30 May 2012 15:54 [Source: ICIS news]
HOUSTON (ICIS)--US chemical maker Dyno Nobel International is nearing completion of a feasibility study on building an $800m (€640m) ammonia production facility in Waggaman, Louisiana, sources confirmed on Wednesday.
Utah-based Dyno Nobel is considering the development of a 750,000 tonne/year anhydrous ammonia plant on the site of a previous ammonia plant at Cornerstone Chemical's existing complex on the west bank of the Mississippi River in Jefferson Parish.
"The plant is on a brownfield chemical complex site that currently has several downstream chemical plants operating and one that would off-take ammonia from the plant," said Dyno Nobel president Simon Atkinson.
"In addition, the site has a capital advantage as the infrastructure for the ammonia plant already exists," Atkinson said.
In a statement last week, Louisiana Governor Bobby Jindal said the proposed project would create 50 new permanent jobs for Cornerstone Chemical and 10 permanent jobs for Dyno Nobel. In addition, 440 new indirect jobs would be created.
Cornerstone currently has 441 employees at the Waggaman complex.
If the $30m feasibility study confirms proceeding with the project, Dyno Nobel will announce a decision to move forward in the first half of 2013, with initial production arriving in late 2015, Governor Jindal said.
"The US Gulf coast economic model has changed due to the advent of advanced drilling and extraction techniques and the associated impacts on natural gas pricing," said Cornerstone Chemical chief executive Greg Zoglio.
"Dyno Nobel's foresight of this paradigm shift, coupled with the brownfield offering by Cornerstone Chemical and project support by the State of Louisiana, will allow the resurgence of world-class ammonia production in the state," Zoglio said.
($1 = €0.80)
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