Ferguson: Alternative Energy Projects Need Congressional Support
May 01, 2006 04:17 PM US Eastern Timezone
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WASHINGTON--(BUSINESS WIRE)--May 1, 2006--The United States is on the verge of developing new large-scale alternative energy sources to aid domestic industries but needs the help of Congress if potential projects are ever going to gain momentum.
That was the message J. Brian Ferguson, chairman of the board and CEO of Eastman Chemical Company (NYSE:EMN), delivered today to the U.S. Senate Committee on Energy and Natural Resources. Ferguson said that industrial-scale gasification, a flexible technology that could provide raw materials for chemicals and fertilizers or hydrogen and fuels, is ready for deployment now. To be successful, however, provisions in the Energy Policy Act of 2005 that provide incentives and loan guarantees to potential projects must be clarified.
"I'm confident that there are projects that will be ready to go as soon as this process is clarified," Ferguson said in testimony before the committee. "But we need to start with active dialogue."
The Energy Policy Act of 2005 includes federal loan guarantees and investment tax credits to aid potential industrial gasification projects. To date, however, the application process has been hampered by a lack of clarity regarding application requirements and insufficient guidance on selection criteria, Ferguson pointed out.
"It's imperative that implementation of the industrial gasification tax credits be more transparent and based more on the substantive merits of potential projects than we have seen so far," Ferguson said. "The primary objective should be to assure that these early projects be technically, financially and commercially solid projects with experienced and capable owner/operators."
Recent requests for clarification have been ignored, he said. "Time is running out for any serious applicant to submit a responsible project application in the face of untimely responses and unanswered questions."
Another concern, Ferguson told the senators, is that many projects that might apply for incentives may not be significant enough to impact the energy situation for domestic industries suffering from high natural gas prices. He said funding these small projects or projects with only indirect benefits would curtail any substantial progress on developing energy alternatives.
"The real difference for America now is to assure that the incentives support investment in commercial scale industrial gasification projects that are calculated to meet global competition," he said. "That's where American jobs are on the line.
"If the desire of this Congress continues to be one of providing help to the job-producing portion of the American economy and to keep jobs here in the U.S.," Ferguson said, "it is critical that you protect the funding for those sectors where it can do the most good: commercial, industrial projects."
Eastman built the nation's first commercial coal gasification facility in 1983 to produce raw materials for its Kingsport manufacturing facility. Ferguson told the committee that the company is now exploring new ways to further increase its exposure to coal and other advantaged domestic materials as raw material feedstocks.
But the real advantages for the gasification technology, Ferguson said, is in providing an alternative energy source for American industry.
Eastman manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products; is the world's largest producer of PET polymers for packaging; and is a major supplier of cellulose acetate fibers. Founded in 1920 and headquartered in Kingsport, Tenn., Eastman is a FORTUNE 500 company with 2005 sales of $7 billion and approximately 12,000 employees. For more information about Eastman and its products, visit www.eastman.com.
Contacts
Eastman Chemical Company
Nancy Ledford, 423-229-5264
www.eastman.com |
