Permit Approval for Large Texas Cogen Pending

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Researched by Industrialinfo.com (Industrial Information Resources Incorporated; Houston, Texas). Texas Petrochemicals LP (Houston, Texas) is awaiting permit approval for a proposed 900 megawatt (MW) cogeneration project to be located at their chemical complex in Houston, Texas. Industrialinfo.com began tracking this estimated $400 million project in March of 2001 and current expectations are that the permitting process will be complete by September of this year.

Burns & McDonnell Engineering Company (Kansas City, Missouri) is providing engineering services for this new cogen unit that is planned to include a natural gas fired combined cycle configuration providing power and steam to the existing chemical plant with the remaining product being delivered to the local grid for merchant sale. The Houston site is Texas Petrochemicals' only chemical site producing Methyl tert-butyl ether (MTBE), high purity isobutylene, butylenes and other products.

"Spending for independently owned and operated cogeneration projects has slowed some in the chemical industry over the last year despite a positive acceptance of deregulation in Texas. One factor that will continue to support and influence spending will be the idling of very old or inefficient technology to become compliant with pending nitrogen oxide (NOx) reduction mandates," commented Trey Hamblet, Chemical Group Manager with Industrialinfo.com.

Many Texas Gulf coast producers will idle furnaces, cogen units, heaters and any piece of equipment that is not considered essential to reduce their NOx emissions and purchase steam from nearby reliable resources. Purchasing electricity and steam over the fence from companies such as Texas Petrochemicals will play a significant role in this trend and support private development of cogeneration projects.