Construction Underway

Alyeschem North Slope Chemical and Fuels Project

Advancing in-state manufacturing through the local production of methanol and ultra-low sulfur diesel using Alaska's North Slope natural gas resources.

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Prudhoe Bay Project location on Alaska's North Slope
Up to $70M AIDEA project loan financing
About 80 Anticipated construction jobs
About 15 Anticipated permanent operations positions
Project Overview

Creating value from Alaska's North Slope resources

Alyeschem LLC is developing a chemical and fuels manufacturing facility in Prudhoe Bay to serve industrial operations on Alaska's North Slope.

The facility is designed to use North Slope natural gas and captured carbon dioxide to produce methanol and hydrogen. Hydrogen produced through the process will be used in refining high-sulfur diesel into ultra-low sulfur diesel.

Producing these critical industrial products closer to the resources and operations that use them can strengthen Alaska's industrial supply chain, reduce reliance on products transported from outside the state and create a new market for North Slope natural gas.

The plant is being constructed on an existing AIDEA-developed gravel pad, allowing the project to use previously developed industrial infrastructure.

Methanol

Methanol is used in North Slope oil and gas operations to help prevent freezing and protect pipelines, wells and related equipment.

Ultra-Low Sulfur Diesel

Ultra-low sulfur diesel is an important fuel for industrial equipment and operations on the North Slope.

Latest Project Update
Latest Construction Milestone Foundation pile installation complete

Construction continues to advance in Prudhoe Bay

Construction of Alyeschem's North Slope chemical and fuels manufacturing facility continues to make progress. Project officials reported completion of foundation pile installation, marking another significant milestone in development of the facility.

The milestone follows the project's May 2026 groundbreaking ceremony and represents continued progress at the Prudhoe Bay construction site.

AIDEA continues to work with Alyeschem and project partners as construction moves forward and additional project milestones are achieved.

"The completion of foundation piling work demonstrates that construction is moving forward and that another important project milestone has been reached. Alyeschem is the kind of innovative Alaska project that creates jobs, strengthens our energy supply chain and adds value to resources that have historically gone undeveloped." Randy Ruaro, AIDEA Executive Director
Benefits for Alaska

Supporting jobs, manufacturing and economic opportunity

The Alyeschem project combines private investment, public-purpose financing and Alaska resources to expand the state's industrial manufacturing capacity.

Alaska job creation

The project is expected to support approximately 80 construction jobs and 15 permanent operations positions.

In-state manufacturing

The facility will expand Alaska's capacity to manufacture methanol and ultra-low sulfur diesel near the operations that use those products.

Natural gas utilization

Alyeschem will create a new use for North Slope natural gas while adding value to an Alaska resource within the state.

Supply-chain resilience

Producing methanol and diesel locally can reduce reliance on long-distance supply routes serving North Slope industrial operations.

Private-sector participation

AIDEA's financing advances a project supported by substantial private-sector investment.

Financial return to AIDEA

The financing structure provides loan repayment, interest income and a permanent production-based royalty to AIDEA.

AIDEA Financing

Strategic financing for Alaska industrial development

AIDEA's participation helps advance construction and long-term operation of the facility while leveraging substantial private-sector investment.

$70M Maximum AIDEA project loan financing

Financing authorization and execution

In May 2024, the AIDEA Board unanimously approved Resolution G24-04, authorizing project loan financing of up to $70 million for construction and long-term operation of the Alyeschem facility.

AIDEA announced execution of the project loan agreements in July 2025. The financing was structured to complement private-equity investment while generating a financial return to AIDEA.

Financing structure

  • Project loan financing of up to $70 million
  • Private-equity participation alongside AIDEA financing
  • Repayment of loan principal and interest to AIDEA
  • A permanent AIDEA royalty based on facility output
  • Support for facility construction and long-term operation

Financing, not a grant

AIDEA's participation is structured as project loan financing. The structure provides for repayment of principal and interest and includes a permanent production-based royalty.

Project Timeline

Advancing from financing authorization to construction

May 2024

Financing authorized

The AIDEA Board approves Resolution G24-04, authorizing project financing of up to $70 million.

July 2025

Loan agreements executed

AIDEA executes project loan agreements supporting development of the North Slope facility.

May 2026

Groundbreaking held

Alyeschem, AIDEA and project partners gather in Prudhoe Bay to mark the beginning of facility construction.

2026

Foundation milestone reached

Installation of the facility's foundation piles is completed as construction continues to advance.

Photos & Media

Alyeschem groundbreaking and construction

View highlights from the May 15, 2026, groundbreaking ceremony and the latest construction activity at the Prudhoe Bay project site.

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Foundation pile installation at Alyeschem's chemical and fuels manufacturing facility in Prudhoe Bay.
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Completion of foundation pile installation marks another significant construction milestone.
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Attendees sign a commemorative foundation pile during the May 15, 2026, groundbreaking ceremony.
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Alyeschem groundbreaking ceremony in Prudhoe Bay, Alaska, on May 15, 2026.
Project News

Announcements and project updates

Review AIDEA announcements documenting the project's financing, development and construction.

May 2026 Alyeschem Holds Groundbreaking Ceremony for North Slope Chemical and Fuels Facility Press Release July 2025 AIDEA Commits $70 Million to Advance Alaska's First Methanol and Ultra-Low Sulfur Diesel Facility Press Release June 2024 AIDEA Applauds North Slope Borough Support for the Alyeschem Project Press Release May 2024 AIDEA Commits to Alyeschem Chemical and Fuels Project Using Natural Gas on the North Slope Press Release December 2023 AIDEA Approves Initial Alyeschem Project Evaluation Press Release
Frequently Asked Questions

About the Alyeschem project

What will the Alyeschem facility produce?

The facility is designed to produce methanol and ultra-low sulfur diesel using North Slope natural gas and captured carbon dioxide. Hydrogen produced through the process will be used in diesel refining.

Where is the project located?

The project is located in Prudhoe Bay on Alaska's North Slope. The facility is being constructed on an existing AIDEA-developed gravel pad.

What is AIDEA's role in the project?

AIDEA authorized and executed project loan financing of up to $70 million to support construction and long-term operation of the facility.

Is AIDEA's financing a grant?

No. AIDEA's participation is structured as project loan financing. The structure provides for repayment of principal and interest and includes a permanent royalty based on facility output.

How many jobs is the project expected to support?

The project is expected to support approximately 80 construction jobs and 15 permanent operations positions.

What is the current project status?

Construction is underway in Prudhoe Bay. The project has completed foundation pile installation, marking another significant construction milestone.

Why is local methanol production important?

Methanol is used in North Slope operations to help prevent freezing and protect wells, pipelines and related equipment. Local production can reduce reliance on methanol transported to the North Slope over long distances.

How does the project use Alaska natural gas?

The facility is designed to use North Slope natural gas as a manufacturing feedstock, creating a new local use for the resource.

Contact AIDEA

Learn more about AIDEA project financing

For more information about the Alyeschem project or AIDEA's financing and development programs, contact AIDEA at tel:+19077713000 or communications@aidea.org .

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