Eastman to Run 2 Coke-To-Gas Plants
Friday July 27, 12:46 pm ET
Eastman to Operate 2 Gulf Coast Coke Gasification Projects
biz.yahoo.com
KINGSPORT, Tenn. (AP) -- Eastman Chemical Co. on Friday said it plans to operate and invest in two new plants that will use petroleum coke instead of natural gas to produce industrial chemicals used in consumer products.
Eastman Chairman and Chief Executive Brian Ferguson said the Kingsport-based manufacturer of chemicals, fibers and plastics will be a developer, operator, investor and customer of a new $1.6 billion plant slated for Texas.
The company also plans to participate in Faustina Hydrogen Products LLC's project in Louisiana as operator, investor and customer.
"Our gasification technology is good for Eastman because it's an important part of our efforts to achieve a low cost position and add to the company's earnings growth," Ferguson said in a news release. "It's good for the environment because the technology can minimize our carbon footprint when compared to traditional manufacturing processes."
Based on $100 million in incentives that have been preliminarily approved by local officials in Beaumont, Texas, Eastman intends to locate its gasification project there, Ferguson said. That plant, which is expected to be online in 2011, will produce chemicals such as methanol, hydrogen and ammonia.
Ferguson said Eastman expects to own half of the project and expects to announce another investor soon.
Faustina plans to build a plant which will use petroleum coke, a byproduct from refineries, and high-sulfur coal as feedstocks to make anhydrous ammonia for agriculture, methanol, sulfur and industrial-grade carbon dioxide.
Eastman has provided development funding for the project, with the intent to take a 25 percent stake. Eastman will also provide operations and maintenance services and purchase methanol under a long-term contract.
The facility will be built in St. James Parish and is expected to be on line in 2010.
For its Texas project, Eastman says it has acquired options on several pieces of industrial property in Beaumont, including assets currently owned by Terra Industries that include methanol and ammonia production facilities.
Eastman has identified several key participants for the Beaumont project, including Air Products and Chemicals Inc., which has signed a letter of intent to buy hydrogen.
Air Products will also construct and operate new air separation units to produce over 7,000 tons per day of oxygen, essential to the gasifier operation.
Fluor Corp. will support the front-end engineering design effort and GE Energy has licensed its gasification technology for the project.
Eastman expects construction to be under way by early 2009. Up to 1,500 workers are expected to work on construction, and permanent employment is expected to be about 250. |
