Home Care In Geismar, LA

Origin Materials Inc. announced on Feb. 16 the company has selected a site in Geismar, Louisiana, for the construction of its proposed Origin 2 facility, which would produce biobased materials and chemicals from wood residues. The company’s first facility, Origin 1, is under development in Sarnia, Ontario, and expected to be complete by the end of 2022.

According to Origin, the Geismar facility aims to produce carbon-negative materials used to make polyethylene terephthalate (PET) plastic, which is used in packaging, textiles, apparel and other applications. The facility will also produce hydrothermal carbon, which can be used in fuel pellets, as activated carbon, and as a replacement for black carbon.

The plant is currently scheduled to be operational in mid-2025. Once fully operational, the facility would take in an estimated 1 million dry metric tons of wood residues annually as feedstock. A statement released by Louisiana Economic Development indicates that feedstock would be sourced partly from the state’s timber mills and managed forests.

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Development of the Geismar project is subject to finalization of economic incentives. Pending state and local incentives are expected to be worth more than $100 million. In addition, a Private Activity Bond volume cap allocation from the State of Louisiana, pending finalization, is expected in the amount of at least $400 million. Private Activity Bonds are tax-exempt bonds authorized by state and local governments for the financing of qualified projects with private capital.

Development of the facility is expected to create 500 construction jobs, 200 local full-time positions, and between 500 and 1,000 indirect local jobs.

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“I welcome Origin Materials’ plans for a new facility in Louisiana,” Gov. John Bel Edwards said. “Their unique process of developing PET products from renewable wood fibers is yet another example of how the global shift toward sustainability can be a catalyst for economic investment and job creation in our state. The company’s carbon-negative mission aligns with our Climate Action Plan’s approach to limiting the severity of climate change while maintaining economic competitiveness in a low-carbon future.”

“Origin is excited to announce this investment in sustainable manufacturing with the Governor of Louisiana,” said John Bissell, co-CEO of Origin. “The local talent is world-class across refining, forestry and agronomy, feedstock logistics, and chemicals. The site sits along the Mississippi River with easy access to barge and rail and plentiful local wood residue feedstock. The proposed incentive package for building in the area is compelling and the local industrial cluster can provide access to hydrogen, ethylene, water treatment and more.”

With national and global initiatives to combat climate change, the state of Louisiana is falling in line.

At the start of this year, Louisiana Gov. John Bel Edwards and his Climate Initiatives Task Force unanimously approved the state’s inaugural Climate Action Plan, including suggestions on how to ease the effects of climate change, ways to maintain competitiveness in a low-carbon future, and insights into how to transition to clean energy.

“Costs are competitive relative to where they have been historically, so the ability to install these technologies have fewer bottom-line impacts,” says Prof. David Dismukes, executive director of the Louisiana State University Center for Energy Studies.

Also, the investment community is expecting publicly traded companies to reduce their exposure to climate-related risks, adds Dismukes. Otherwise, there will be a lack of investment in companies failing to transition and invest in green energy.

"There is a growing trend in customers becoming more selective in the projects and services they demand. Consumers increasingly want companies that are pursuing environmental best practices," Dismukes says.

Origin Materials recently announced plans for the construction of Origin 2, its first world-scale manufacturing facility, located in Geismar, La. The firm's patented technology will take the carbon found in wood residuals from local pulp mills and transform it into useful materials. Origin anticipates converting 1 million dry metric tons of wood each year, creating carbon-negative materials used to make polyethylene terephthalate plastic.

“Siting Origin 2 in Geismar underscores how Governor John Bel Edwards has identified the global transition to a sustainable economy as a real opportunity for the state, playing to Louisiana’s competitive advantages to remain global leaders in energy, industry, agriculture, and transportation,” said Origin’s co-CEO John Bissell in a statement.

This 150-acre Geismar facility is expected to create 500 construction jobs, 200 local full-time positions, and between 500 and 1,000 indirect local jobs, according to Origin, which expects to break ground in mid-2023 and open the plant in mid-2025.

Origin expects strong demand for materials, including $5.6 billion in existing off-take agreements and capacity reservations from customers and partners, to continue and remain well ahead of projected supplies for the foreseeable future.

In Baton Rouge, Project Cyclus will provide power for Fidelis’ Grön Fuels, a 73,000-barrel-per-day facility. This project is expected to produce renewable diesel, sustainable aviation fuel, green hydrogen and bio-plastic feedstock with a net-negative carbon dioxide footprint. This complex could include $9.2 billion of investment over several phases, according to the Louisiana Economic Development, and create 5,585 new jobs for this region.

At the Port of Columbia, Louisiana Green Fuels is planning to develop a renewable diesel plant that is projected to produce 32 million gallons of renewable fuel per year, by refining wood waste as the feedstock. The company is currently in the planning and feasibility stages and still moving toward a final investment decision. The Louisiana Economic Development said that during a 30-month building phase, the project could generate 450 construction jobs.

“I suspect [this is] just the beginning of a considerably larger number of [projects with] comparable intent. Very exciting times,” adds Dismukes. “Renewable energy project announcements have proliferated in the region, however, most are associated with larger utility-scaled projects.”

There is a growing trend in solar as well, according to Dismukes. “Overall market trends, and the demand for solar environmental attributes by large corporations are really driving these announcements as well as a number of regional utilities that are seeking to procure RE capacity,” he says.

While Dismukes expects to see continued growth and expansion and growth in green energy in this region, he also acknowledges there could be challenges for contractors in this space in the near term.

“There are increasing challenges at the local level comparable to some of the prior ‘not in my backyard’ issues that have arisen in renewable energy development, particularly in rural areas where renewable energy is competing with agricultural interests,” Dismukes says.

GEISMAR, LA, August 29, 2023 – Thirty-seven students from several universities and community colleges across the U.S. participated in paid summer internships at BASF’s site in Geismar, Louisiana.

Throughout the summer, the interns learned and interacted in experiential opportunities that allowed them to apply their academic knowledge to real-world situations. Beyond working on a range of projects, the students also focused on improving soft skills, including communication, leadership, teamwork, networking, and interview skills. Additionally, the group participated in several community projects, including volunteering at the Greater Baton Rouge Food Bank and Dreamnight, an annual event for pediatric cancer patients and their families sponsored by BASF and held at the Greater Baton Rouge Zoo. These opportunities allowed the interns to learn more about BASF’s focus on giving back to the community.

“Working alongside these brilliant young professionals is one of the most rewarding aspects of the summer at BASF in Geismar. We welcome the opportunity to learn from them and benefit from the new perspectives, insights, and ideas they bring to the table,” said Jerry Lebold, Senior Vice President and General Manager of BASF’s Geismar site.

“Their participation in BASF's summer internship program provides them with valuable education and professional experiences, giving them a competitive advantage when they enter the industry after graduation.”

BASF hosts interns who are majoring in the engineering disciplines including mechanical, electrical, industrial, computer, or chemical; environmental, health and safety; and process or instrumentation technology. Each intern is assigned responsibilities related to their chosen discipline. Employee mentors guide students through projects and provide them with counsel about career opportunities. Interns also meet with site leaders who share their career experiences in manufacturing and the importance of diversity, equity and inclusion in the workplace.

Summer interns working at BASF in Geismar include:

Louisiana State University

Louisiana Tech University

Southern University

University of Louisiana-Lafayette

Howard University

Ohio State University

River Parishes Community College

ITI Technical College

The summer internship program at the Geismar site is part of BASF’s local workforce development efforts to attract and retain top, diverse talent.

Internships for engineering, process technology and instrumentation students typically take place in the summer, and the application period runs through the fall and early spring. Engineering students from any four-year university can apply, and process technology and instrumentation students from any two-year college can apply.

For more information about BASF in Louisiana, visit www.basf.us/la.

About BASF

BASF Corporation, headquartered in Florham Park, New Jersey, is the North American affiliate of BASF SE, Ludwigshafen, Germany. BASF has approximately 16,000 employees in North America and had sales of $25.7 billion in 2022. 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. More than 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 €87.3 billion in 2022. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

Origin Materials, a carbon-negative materials company based in California, plans to spend at least $750 million to build a biomass manufacturing facility in Geismar that will turn wood residue into a key chemical used in plastic, Louisiana Economic Development announced Wednesday.

The project is expected to create 200 direct jobs with an annual salary of $99,100 plus benefits, an LED news release says. It should also create 857 indirect jobs in the metro area and 500 construction jobs.

It will be located at the 150-acre Parks Geismar site in Ascension Parish. Construction is slated to start in mid-2023, and the facility should be operational by mid-2025.

The plant will use sustainable wood residue, sourced in part from Louisiana’s timber mills and managed forests, to produce plant-based polyethylene terephthalate, or PET. The compound is primarily used in packaging, textiles and apparel. The plant is also expected to produce hydrothermal carbon, which can be used in fuel pellets.

“I welcome Origin Materials’ plans for a new facility in Louisiana,” Gov. John Bel Edwards said in a news release. “Their unique process of developing PET products from renewable wood fibers is yet another example of how the global shift toward sustainability can be a catalyst for economic investment and job creation in our state. The company’s carbon-negative mission aligns with our Climate Action Plan’s approach to limiting the severity of climate change while maintaining economic competitiveness in a low-carbon future.”

Headquartered in West Sacramento, California, Origin Materials has developed technology to turn the carbon found in biomass such as wood residue into goods while capturing carbon in the process.

“The demand for ‘net zero’-enabling materials is extremely strong, and we believe this plant will be instrumental in addressing demand for our products in the United States and internationally,” Origin Materials Co-Founder and Co-CEO John Bissell said in a statement. He thanked LED, the Baton Rouge Area Chamber and Ascension Parish for their help during site selection.

“The local talent is world-class across refining, forestry and agronomy, feedstock logistics and chemicals," Bissell added. "The site sits along the Mississippi River with easy access to barge and rail and plentiful local wood residue feedstock. The proposed incentive package for building in the area is compelling and the local industrial cluster can provide access to hydrogen, ethylene, water treatment and more.”

Louisiana lured Origin Materials in part through an incentive package that includes a $6 million performance-based grant paid out over six years to cover site infrastructure costs. Origin Materials is also expected to use the state’s Quality Jobs and Industrial Tax Exemption programs.

As part of its $3.15 billion purchase of Renewable Energy Group, energy giant Chevron has acquired a biorefinery off La. 30 near La. 73 in Geismar.

Chevron confirmed the deal Monday, which was approved by REG stockholders. REG is headquartered in Ames, Iowa, and operates 11 biorefineries in the U.S. and Germany.

REG produces a variety of biodiesels and other cleaner burning fuels from sources that include corn oil, used cooking oil and animal fat, among others. The company said it produced 519 million gallons of fuel in 2020.

The Geismar facility produces about 75 million gallons of renewable diesel each year, sourced from fatty acid feedstocks, the company’s website says. It also creates renewable propane from waste fats and oils and renewable naphtha, a byproduct of REG’s production process that can be blended with unrefined chemicals to produce a finished fuel product.

Chevron spokeperson Tyler Kruzich said the acquisition will not affect the Geismar facility’s planned $950 million expansion, which will boost capacity to 340 million gallons of renewable diesel annually. Officials broke ground on the project in October.

“Those plans will continue,” Kruzich said.

Kruzich said Chevron has no immediate plans for the workforce at the REG Geismar facility, but the company is hopeful all of the workers there will stay with Chevron.

He said REG has capabilities and customer relationships that Chevron did not previously have in the biodiesel industry.

“They helped establish the U.S. biofuels industry,” he said. “We’re bringing them in because they’re complementary to what we have.”

Chevron has said it wants to increase renewable fuels production capacity to 100,000 barrels per day by 2030. Kruzich said Chevron is about one-third of the way toward that goal. He said the company will be halfway toward that mark once the Geismar expansion is completed in 2024.

As part of the deal, REG President and CEO Cynthia “CJ” Warner has been appointed to Chevron’s Board of Directors, effective Monday.

“CJ Warner has deep experience across both the traditional and renewable energy sectors,” Chevron Chair and CEO Mike Wirth said in a statement. “Her perspective and guidance will be invaluable as Chevron leverages its strengths to deliver lower carbon energy to a growing world.”