US-based South Louisiana Methanol has outlined an investment of $1.3bn for the development of a new methanol production facility in the state of Louisiana.

Texas-based Zero Emission Energy Plant and New Zealand-based Todd Corporation are joint owners of the project that will create over 400 jobs in direct and indirect employment.

Methanol is employed in the production of biodiesel via transesterification reaction as well as used in plastics, polyester fibers and fabrics, pesticides, fuel additives, pharmaceuticals and adhesives for the wood products industry.

South Louisiana Methanol CEO Barry Williamson noted that the plant will be the largest methanol plant in North America and employ proven technology resulting in a more efficient process for CO2 consumption.

Construction of the facility will commence in the October to December quarter of 2013 with commercial operations slated to begin in the middle of 2016.

Louisiana Governor Jindal noted, "South Louisiana Methanol’s investment is the latest example of the renaissance our energy and chemical industries are experiencing today, which is creating thousands of good-paying jobs for our people."