Home Care In Geismar, LA

The Louisiana Department of Environmental Quality is on track to approve an air pollution permit for a $1 billion petrochemical plant in Geismar, which would be the world’s largest plastics plant of its kind.

Mitsubishi Chemical Co. plans to build a $1 billion facility on a 77-acre site in Geismar that’s capable of producing 385,000 tons annually of methyl methacrylate (MMA), a chemical used in a variety of paints, adhesives, building panels and other acrylic polymers. The company is asking LDEQ for a permit that would allow the plant to emit hundreds of tons of toxic gasses, as well as nearly 781,000 tons of greenhouse gas per year. It would rank the plant among the state’s top 50 pollution emitters, according to data from the U.S. Environmental Protection Agency.

Located along the Mississippi River in Ascension Parish, Geismar is within the so-called “Cancer Alley” petrochemical corridor between New Orleans and Baton Rouge that has among the worst air quality and highest rates of cancer in the country. More than 5,000 residents live within a 3-mile radius of the proposed Mitsubishi plant, and they are already surrounded by a number of petrochemical plants such as those owned by BASF, Occidental Chemical Corp, Shell Chemical, Rubicon, Westlake Chemical and Air Products.

In a notice requesting comments from the public regarding whether or not to grant the air permit, LDEQ stated that the project is not “expected to have a significant adverse impact on soil, vegetation, visibility, or air quality in the area of the facility.”

Some Ascension Parish residents and environmental activists disagree. They voiced opposition at a public hearing LDEQ held Thursday and disseminated statements to reporters afterwards.

Pamela Ambeau, who lives in Ascension Parish and helps run the local environmental group Rural Roots Louisiana, said the Mitsubishi facility would add air pollution to an area already overloaded with petrochemical plant emissions.

“The air here is already so dirty that the kids can’t play outside anymore,” Ambeau said in a statement. “I just can’t believe they’re trying to build another toxic plant right on top of us. It makes me furious, and I know it makes my neighbors and family members just as furious, too. That’s why we’re telling LDEQ loud and clear that Mitsubishi is not welcome here, and that we’re not going to stop until this plant is gone and our kids can play outside again.”

Former Gov. John Bel Edwards helped bring Mitsubishi to the state back by offering a $4 million grant and access to lucrative incentives such as the Industrial Tax Exemption Program (ITEP) and Quality Jobs tax credit program. The company has qualified for roughly $168 million in ITEP incentives over a 10-year period from Ascension Parish taxpayers.

The project is expected to have an economic impact of over $1 billion and create 125 permanent jobs with an average annual salary of $100,000, according to a Louisiana Economic Development statement from Dec. 8, 2020.

The Geismar plant would be Mitsubishi’s third globally that produces MMA using ethylene, a chemical synthesized from natural gas. The company’s only other MMA-producing site in the U.S. is in Memphis but uses older technologies. The company said its newer technology has a “significantly lower carbon footprint.”

“The Geismar project would be the third and largest commercial application of (Mitsubishi’s) proprietary Alpha technology, which was first deployed in 2008,” company executive Hitoshi Sasaki said. “This technology and plant design are perfectly matched for the shale gas-based feedstock slate in the United States, and strengthens our global leadership in the MMA merchant market.”

LDEQ is expected to grant the air permit this year, and construction could begin as early as 2025.

Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. AP and Getty images may not be republished. Please see our republishing guidelines for use of any other photos and graphics.

Creating 90 permanent and 1,500 temporary jobs

Baton Rouge, LA– Today, at the Louisiana Mid-Continent Oil and Gas Association’s (LMOGA) annual conference, Governor Jeff Landry announced a $100 million bond allocation for the expansion project at Chevron’s Geismar Renewable Diesel Plant. This expansion project is expected to bring 90 new permanent jobs and 1,500 temporary jobs. While there, he also signed a Proclamation and an Executive Order on behalf of the oil and gas industry. The Proclamation states that Louisiana is open for business and our administration will work tirelessly to ensure the Oil and Gas Industry can thrive in our State. The Executive Order directs the Louisiana Department of Natural Resources and the Louisiana Department of Environmental Quality to promote the streamlining of permitting processes associated with the Oil and Gas Industry.

“The Oil and Gas Industry built Louisiana and keeps our economy moving. Our administration will always be a strong voice for this industry and support the vital jobs it creates. This project will not only benefit Louisiana’s hardworking men and women, but it will also help reduce our carbon emissions. I am thrilled to announce this funding, and I look forward to seeing the incredible benefits this project will bring to our state,” said Governor Jeff Landry.

“Chevron is very grateful to Governor Landry for his support of our improvement and expansion project at our renewable diesel production facility in Geismar,” said Daniel Dascher, Geismar Plant Manager. “This project helps us to advance our goal of providing affordable, reliable, ever-cleaner energy through the production of lower carbon intensity fuel.”

Background:

The improvement and expansion project was announced with Governor John Bel in 2020 and Chevron received approval for the bond issuance from the State Bond Commission in 2023; however the former Governor never gave them any bond allocation. Under Governor Jeff Landry, Chevron will now receive the $100 million bond allocation, mostly made up of carryover bonds.

The Geismar Facility was the first stand-alone renewable diesel production facility in the U.S. when it was completed in 2010. Once completed, the improvement and expansion project will increase site capacity by 250 million gallons, from 90 million gallons to 340 million gallons per year. Renewable diesel is sourced from multiple renewable feedstocks—including soybean oil, canola oil, used cooking oils and animal fats. It works just like petroleum diesel, making it a drop-in fuel compatible with vehicles on the road today.

###

GEISMAR, La. – Synthetic rubber manufacturer Lion Elastomers has invested $22 million to construct a new multi-level production building housing two new finishing lines at its manufacturing facility in Ascension Parish.

The expansion will increase production capacity at the plant, which supports the supply chains of automobile tire manufacturers and production of a broad range of other rubber goods. With the reinvestment in its Geismar plant, Lion Elastomers will retain 176 Capital Region jobs.

“Lion’s Geismar manufacturing facility has provided jobs for Louisiana’s skilled workers for nearly 60 years,” Gov. John Bel Edwards said. “The company’s commitment to update and expand its operation ensures that those jobs will remain in Ascension Parish for many years to come. Once again, we see the strength of Louisiana’s manufacturing sector, and the important role our state plays in the manufacture of consumer goods used around the world.”

The Geismar facility began operations in 1964 as the United States Rubber Company, later becoming Uniroyal Chemical Company and then Chemtura. Lion Elastomers, which also has manufacturing facilities in Port Neches and Orange, Texas, purchased the site in 2007.

“Louisiana and Ascension Parish are favorable locations for investment due to a strong workforce, availability of raw materials and utilities, and central location to distribute products to North American and international markets,” said Steve Isaacs, Director of Process Technology and Optimization. “This project will strengthen Lion Elastomers’ manufacturing position, enhance quality and service for EPDM consumers, and protect and/or expand jobs at the Geismar site.”

Lion Elastomers began construction on the new 8,405-square-foot structure in Q3 2021. The company says it has achieved substantial completion and is in the commissioning phase, with full commercial production to follow before the end of the year.

To secure the project, the State of Louisiana offered Lion Elastomers an incentive package that includes a performance-based $375,000 Retention and Modernization grant.

“The importance of the Highway 30 corridor cannot be overstated,” said Ascension Parish President Clint Cointment. “By investing in its Geismar facility and sustaining the local workforce, Lion ensures continued growth in a thriving industrial area supported by the parish, region and state.”

About Lion Elastomers Lion Elastomers is a premier manufacturer of elastomeric polymers and a business partner of choice for its customers when they take on complex business challenges of today. Read more at LionElastomers.com.

About LED Louisiana Economic Development is responsible for strengthening the state’s business environment and creating a more vibrant economy. It is the only state agency in the U.S. accredited by the International Economic Development Council, boasting award-winning programs like LED FastStart, rated the No. 1 customized workforce training program in the U.S. 13 years in a row. In 2021, LED attracted 64 new economic development projects representing over 18,100 new direct and indirect jobs, 9,700 retained jobs and more than $20.5 billion in new capital investment. Explore how LED cultivates jobs and economic opportunity for the people of Louisiana and employers of all sizes at OpportunityLouisiana.com.

GEISMAR, LA, January 11, 2023 – BASF has broken ground on the third and final phase of the methylene diphenyl diisocyanate (MDI) expansion project at its Verbund site in Geismar, Louisiana, announced in July 2022. The company will increase production capacity to approximately 600,000 metric tons per year by the middle of the decade to support the ongoing growth of its North American MDI customers.

The investment for this final expansion phase, which takes place from 2022 to 2025, amounts to $780 million. Including the first and second phases, the investment volume totals around $1 billion, making the MDI expansion project BASF’s largest wholly owned investment in North America.

“BASF already ranks among the largest and most forward-looking chemical companies in the United States,” said Michael Heinz, Chairman and Chief Executive Officer, BASF Corporation. “Through this investment, we demonstrate our commitment to meeting the needs of our customers while strengthening our foundation for continued growth in the important U.S. market.”

BASF welcomed Clay Schexnayder, Speaker of the House for the Louisiana State Legislature for a ceremonial ‘tilling-of-the soil’ to officially mark the groundbreaking of the final phase of the expansion.

“We are committed to continuing the success story together with our North American MDI customers,” said Stefan Doerr, Senior Vice President, Monomers North America. “BASF is investing to support our customers in various industries with significant growth potential in MDI applications, including transportation, automotive, footwear and furniture.”

Kicked off in 2018, the expansion project follows a staggered approach. First, a new MDI synthesis unit was put in operation in October of 2020. The second phase, which started operations in 2021, expanded several existing upstream units. The third and final phase will add new upstream units and a splitter. Leveraging state-of-the-art technology, the expansion will showcase the highest safety standards combined with advanced digitalization in its operations.

About BASF

BASF Corporation, headquartered in Florham Park, New Jersey, is the North American affiliate of BASF SE, Ludwigshafen, Germany. BASF has more than 16,700 employees in North America and had sales of $25.9 billion in 2021. For more information about BASF’s North American operations, visit www.basf.com/us.

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 111,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €78.6 billion in 2021. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the U.S. Further information at www.basf.com.

“Air Products’ new Geismar facility was successfully placed onstream and met the customer’s desired schedule and product needs. The facility is state-of-the-art and offers high reliability and sustainability, with enhanced energy efficiency and reduced emissions. We have a long-standing relationship with Huntsman, and we are pleased this new world-scale facility and long-term supply agreement expands our support for Huntsman’s operations,” said Dr. Samir J. Serhan, chief operating officer at Air Products.

Tony Hankins, president of Huntsman’s Polyurethanes division said, “We are appreciative of the professionalism and dedication of the Air Products and Huntsman project teams, which enabled the on-time completion of this world scale HyCo facility. The Huntsman Geismar team delivered a significant and complex element of the project, constructing interconnecting facilities and process controls to flow the products and utilities between the sites. The new plant substantially improves HyCo reliability and strengthens the reliability and environmental performance of our upstream MDI-polyurethanes assets at Geismar, which in turn underpins our drive into downstream markets.”

The new facility is located on land leased from Huntsman and produces approximately 6.5 million standard cubic feet per day (MMSCFD) of CO, 50 MMSCFD of hydrogen, and up to 50,000 pounds per hour of steam. The facility is also capable of being expanded to increase CO supply in the future to support additional demand.

With the additional hydrogen production facility, Air Products continues to expand the capacity and capabilities of its GCP. Air Products’ GCP, dedicated in 2012, is an over 600-mile pipeline span that currently stretches from the Houston Ship Channel in Texas to New Orleans, Louisiana.

“Additions to our GCP like this one in Louisiana continue to enhance the reliable hydrogen supply to all the customers along the pipeline network. Air Products is always seeking to add product supply capacity from more sources of hydrogen for our customers to build on our well-established pipeline system in the Gulf Coast,” said Bill Hammarstrom, president – HyCO Americas at Air Products.

In January 2020, Air Products announced another addition to the pipeline is coming with an SMR to be built in Texas City, Texas. When the Texas City facility is added to the GCP system, customers will be reliably served by over 1.7 billion feet of hydrogen per day from 24 connected production facilities.

Pipelines offer a safe, robust and reliable supply of hydrogen to refineries and petrochemical manufacturers around the world. In addition to the Gulf Coast Pipeline, Air Products also has hydrogen pipelines in California in the U.S.; in Sarnia, Ontario, Canada; and in Rotterdam, the Netherlands.

Huntsman Media Contact: Gary Chapman Tel: (281) 719-4324