward transforming its stranded natural gas into an engine for clean fuel, economic development, and energy resilience.
This sounds like a truly great project. Wondering if there is another shoe, not yet on the floor.
Liberals will be screaming, leave the fossil fuels in the ground or we will all die. Yet, they won’t have any problem spending the revenue it will produce.