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Mitsubishi’s planned $1.3bn chemical plant in Louisiana doesn’t work economically or environmentally, energy group says

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Mitsubishi’s planned .3bn chemical plant in Louisiana doesn’t work economically or environmentally, energy group says


 $1.3 billion chemical production facility to be built in Louisiana by Japanese conglomerate Mitsubishi is economically questionable and unnecessarily increases greenhouse gas emissions, according to an energy think tank report released Monday.

The proposed Mitsubishi plant is “the wrong project, at the wrong place and time, with the wrong financial scenario,” said the report from the Institute of Energy Economics and Financial Analysis, or IEEFA, an Ohio-based nonprofit.

Mitsubishi Chemical Group would be capable of annually producing 350,000 tons of methyl methacrylate, or MMA, a chemical component found in cement, adhesives, textiles and plastics.

The facility would also be among the state’s top 50 greenhouse gas emitters, according to data from the Environmental Protection Agency. And it is being constructed in Ascension Parish, along a stretch of the Mississippi River between Baton Rouge and New Orleans known as “ cancer alley ” for its heavy industrial pollution.

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The facility would release more than 780,000 tons of carbon dioxide annually even though an alternative production process less reliant on fossil fuels exists, the IEEFA report notes.

Mitsubishi stated in 2022 that its proposed facility in Louisiana “achieves the lowest possible carbon footprint for MMA production.” The proposed facility’s natural gas-based production process is also intended to help the industry shift away from the dominant method of cyanide-based production.

But IEEFA said Mitsubishi does not need to choose between cyanide or natural gas for the chemical component’s production since there is another option: An alternative biofuel-based technology has become viable and is already being adopted elsewhere by Mitsubishi and its competitors.

The market conditions and economic viability of the facility have also worsened, IEEFA reports. Compared to when Mitsubishi began planning this facility in 2014, construction costs have increased, prices for the chemical component have flatlined and growth forecasts have reduced.

The global market for methyl methacrylate will be oversaturated by the time the plant is expected to begin operating in 2028, said Tom Sanzillo, director of financial analysis for IEEFA and former deputy comptroller for New York.

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The analysis estimates that U.S.-based producers will increase the amount of methyl methacrylate they are capable of producing to more than 1.2 million tons, while only needing to produce two-thirds of that amount.

“The U.S. market is not expected to expand beyond its historical norms,” the report states.

IEEFA notes that the Mitsubishi plant would be unlikely to find an outlet for its methyl methacrylate in China, the largest consumer and producer of the chemical component. Earlier this year, Mitsubishi shut down a methyl methacrylate plant in Hiroshima, citing oversupply from China.

Both Europe and the Middle East also face market uncertainties given the ongoing wars in Ukraine and Gaza, according to the report.

Mitsubishi Chemical Group representative Eri Nishumata declined an interview request on behalf of the company, stating that “the final investment decision has not yet been made.” Mitsubishi did not respond to a request for comment on IEEFA’s analysis.

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Mitsubishi received an estimated tax exemption from the state of Louisiana for $17 million for its first year of operation, but multiple delays in beginning construction have pushed the start date back. Sanzillo said he believes the company is waiting to see if the market conditions improve before proceeding.

“The company is now using the government as a speculative tool,” he said. “And you’re not supposed to do that with subsidies, you’re supposed to go forward with them.”

The Louisiana Department of Environmental Quality stated in a February public notice that the Mitsubishi plant is not expected to have “a significant adverse impact on soil, vegetation, visibility or air quality in the area of the facility.”

Environmental groups point out that the hundreds of tons of pollutants the facility would emit are linked to harmful health impacts, including respiratory infection, lung cancer and strokes. A February public hearing for the facility’s pending air permit saw vocal opposition from some community members, while others praised the expected jobs and hope of economic benefits.

The Louisiana Department of Environmental Quality and Ascension Parish authorities could not be reached for comment.

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While the Mitsubishi plant plans to directly employ 125 people, Ascension Parish resident Ashley Gaignard is skeptical that the facility will help her community or the environment.

“Bringing more industries into the community is a false solution,” said Gaignard, 47, who founded the environmental justice nonprofit Rural Roots. “Industry is the wheel that keeps Louisiana burning. And that’s the real truth about it.”

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Louisiana

Louisiana initial jobless claims up nearly 16% from the previous week

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Louisiana’s initial unemployment insurance claims increased for the week ending June 7, according to data released by the Louisiana Workforce Commission.

The state reported 2,471 initial claims, up from 2,131 the previous week—a 15.9% increase. Compared to the same period last year, when 2,193 initial claims were filed, the number reflects a 12.7% year-over-year rise.

Continued unemployment insurance claims, which reflect the number of individuals still receiving benefits, rose to 11,212 for the week, up from 10,569 the prior week. However, the figure remains 13.9% lower than the 13,030 continued claims reported during the same week in 2024.

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Louisiana teachers will get $2,250 permanent pay raises under new law, if voters approve

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Louisiana teachers will get ,250 permanent pay raises under new law, if voters approve


Louisiana voters will return to the polls to decide whether to approve a constitutional amendment that would permanently raise teacher salaries by $2,250 and support staff salaries by $1,125 under a pair of bills that received final passage in the Legislature on Thursday.

House Bill 466 by Rep. Josh Carlson, R-Lafayette, and HB 473 by Rep. Julie Emerson, R-Carencro, will ask voters to approve eliminating multiple constitutionally protected education trust funds in favor of giving raises to Louisiana teachers, who make roughly $5,000 less on average than educators in other southern states and about $15,000 less than the national average, according to data from the Southern Regional Education Board. If voters approve the amendment, teachers will receive the raises in the 2026-27 school year.

The raises are slightly higher than the $2,000 and $1,000 pay bumps the bills originally proposed. The Louisiana House of Representatives unanimously approved the additional increase Thursday. Both pieces of legislation now head to the governor’s desk for his signature.

“I brought this bill on behalf of our teachers,” Carlson said in a statement. “We wanted to ensure that we did all we could to provide a permanent pay raise.” 

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The bills, which repackage part of a constitutional amendment championed by Gov. Jeff Landry that voters shot down earlier this year, are the state’s latest effort to increase educators’ compensation. Lawmakers failed several times in recent years to increase their pay, opting instead for one-time stipends three years in a row. If signed into law, the bills will turn the stipend amount teachers currently receive into a slightly larger permanent pay increase.

Emerson’s bill eliminates three trust funds that funnel millions annually toward state K-12 education initiatives, including early childhood education, student testing help and efforts to improve struggling schools. Instead, the trust funds would be used to pay off longstanding debts related to Louisiana’s teacher retirement system, which is expected to save school districts $2 billion in interest payments. Carlson’s bill mandates that school systems use the savings to give teachers raises.

The bill also requires the state to step in to subsidize the full cost of the raises for districts that do not realize enough savings to do so on their own. It will also cover the estimated $16.7 million to give raises to teachers and staff at charter schools that don’t pay into the retirement system.

The state will have to spend around $250,000 to fund the raises in the roughly seven districts that are expected to come up short in their savings, according to cost estimates for Carlson’s bill. Other districts are expected to have nearly $36 million left over after providing the raises, which the legislation says can be put toward a limited number of uses, including giving teachers additional pay bumps.

If the governor signs the bills into law, Louisiana voters will then need to approve changing the state constitution to eliminate the trust funds. Lawmakers say that vote will likely not happen until April 2026. 

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The state’s largest teachers union supports the raises but has expressed concerns about funding them through debt-payment savings.

Louisiana Federation of Teachers President Larry Carter told lawmakers last month that it would be better to include the pay increases in the state’s school-funding formula to prevent the money from being funneled toward different uses down the road.

Educators “cannot rely on good intentions alone,” he said, adding that “we want to get some guarantees.”



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CVS tells customers it will be forced to close its doors in Louisiana because of HB 358, lawmakers call bluff

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CVS tells customers it will be forced to close its doors in Louisiana because of HB 358, lawmakers call bluff


BATON ROUGE, La. (WAFB) – On June 11, many CVS customers woke up to a text from the pharmacy chain that said it would have to close its locations in Louisiana because of HB 358, which passed both the House and Senate. That bill would force CVS Health to stop operating CVS Caremark, alongside other pharmacies that own Pharmaceutical Benefit Managers (PBMs) in Louisiana.

On June 11, many CVS customers woke up to a text from the pharmacy chain that said it would have to close its locations in Louisiana because of HB 358; which passed both the House and Senate.(WAFB)

“If you choose to be a PBM, you can still be a PBM but you cannot be a PBM and a pharmacy,” Rep. Dustin Miller proclaimed on the House floor. His bill would do just that, separating what he says is a conflict of interest in the pharmaceutical industry.

A PBM is essentially a middleman between pharmacies, insurance companies, and drug manufacturers that works to set drug prices. PBMs make their profits by spread pricing, or through the difference between what they bill insurance companies and the rebate to the pharmacy.

Oftentimes, these PBMs are owned by the pharmacies that they work with, even though they work across the industry. Lawmakers allege this drives business away from independent pharmacies and strangles small business.

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“They set the rates and the reimbursement for the pharmacies; we are just telling them if that is your core responsibility, you can keep that as your core responsibility,” Miller said. “We don’t want you to also go open a pharmacy and steer people to you and compete against other pharmacies.”

On June 11, many CVS customers woke up to a text from the pharmacy chain that said it would...
On June 11, many CVS customers woke up to a text from the pharmacy chain that said it would have to close its locations in Louisiana because of HB 358; which passed both the House and Senate.(WAFB)

Many House lawmakers took to the floor to call out CVS for what they said are scare tactics. The text and emails claimed sent by CVS claimed lawmakers were trying to get CVS to shut down its businesses.

“No, we’re not you liars,” Baton Rouge Republican Rep. Dixon McMakin said. “Quit being liars, quit using scare tactics.”

But Rep. Edmond Jordan said everyone needs to take a chill pill.

“Independent pharmacies aren’t going to close tomorrow, in fact, they are doing better than they have in several years,” Jordan said. “If CVS decides to leave, hopefully, we have people there to make up that difference.”

House Bill 358 now heads to the governor’s desk for final signature. Governor Landry has said online that he supports the new regulations.

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