Emissions Reductions Remain a Priority for Chemical Processing Industry Looking Ahead to 2008 Spending

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Researched by Industrial Info Resources (Sugar Land, Texas)--Chemical plant owners have spent billions in the last decade to decrease harmful emissions and pollutants from their plants. In recent years, the cost to reduce emissions has often robbed plant owners of dollars allocated growth or expansion projects. Although most plant owners in the Chemical Processing Industry (CPI) will continue to implement process changes or additions to achieve greater reductions in plant emissions, the level of spending identified by Industrial Info specifically for this purpose has somewhat leveled off. Almost a year ago, Industrial Info reported that spending for this type of project in the United States and Canada during 2007 would exceed $300 million based on projects identified as part of its North American Project Database.

An early look at spending for this same type of project during 2008 indicates that spending could easily reach the same level. More than $210 million from just 19 projects has already been identified for next year, and it is certain that many more projects will be reported for 2008 as budgets and agendas for next year become more defined. Most often, these projects are driven by compliance standards, and deadlines set by regional or state authorities and the Environmental Protection Agency (EPA). Emissions-reduction-related projects identified next year so far cover 11 states with most of the activity in Louisiana, Florida and Texas. These Gulf Coast states, specifically Texas and Louisiana, have been susceptible to some of the most stringent emissions-reduction rules imposed in the United States.

Two producers of sulfuric acid, E. I. du Pont de Nemours and Company Du Pont (NYSE:DD) (Wilmington, Delaware) and Rhodia Incorporated (Cranbury, New Jersey), will spend significantly next year to reduce sulfur dioxide and other emissions in a few specific plant sites. Du Pont will begin construction for nearly $90 million next year across two plant sites, Darrow, Louisiana, and Richmond, Virginia, to reduce emissions over a three-year period. Rhodia is working with Mustang Engineering LP (Houston, Texas) for the addition of new scrubbers in two of its sulfuric acid plants, one in Houston, Texas, and the other in Baton Rouge, Louisiana. Combined, these two projects could easily cost more than $20 million to complete with construction expected to begin for the Houston project in the second quarter of next year.

A great deal of the emissions-reduction projects identified for next year will be heater or boiler upgrades to reduce NOx emissions mixed with several planned thermal oxidizer additions. Emissions reductions don't always equal the installation of major equipment like scrubbers or baghouses. Often, the replacement of safety relief valves and similar devices can yield gains in reliability and safety while also reducing unplanned or costly environmental releases. The CPI has consistently given these issues a significant level of time and attention in an effort to remain not only competitive but also to be viewed as responsible by the consuming public.

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Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.