Job growth, environmental benefit: Northwest Innovation Works to build facility at Port of Tacoma

Lease agreement with Port of Tacoma a key milestone in project development

TACOMA –The Port of Tacoma Commission today authorized a lease with Northwest Innovation Works (NWIW) to build a two-phase, $1.8 billion manufacturing plant on the site of the former Kaiser facility. The project will create more than 200 permanent, family-wage jobs in Pierce County and up to 1,000 jobs at the peak of construction.  In addition, the facility will generate significant tax revenues for the region. 

Today’s vote is a crucial step in the project’s development, paving the way for NWIW to begin permitting activities with the appropriate regulatory agencies. The lease agreement calls for a feasibility period, which will allow NWIW to conduct in depth analysis of environmental, safety, and other permitting related issues. After all contingencies have been satisfied and permitting accomplished, construction and operations would commence.

“I'm proud to see the Port of Tacoma and NW Innovation Works reaching another milestone for our state’s clean energy future,” said Governor Jay Inslee. “Washington state is working to turn the global challenge of carbon pollution into new jobs and strong communities. This project at the former Kaiser site will boost our regional economy while eventually providing a needed supply of clean methanol to Asia.”

“Our partnership with the Port of Tacoma demonstrates that we don’t have to choose between a healthy environment and a thriving economy. We can have both,” said Simon Zhang, CEO of NW Innovation Works. “This project is an important component of the effort to reduce China’s dependence on coal, and it is also a significant investment in Tacoma’s economic future.  We want to thank the Governor for his support of a project that is a win for the local economy and the global environment.”

“We are pleased to work with Northwest Innovation Works as it explores building a facility that would support reduced air emissions in manufacturing while providing valuable jobs for our community,” said Tacoma Port Commission President Clare Petrich. “This proposal supports the Port’s commitment to return industrial properties back to productive use, diversify our cargo mix, create jobs and improve global air quality.”

Through a clean and proven process, the proposed plant will convert natural gas to methanol.  Currently in China, coal is used to produce methanol.  The methanol produced in Tacoma will be exported to Asia, including Dalian, where it will be used as feedstock to produce olefin, a common ingredient in the manufacturing of everything from plastic water bottles to cell phone covers.  Natural gas offers a cleaner, more environmentally sustainable way to manufacture these everyday products. The natural gas will be brought to the facility via pipeline and then sent to Asia via ship; no truck or rail traffic will be necessary. 

"Expansion of the public-private partnership between NW Innovation Works and the Port of Tacoma is more proof that clean energy holds great promise for Washington’s economy. It’s exciting to see this relationship, cultivated during the Governor’s China trade mission last fall, continue flourishing,” said Brian Bonlender, Washington State Commerce Director.

“NWIW is honored to partner with the Port of Tacoma on this development. Today marks the first step in a long partnership and we are grateful for their leadership and support,” said Joe Smith, President of NWIW Tacoma. “We look forward to working together with the port and the community, and to returning the Kaiser site to productive use for the region’s economy.

The global demand for methanol as feedstock for olefin is high, and NWIW is also working with Port Westward in Klatskanie, OR, and the Port of Kalama, WA on similar projects.  NWIW is partnering with the Dalian Xizhoug Island Petrochemical Park in Dalian, China, where they are building a facility to receive the methanol produced in the Pacific Northwest. 

NWIW has a number of international partners, including the Chinese Academy of Science, a ministry-level agency of the Chinese government focused on research and technology.  H&Q Asia Pacific, a Silicon Valley private equity firm with strong ties with Intel, IBM and Starbucks, is also a partner.

Now that the lease agreement has been finalized, NWIW and port officials will begin working with the City of Tacoma and other agencies to begin permitting for the facility.