High temperature cracking consumes fuel creating GHG & pollutants

From the Spring 2022 Newsletter of Concerned Ohio River Residents, WV – OH – PA

The Thai company, PTT Global Chemical America returned $20 million to the state of Ohio since they did not meet the deadline set forth in the agreement they made with the state years ago. They have not started construction and their air permit with Ohio EPA expired in Feb. 2022 as well. The state gave the company around $70 million total to prep the site in Dilles Bottom, OH to build the massive ethane cracker/plastics plant, and now that they had to return a good portion of it, many are questioning even more if the plant will ever get built.

“PTTGCA’s decision to let the air permit expire is the latest indicator that the project is extremely unlikely to move forward, and certainly will not be moving forward any time soon,” said Megan Hunter, senior attorney at the Chicago-based EarthJustice advocacy organization. “We are thankful that at least for now, the community is safe from the air pollution that would come from the facility.”

“Currently in the global economy, there is a massive overcapacity for the production of ethylene and polyethylene,” said Sean O’Leary, senior researcher at the Ohio River Valley Institute. “There’s been massive build-out along the Gulf Coast, and there’s also been major build-out in Asia, particularly in China. The competitive atmosphere is a pretty daunting one.”

What does this latest news mean for the Ohio Valley? No one is for certain, but we will keep you updated as we learn more about the situation. We should continue to push our elected officials to move on to some type of development that is sustainable and healthy, rather than extractive and dirty. Let’s come together in a positive way and create the future we want to have in the Ohio Valley.

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Lyondell Basell to shutter Houston oil refinery in exit from refining

From an Article by Erwin Seba, Reuters News Service, April 21, 2022

HOUSTON, April 21 (Reuters) – Chemical maker Lyondell Basell Industries will permanently close its Houston crude oil refinery by the end of 2023. The decision comes after two failed attempts to sell the plant and the closing of five U.S. refineries in the last two years. Refining until recently has been beset by high costs and low margins.

“After thoroughly analyzing our options, we have determined that exiting the refining business by the end of next year is the best strategic and financial path forward,” said Ken Lane, interim chief executive. The refinery, which makes gasoline, diesel and jet fuel, will remain in operation and the company will continue to seek potential transactions and/or alternatives for the roughly 700-acre site on the Houston Ship Channel.

The company earlier took a $264 million impairment charge as part of its decision to exit refining. In the past 10 years, Lyondell has twice mounted efforts to sell the 263,776 barrel-per-day refinery but failed to conclude a deal.

John Auers, executive vice president of Turner, Mason & Co, a Dallas-based energy consultancy, said Thursday’s announcement means “there will definitely be people knocking on the door” to look at the refinery. “The refinery could sell for a significant amount,” Auers said. “I certainly don’t expect it to close given this statement.”

Lyondell said the refinery, once the anchor of its supply chain as a regional chemical company, no longer fit with its global petrochemical production. “While this was a difficult decision, our exit of the refining business advances the company’s decarbonization goals, and the site’s prime location gives us more options for advancing our future strategic objectives, including circularity,” Lane said. Circularity refers to efforts by plastics manufacturers to increase spare finished plastics from landfills and return them to the supply chain for chemical plants.

Construction phase of Shell Cracker Plant in Monaca, PA, October 2019

Spokespersons for both PTT Global Chemical America and JobsOhio said this week the company remains committed to building the multi-billion dollar project in southeast Ohio’s Belmont County as PTTGCA continues searching for an investment partner.

The $20 million was paid to Bechtel Corp. in 2019 to complete site engineering and site preparation for a plant that would convert ethane – a byproduct of natural gas drilling from the Utica and Marcellus shale fields – into different types of polyethylene, raw materials for products that range from plastic bottles to vehicle parts.

The project has been optimistically viewed as a potential economic development boost for an Appalachian region still struggling from the loss of manufacturing jobs decades ago. The plant, its backers say, would create thousands of construction jobs and hundreds of permanent positions and spawn a manufacturing renaissance along the Ohio River.

A similar $6 billion petrochemical plant built by Shell Chemical Appalachia LLC 30 miles (50 kilometers) northwest of Pittsburgh is scheduled to begin operations this year. Shell announced its final investment decision in 2016. News that PTTGC would partner with a Japanese company to build a petrochemical plant in Belmont County first surfaced in 2015, spurring talk of a regional petrochemical hub to take advantage of abundant supplies of ethane.

In an interview with The Associated Press this week, Ohio Lt. Gov. Jon Husted expressed skepticism about whether the Ohio plant would be built. “They can’t find a partner because of market conditions,” Husted said. “They’re the ones who made the promise on what they’re going to do, and it’s up to them.”

Husted said the site, which is owned by PTTCGA, would be attractive to other developers. “There’s a lot of options for other end users,” Husted said. “The last thing I’m going to do is create a false hope. People in Appalachia have been promised a lot of things that businesses never delivered.”

PTTGCA spokesperson Dan Williamson said the company has invested $300 million in the project thus far and that company officials are committed to building the plant. He said there is no deadline for a decision on building it. “If the company wasn’t still hopeful of this happening, they would not continue to invest in it,” Williamson said.

JobsOhio spokesperson Matt Englehart blamed the coronavirus pandemic for the delay in an investment decision that resulted in PTTGCA paying back the $20 million. A U.S. subsidiary of South Korea’s Daelim Industrial Co. withdrew as PTTGCA’s partner in July 2020.

JobsOhio, which is funded with profits from Ohio liquor sales, has provided an additional $50 million in grants and loans for developing the site where a FirstEnergy Corp. coal-burning power plant once stood.

“PTTGCA remains committed to the project, and JobsOhio and its partners continue to work closely with PTTGCA to bring the project to a positive final investment decision,” Englehart said in a statement, adding that PTTGCA is “actively pursuing investors.”

PTTGCA is “in the process” of resubmitting its expired air permit to the Ohio Environmental Protection Agency, Williamson said. The permit will reflect PTT Global Chemical’s commitment to reducing global emissions 20% by 2030 and net zero emissions by 2050, he added.

The Ohio EPA recently renewed the company’s wastewater discharge permit.

Working in the company’s favor is that prices for polyethylene and other raw plastics have rebounded since a steep drop in 2020. Analysts say global demand for plastic products will continue to rise this decade.

Dilles Bottom is in a deep valley with many residential areas nearby

From an Article of WTOV News 9, Steubenville, OH, November 10, 2018

The Ohio EPA is asking for input regarding the draft air permit for the potential construction of a billion-dollar ethane cracker plant in Belmont County.

The cracker plant would be built in Dilles Bottom. (This is in the Ohio River valley directly across the river from Moundsville in Marshall County, West Virginia.)

If approved, the permit would allow construction of the PTTGCA Petrochemical Complex that would use six ethane cracking furnaces and manufacture ethylene and polyethylene.

The EPA says different gases and pollutants could be emitted, however, its goal is to ensure air quality, and the maximum air emissions would be limited.

There will be a public hearing hosted by the Ohio EPA at 6 p.m. on November 27 at Shadyside High School to discuss the air permit.

The permit application may be viewed online here by entering permit number P0124972 or at the Ohio EPA Southeast District Office, 2195 Front St., Logan. See the PDF version of the draft air permit here. Call for an appointment: (740) 380-5245.

Ohio EPA values public input. Comments will be accepted both verbally and in writing at the hearing and may be submitted through December 11, 2018.

Written comments may be sent by mail to Kimbra Reinbold, Ohio EPA, DAPC Southeast District Office, 2195 East Front Street, Logan, Ohio, 43138 or emailed to kimbra.reinbold@epa.ohio.gov.

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PTTGCA Petrochemical Plant Complex — Permit Description

Initial installation permit for a world-scale petrochemical complex composed of ethylene and ethylene-based derivative plants to manufacture high-density polyethylene (HDPE) and linear low-density polyethylene/HDPE (LLDPE/HDPE) with the following design capacities: Ethylene Plant: 1,500 KT/year; HDPE Units: two (2) trains of 350 KT/year for each train; and LLDPE/HDPE Units: two (2) trains of 450 KT/year for each train. The petrochemical complex will also involve onsite railcar and truck loading, supporting utilities, infrastructure, storage tanks, logistics facilities, and facilities to produce and/or provide required natural gas, water, air, nitrogen, steam, and electricity to support the operation of process units.