Chemical firms welcome new US Senate energy bill

22 June 2007 21:09  [Source: ICIS news]

WASHINGTON (ICIS news)--Chemical manufacturers on Friday welcomed US Senate passage of a new energy bill, saying it will help stimulate use of energy-saving chemical and plastic products and also ease demand pressure on natural gas feedstock.

 

Jennifer Scott, public affairs director for the American Chemistry Council (ACC), said the Senate bill’s requirements for improved energy efficiency in US automobiles, existing buildings and new construction likely will create business opportunities for chemical-derived products such as lightweight auto components and lubricants, building insulation, sealants and other energy-saving applications.

 

She said the bill’s requirements for improved energy efficiency in buildings and construction also will benefit the chemicals industry by easing demand growth for natural gas, favoured for home-heating and as a cleaner-burning fuel for electric power.

 

Natural gas is the principal feedstock for US chemicals manufacturing.

 

The Senate voted late on Thursday to raise the minimum fuel efficiency standard for US-made autos from the current 25 miles per gallon (mpg) to 35 mpg by 2020. The bill also called for a nearly four-fold increase in US production of biobased ethanol to 36bn gal/year by 2022. 

 

The measure will advance research and development (R&D) toward carbon capture and sequestration, a technology goal that would enable broader and less environmentally hazardous consumption of vast US coal supplies.

 

The carbon capture and sequestration R&D goal, said Scott, “is helpful to enable coal to remain part of the US fuel mix - again helping to prevent a scenario in which utilities, asked to reduce emissions, use all of the available natural gas - which again means it’s not available to us as feedstock”.

 

The bill’s sharply increased goal for US biobased fuel production was welcomed earlier on Friday by the country’s ethanol producers, but the measure’s provision for increased scrutiny of gasoline production and alleged gas “price gouging” has angered US refiners.

 

The Senate bill must be reconciled with energy legislation still pending in the House.

By: Joe Kamalick
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