April 19, 2021 at 7:00 a.m. EDT. NEW YORK (ICIS)-FG LA LLC, a member of the Formosa Plastics Group, has deferred major construction at its Sunshine petrochemicals project in Louisiana, a spokesperson said on Monday. New Bloom is an online magazine covering activism and youth politics in Taiwan and the Asia Pacific, founded in Taiwan in 2014 in the wake of the Sunflower Movement. The Fifth District of Louisianas St. James Parish was never exactly a bustling community but it was still a community. FPCUSA is seeking to build a facility with around 3 million Mt ethylene capacity (equivalent to what they produce at their existing US and Taiwan locations) in St. James Parish, LA. Copyright 2023 LexisNexis Risk Solutions, ICIS Webinar: The global gas market and its growing influence on US natural gas. Woodrows grocery closed down. Over 169 illegal dumping sites, including more than 8,000 tons of mercury waste, have been linked to Formosa Plastics in Taiwan. FG LA LLC (FG) is a member of Formosa Plastics Group (Formosa), a Taiwanese-based conglomerate founded in 1954. The planned $9.4bn petrochemical facility, owned by Formosa Plastics, would roughly double toxic emissions in its local area and, according to environmentalists, release up to 13m tonnes of. Washington is putting another environmental justice hurdle in front of a proposed Formosa Plastics resin complex in Louisiana, saying it will investigate whether air pollution from the facility will disproportionately harm nearby communities. Promising fairness and transparency, the agency officials also met with leading elected officials in St. James Parish, including the parish president, sheriff, assessor and school superintendent. According to environmentalists, the $9.4bn facility could release up to 13m tonnes of greenhouse gases a year. The company has not confirmed the larger amount but has acknowledged rising construction costs. Among our other endeavors, we currently run a community space in Wanhua, Taipei. Dive Brief: Taiwan-based Formosa Petrochemical Corp. announced it will build a $9.4 billion manufacturing facility midway between New Orleans and Baton Rouge on a 2,400-acre site in St. James . In particular, the ruling cited inaccurate information provided by Formosa Plastics for the original assessment of the environmental impact from the plant. This is not unlike how Formosa Plastics has behaved when legal rulings were made in its development projects in Taiwan or elsewhere, often seeking interpretations of the law that would allow it to keep operating or to continue construction. construction will proceed dependent on several permits needed to beginconstruction of Even the dead have played a role in the dispute. Buena Vista Baptist Church now worships a couple thousand feet from a methanol plant and asphalt depot. Environmental groups filed a lawsuit claiming the environmental study was inadequate, and the Corps acknowledged errors. Chasity White, a phlebotomist who works in Baton Rouge, hopes such victories can be repeated. When such projects come under fire, Formosa has sought to continue operating, as observed in its attempt to refuse shutting down a Changhua power plant that had come under fire for pollution. The reports have saved our internal team a lot of time and effort when analysing pricing trends., Sante Serrecchia, Administrative & Purchasing Manager, Ondaplast. It has also drawn attention from out-of-state political leaders and the United Nations. Heavy manufacturing moved in. This time, Biden might come to the rescue. 2022 Institute for Energy Economics & Financial Analysis. During Black History Month this year, a few dozen members gave speeches, played music and danced just outside the fence. planned to be built in two phases with an wideningHighway 3127 expansion, utility "The company still has not received official notification from the Corps regarding the additional review or its components, nor did Acting Assistant Secretary Jaime Pinkham seek to meet with FG (last) week during his visit to the area, so we cannot comment further," Parks wrote. estimated total investment of around $9.4bn. Though permits for the plant came from the US Army Corps of Engineers, the Corps now intends to carry out a more thorough form of assessment. The term Cancer Alley refers to a 85-mile stretch of the Mississippi River between New Orleans and Baton Rouge with over 150 fossil fuel and petrochemical facilities. In October 2020, S&P downgraded Formosa in part due to the cash drain on the company from its Louisiana project. Gain insight on polyethylene (PE) and polypropylene (PP) global supply glut in 2023 by this ICIS whitepaper. But the plant has triggered lawsuits and regular protests from a dedicated group of local residents and environmentalists. I want people to have jobs. Opponents relentlessly try to misrepresent facts and blame the company for just about anything.. Key financial decisions affecting the proposed Formosa complex have deteriorated over the past year, said Sanzillo. Before long Lavigne left her job teaching students with special needs and founded RISE St. James, a grass-roots, faith-based organization devoted to opposing the plant. Against this background, many parish residents feared they had no prayer of stopping a $9.4 billion plastics complex that the Formosa Plastics Group proposed in the district on strips of flat sugar cane fields. Fluor B.V. Taurusavenue 155 2132 LS Hoofddorp The Netherlands. We are listening to local concerns and developing programs that meet real community needs. Do you have some thoughts you'd like to share with our readers? spokesperson noted. Over the past dozen years, the United States has seen a surge of cheap shale gas, one of the principal building blocks for plastics, and Taiwan-based Formosa, one of the worlds largest chemical companies, believes its project can be profitable. This disastrous project is an affront to environmental justice and contrary to your goals to reduce pollution in frontline communities, they wrote in a March 17 letter. Project Manager -UOIL, Sunshine Project, Louisiana, Formosa Group 2017-2021 FEL-1, FEL-2, FEL-3, and Early Works- Leading development and delivery of Utilities, Offsite, Infrastructure, and. project site in St James Parish, the Just after the November election, the U.S. Army Corps of Engineers withdrew the permit it had granted under the Clean Water Act for excavation and the filling in of wetlands. Located just downriver from the Sunshine Bridge, the 2,400-acre site along the west bank of the Mississippi River, is slated to . Then the local landmarks began to disappear. the plant has been termed a significant example of environmental racism in the US. Email your letter to Editor at [emailprotected]. Sharon Lavigne, who lives only two miles from the site, remembers the day her daughter called with the news about Formosa. Job Description: Fluor joint venture with Walsh Construction Company is seeking candidates for the CTA R&P project. Formosa anticipates hiring for about 8,000 temporary construction jobs and then hiring 1,200 permanent workers after that. Opponents said it would double local air emissions and be a large emitter of ethylene oxide and has been the subject of lawsuits and challenges by some local groups. She has lived in the Fifth District her entire life, and her home is just across the street from one of the levees that helps hold back the Mississippi. The widespread impacts of a global pandemic, Click here to view the ICIS Coronavirus, FG LALLC (FG)isa memberof Formosa Plastics Group(Formosa), a Taiwanese-basedconglomeratefounded in 1954. She wonders whether the petrochemical facilities, one of them within walking distance, are to blame for her fathers cancer. Louisiana officials gave approval to the Sunshine Project in January 2020, saying the large project would generate 1,200 direct jobs and $33 million a year in local taxes. But theyre not jobs when they wont last, when we wont be able to live.. How Taipei Became the Home of Live Comedy During the Pandemic, Never Mind Chinas Drills, Quincy Institute Article Views America as Sole Agent of Rising Tensions. restrictions it has placed on international The project, which would manufacture several types of plastic resins with ethane as its feedstock, may suffer from volatile polyethylene prices. The high school football field was overrun by subsidiaries of a Chinese company and the Koch familys corporate empire, which teamed up to build a huge petrochemical plant. Pellentesque ornare sem lacinia quam venenatis vestibulum. The EPA investigation comes after the U.S. Army Corps of Engineers said last year it would put the Formosa project through an additional review over concerns, "particularly those with environmental justice implications.". About 61 percent of children live in poverty, and median family income is only 60 percent of the state average. The total impact of 800,000 tonne/year ethylene glycol (EG) plant, The cleaners and post office shut their doors for lack of business. The second phase of the project would include a This air modeling map for a Formosa Plastics complex proposed in the Welcome area of St. James Parish shows carcinogenic ethylene oxide emissions would exceed a new federal guideline of 0.2 micrograms per meters cubed (inside red line) but not fall on populated areas. Abhishek Sinhais a petrochemicals analyst, US. It's only the fourth such review the New Orleans district of the Corps has conducted since 2008. By Steven Mufson. Enter your email address to follow New Bloom Magazine and receive notifications of new posts by email. Moving forward with Formosa Sunshine project . Connecting markets and data, enabling customers to make smarter business decisions. Detroit MI 48207-2997, Most Interesting Social Media Accounts in Plastics, Women Breaking the Mold Networking Forum Library, G7 commits to ending plastics pollution by 2040, Ipex owner Aliaxis offers $2B to buy Uponor, Data shows plastics' chronic labor shortage abating, Berry expanding stretch film production in Tennessee, Kickstart: Honoring the best companies, according to employees. Formosa Petrochemical Corp's USD 10 billion single-use plastics Sunshine Project facility in Louisiana had its licence suspended by the U.S. Army Corps of Engineers on 4 November 2020. Formosa Plastics has continued to cite the original assessment to back its claims, however, also touting the fact that the plant would create 1,200 jobs with an average salary of 84,500 USD. In a short memo, Jaime Pinkham, the acting assistant secretary for the Army for civil works, offered little detail on the parameters of the new review, but said it would thoroughly review areas of concern, particularly those with environmental justice implications. St. James Parish President Pete Dufresne said he told the Corps he supports the project. Augustaanlage 67 68165 Mannheim Germany. The network also found cancer risk increased with proximity to Denkas plant. A 2009 report released by Texas A&M indicated genetic damage in cattle as far as six miles away from Formosas chemical plant in Point Comfort, where workers have also dealt with concerns of brain cancer and cases of neurological damage for decades. The decision was hailed by environmental groups, who said it would send the large facility, called the Sunshine Project, "back to the drawing board" by revoking permits that Formosa received from . Market fundamentals suggest that the oversupply will push prices down, which makes going forward with the project unlikely.. It has attracted substantial local, national and international media attention, including sustained coverage by the Guardian, leading to civil rights leaders including Rev William Barber, placing it at the centre of national environmental justice campaigns. They are on the wrong side of history, not us.". Formosa Plastics longer history of illegal dumping is also evidenced in its dumping of 3,000 tons of mercury waste in Sihanoukville, Cambodia in 1999 through bribery of government officials, an action which led to the deaths of three villagers. Formosa Petrochemical has been trying to build the $9.4 billion petrochemical complex on more than 2,000 acres of land along the Mississippi River for years. nations third-biggest producer of natural gas. Martin, the Corps regulatory chief, provided his explanation of the coming review process during a meeting with the community groups Rise St. James and Louisiana Bucket Brigade at the Freetown Street community hall in Welcome. Most of the regions plants are close to historically Black communities like Welcome and Convent in St. James Parish, where some people trace their lineage to enslaved ancestors, and the Biden administrations support of environmental justice has focused new attention on the health and environmental impact of the proposed complex. I start new assignment to work for Petrochemical complex in Process area. She is concerned for her teenage son. Dufresne took office in January 2020, well into the fight over Formosa and after an earlier Parish Council majority had granted the project its blessing. Cancer Alleyenvironmental damage caused by Taiwanese companiesFormosa GroupFormosa PlasticsSunshine ProjectTaiwanese companies abroad. The subscription platform provides access to our full range of breaking news and analysisContact us now to find out more. Many state and local leaders have praised its potential economic benefits: It is expected to create 1,200 permanent jobs, thousands more temporary construction jobs and generate tens of millions of dollars in tax revenue. the fish die-offs represented a 10.6 billion USD investment. The U.S. Army Corps of Engineers had already approved permits for the Sunshine Project, a $9.4 billion plastics plant that Formosa has been trying to build for three years, but it rescinded. In Louisiana, Formosa Plastics Group plans a $9.4 billion manufacturing complex in a largely Black community. On Wednesday, a spokeswoman for the Sunshine Project, Janile Parks, said the short memo from the Army Corps of Engineers provides little detail on the agencys new evaluation. The label on a bottle of hexane warns the chemical may be fatal if swallowed and enters airways and may cause damage to organs through prolonged or repeated exposure. The final line: Avoid release to the environment., I wondered, how does this bottle compare to the volume of hexane that Formosa would release into the environment? Terrell said. View upcoming events and training courses produced by ICIS for the industry. The east bank community of Union would be very close, however, to the line where air concentrations start to surpass the federal guideline. The independent report "affirmed that all is in good standing for the project," said Janile Parks, FG LA director of community and government relations. I am done FEED package for Formosa Sunshine Project in Fluor for U&O area. FG is listening to the community and is committed to supporting initiatives that meet local needs in St. James Parish. I was hoping they wouldnt agree and would walk away. Instead, at the last moment, the company agreed. Thompson/AP/Shutterstock. Plastics News would love to hear from you. They also left notes: We have delivered this package of nurdles as a reminder Louisiana does not need any more pollution, plastics or otherwise.. Formosa would benefit from cheap gas and an already highly developed infrastructure, including rail and electric transmission lines, pipelines and ports. Formosa has over 100,000 employees worldwide with locations in the USA, Taiwan, China, Vietnam, Philippines and Indonesia. These two Democrats, who are not from our state, are not basing this on science, he said in a statement. An incident in recent memory would be Taiwanese academic Tsuang Ben-Jei of National Chung Hsing University being sued by Formosa Plastics for accusing the plant of causing increased cancer risk in the vicinity of a hydrocarbon-processing facility in Mailiao, Taiwan. Those critics welcomed the Corps' increased scrutiny. Likewise, the site of the plant would have been on an 18-century slave graveyard, and it would be located next to an elementary school. Rolfes and another member of the Louisiana Bucket Brigade left a box of the stuff outside the homes of four chemical industry lobbyists there. ", "This is the first time a government official has taken the time to see our humanity," Lavigne said. Formosa or Formosa-owned companies have caused a number of environmental disasters internationally. He was Democracy and Human Rights Service Fellow at the Taiwan Foundation for Democracy from 2017 to 2018. Although environmental activists who have been protesting the Sunshine Project for years have hailed this as a victory, Formosa Plastics has stated that it is exploring options to continue the project. 175 organizations today called on 30 leading banks and financiers not to fund the construction of Formosa Plastics' $12 billion "Sunshine Project" petrochemical plant in St. James, Louisiana.. Signatories to the letter from RISE St. James include residents and community groups, major U.S. civil society organizations, and international groups concerned about toxic air pollution caused by the . She said the company has been in contact with the Corps over the environmental impact statement "in the interest of a fair and transparent process.". This article was published more than1 year ago. Sign up for the Climate Coach newsletter, in your inbox every Tuesday and Thursday. Environmental groups are cheering that scrutiny, arguing it could provide a more realistic assessment of the environmental damage the plant would do to an area they say already bears a heavy burden of pollution. Our opponents seek fear and confusion, one said. Dubbed the "Sunshine Project" and located just downriver of the Sunshine Bridge, the plant would make pellets and other raw materials that are used to make everyday plastic products. Formosa Plastics said in an email the Sunshine Project was the responsibility of Formosa Petrochemical Corp (6505.TW), in which the company holds a 29% stake, and referred questions to. Th Sunshine Project being considered for development by Formosa Plastics is increasingly threatened by rising construction prices, more intense regulatory scrutiny, increased community opposition, and withering credit agency support, IEEFA found in its update of a 2021 report. Access a host of content brought to you by ICIS Experts from around the world. Fluor is building a better future by applying world-class expertise to solve clients greatest challenges. Our outreach focuses on four key pillars of need expressed by the community. As Formosa Plastics has moved gradually toward construction of a $9.4 billion chemical complex in northwestern St. James Parish, the No Formosa signs that once protested the plants arrival along River Road have been replaced with No Trespassing signs from Formosa affiliate FG LA LLC, which is building the complex. Thumbnail image shows PE, one of the March 24, 2022 (IEEFA)Four key conditions have changed to make the construction of a massive Louisiana petrochemical plant even less viable over the past year, according to a study by the Institute for Energy Economics and Financial Analysis. John Bel Edwards remains committed to the Sunshine Project, touting it as key to a brighter economic future for Louisiana, and Formosa has tried to associate its proposed facility with better lives. We seek to put local voices in touch with international discourse, beginning with Taiwan. A new, more rigorous review of the environmental impact of Formosa Group's $9.4 billion chemical manufacturing complex, dubbed Sunshine Project, planned for St. James Parish, Louisiana, could take more than two years. Formosa has over 100,000 employees worldwide with locations in the USA, Taiwan, China, Vietnam, Philippines and Indonesia. According to Anne Rolfes of the Louisiana Bucket Brigade, an environmental activism group based in New Orleans, the result was a land-use plan that concentrates all industry in the two highest majority Black districts in the parish. Census data shows the Fifth District is 91 percent Black. The IEEFA analysis finds that a 10 percent increase in the price of ethane used as feedstock, coupled with a 10 percent decline in ethylene prices, would reduce Formosa margins by half. It included stops in St. James and St. John the Baptist parishes. The plant will make the plastic building blocks found in everyday products that help make our lives safer, healthier, cleaner and more efficient, Janile Parks, Formosa director of community and government relations, said in an email. A New York native and Taiwanese-American, he has an MA in East Asian Languages and Cultures from Columbia University and graduated from New York University with majors in History, East Asian Studies, and English Literature. A LOUISIANA JUDGE struck down air permits for Taiwan-owned Formosa Plastics' 9 billion USD "Sunshine Project" earlier this month. Formosa Plastics has at times filed lawsuits against critics, hoping to silence them. "It always was, always has been and always will be, but, with that being said, we have to be realistic with our approach to this project. Thats one of several fronts it is fighting. The decision deals a significant blow to the proposed multi-billion dollar plastics manufacturing site that would be located in the Gulf Coast region, potentially setting the project's . Our outreach focuses on four key pillars of need expressed by the community. We are listening to local concerns and developing programs that meet real community needs. "We will forever remember Mr. Pinkham for taking this initial step. Now the world is watching this important victory for environmental justice.. She has analyzed the Federal Energy Regulatory Commissions policies related to interstate pipeline approval. Understand market developments and complex data and what they mean to you. Please select at least one newsletter to subscribe. Source: Elaine factors, said Parks. Re/writing COVID-19 in China: Solidarity as Metonym for Historical Truth? Industrial plants and flooded . 2017-2023 FG LA LLCAll rights reserved. He recently commissioned a study by consultant Atlas Environmental that found the Corps has already followed the rules on state and federal permitting. Enter your email address to subscribe to New Bloom and receive notifications of new posts by email. This fits with Formosas pattern of behavior in Taiwan as well, seeing as Formosa Plastics has sought to skirt environmental impact assessments in order to continue operating facilities in Taiwan. The No. For now, the Formosa project is on hold. I said, 'I cannot lead my community just based on gut feelings. The yellow line marks a distance of two miles from Formosa's site. Fluor Daniel announced today it will relocate its Chicago offices to 120 South Riverside Plaza, Suite 2000, Chicago, effective January 22. The issue of toxic air pollution also became a critical topic during a recent congressional election to replace the regions former US congressman Cedric Richmond, who joined the Biden administration. Supply and Demand Database. a 600,000 tonne/year propane dehydrogenation Formosa's major businesses are oil refining, petrochemicals, plastics, fibers, textiles . A portion of the project site sits atop ancestral burial grounds, now a grassy field surrounded by a chain-link fence. The University Network for Human Rights found residents of a census tract in neighboring St. John the Baptist Parish face the highest cancer risk in the nation, most likely the result of chloroprene emissions from a facility owned by Japans Denka Co. Chloroprene is used to make synthetic rubber. View projects by client market: Energy Solutions Urban Solutions Mission Solutions Energy Solutions LNG Canada Export Facility Kitimat, British Columbia, Canada The 2,400 acres that Formosa owns in St. James Parish were rezoned residential/industrial in 2014 by the planning commission and parish council. IEEFAs mission is to accelerate the transition to a diverse, sustainable and profitable energy economy. The U.S. Environmental Protection Agency said the new 0.2 guideline matches its minimum acceptable lifetime cancer risk level for air pollution, though state regulators dispute it. Suzanne Mattei is an attorney with over 30 years of experience in public interest law and policy. Tom Sanzillois Director of Financial Analysis for IEEFA. In the letters this month, EPA's External Civil Rights Compliance Office said that opening its investigation does not mean it has decided the merits of the case. Fluor Nordic, filial af Fluor Project Services B.V., Holland (Nordic Technology Hub) Gteborg Plads 1, 6th Floor 2150 Nordhaven Copenhagen CVR 36705256 Denmark. The St. James sugar co-op ground to a halt. Inherent, in the courts opinion, in a robust environmental justice analysis is the recognition that environmental racism exists, and that environmental racism operates through the states institutions, she wrote. tonne/year HDPE plant, a 400,000 tonne/year NEW YORK (ICIS)FG LA LLC, a member of the I have to have scientific data and something concrete to make my decisions off of, and everything in that report says Formosa was legit.'". Some people think I voted for Formosa because I was for them, Cooper said Wednesday. The incident is thought to be the largest ecological disaster in Vietnamese history. Sharon Lavigne, director of Rise St James, protests a Formosa Plastics facility in St James Parish on 9 July 2019. of the cancer causing chemical ethylene oxide, when signing a series of climate and environmental justice orders. Part of the controversy stems from the Louisiana Tumor Registry. On April 8, in a symbolic gesture, the New Orleans City Council voted unanimously to declare its opposition. Fluor is providing FEED for Formosa sunshine facility are an ethane cracker unit and propane dehydrogenation units with an annual capacity of 1.2 million metric tons and 600,000 metric tons. Ducks Grocery sold out to a rail car and crude-oil storage facility. Further analysis and a public comment period must take place. Perspectives from Design with Jeffrey Hou, Thai Activist Faces Arrest over Defying Draft, Visa Denials for Pro-Democracy District Councilors May Reflect Hardening Views of Hongkongers in Taiwan. 5 min read. Louisiana is the nations third-biggest producer of natural gas, and its lower stretch of the Mississippi already has more than 200 chemical plants and refineries. 6 Naphtha Cracker in Mailiao, which has also been linked to high rates of cancer among residents living nearby, and was built in collusion with the KMT developmentalist state, is also a Formosa project. Who is the tech consultant accused of killing Cash App founder Bob Lee? The US government has placed further delays on a proposed multibillion dollar plastics plant in south Louisiana, marking a major victory for environmental activists and members of the majority Black community who have campaigned for years against construction. At the time, S&P noted that the estimated construction cost would be $12 billion, 25% more than Formosa's own public estimates. Formosas ongoing projects in the US include a 207 million USD plant in Texas that was announced in May of this year. About IEEFA: The Institute for Energy Economics and Financial Analysis (IEEFA) examines issues related to energy markets, trends and policies. LLDPE plant and an 800,000 tonne/year EG plant. progressing with plannedactivities at the The plants arent building our communities, said Clyde Cooper, who represents the Fifth District on the parish council. District Judge Trudy M. White initially faulted the department for failing to take environmental justice issues into account or to consider alternate locations for the complex. Email David J. Mitchell at dmitchell@theadvocate.com. We hope this visit inspires others to do the same. In April 2018, the company unveiled its future plastics plant. Want to know how your actions can help make a difference for our planet? The financial outlook has become so bleak that Standard & Poors determined delays in the project have benefitted, rather than hurt, the companys credit rating. The company disputes the accusations about health problems. the plant was slated to release 1.6 million pounds of chemicals yearly, doubling the amount of toxic chemicals released in the area to 3.2 million pounds annually. The planned $9.4bn petrochemical facility, owned by Formosa Plastics, would roughly double toxic emissions in its local area and, according to environmentalists, release up to 13m tonnes of greenhouse gases a year, the equivalent of three coal-fired power plants, to become one of the largest pollution-causing plastics facilities in the world. Parish President Pete Dufresne said he told the Corps has conducted since 2008 on state federal. Community needs Louisiana Tumor Registry Foundation for Democracy from 2017 to 2018 District is 91 percent Black cited inaccurate provided! Claiming the environmental impact from the plant has triggered lawsuits and regular protests from dedicated... 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