OxyChem gets EPA approval for new cracker

By Gayle S. Putrich
Staff Reporter

Published: May 30, 2014 10:39 am ET
Updated: May 30, 2014 10:42 am ET

Related to this story

Topics Materials Public Policy United States Materials Suppliers
Companies & Associations Occidental Chemical Corp.

WASHINGTON — A joint venture between Occidental Chemical Corp. and a Mexico-based PVC and specialty chemicals firm has a green light from the U.S. Environmental Protection Agency to build an ethylene cracker in Ingleside, Texas.

EPA issued the final greenhouse gas Prevention of Significant Deterioration (PSD) construction permits on May 29.

 “OxyChem’s new plant will make the most of the company’s resources,” said EPA regional administrator Ron Curry in a news release. “Reusing feedstock and waste heat shows that being as efficient as possible is good for business and the environment.”

 The cracker will produce approximately 1.2 billion pounds per year of ethylene using cracking furnaces equipped with selective catalytic reduction technology to control emissions of nitrogen oxides, as part of a 50-50 venture with Mexican PVC and specialty chemicals maker Mexichem SAB de CV.  The cracker will be owned and operated by Los Angeles-based OxyChem.

 Nearly all of ethylene produced will be used on-site in the manufacture of vinyl chloride monomer (VCM). The project is expected to create 1,700 construction jobs and add 150 permanent jobs once operations begin in the first quarter of 2017.

 The cracker joint venture is the second involving a Mexican company to be announced in the past three years. In March 2010 Brazilian petrochemicals giant Braskem SA and Mexico's Grupo Idesa SA de CV formalized an agreement with Pemex Gas y Petroquímica Básica to build a $2.5 billion petrochemical complex, called Ethylene XXI, in Coatzacoalcos, which will include an ethylene cracker and three polymerization plants. Production at that site is scheduled to start in late 2015.

 Mexichem and Oxychem initially announced their joint venture plans in August 2012, spurred by increased shale gas development, though getting U.S. federal permission slowed the project some.

 As of 2011, EPA requires an air permit for any project that could significantly increase greenhouse gas emissions.

 “EPA believes states are best equipped to run GHG air permitting programs,” the agency said in its May 29 news release, though the agency rejected Texas’s initial clean air permitting program. The state says it is working to replace the federal implementation plan with its own program, which would eliminate the need for businesses to seek air permits from EPA.

 EPA says it has finalized 40 greenhouse gas permits in Texas, proposed an additional 10 permits and currently has over 22 additional permit applications under review and permit development in Texas.


Comments

OxyChem gets EPA approval for new cracker

By Gayle S. Putrich
Staff Reporter

Published: May 30, 2014 10:39 am ET
Updated: May 30, 2014 10:42 am ET

Post Your Comments


Back to story


More stories

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

Study suggests infants at lower risk from BPA exposure than expected

April 23, 2015 4:58 pm ET

A new study shows that newborn babies may have less risk from bisphenol A exposure than originally thought.    More

Image

Braskem and Odebrecht reconsidering West Virginia plastics project

April 23, 2015 2:54 pm ET

Brazilian firms Braskem and Odebrecht have confirmed that they are re-evaluating Project Ascent, the major plastics and petrochemicals project they...    More

Image

DuPont center in India gets LEED Certification

April 23, 2015 1:07 pm ET

DuPont Co.'s Knowledge Center in Hyderabad, India, was awarded LEED certification by the U.S. Green Building Council.    More

Image

SiVance opens new R&D lab

April 23, 2015 12:07 pm ET

Milliken & Co. unit SiVance LLC has opened a new research and development lab for silicone and silane technologies in Gainesville, Fla.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events