Locals fear that if Formosa's Sunshine Project, equivalent in size to 80 football fields, goes ahead, the petrochemical facility could potentially triple their exposure to cancer-causing . a 600,000 tonne/year propane dehydrogenation View projects by client market: Energy Solutions Urban Solutions Mission Solutions Energy Solutions LNG Canada Export Facility Kitimat, British Columbia, Canada Formosa has over 100,000 employees worldwide with locations in the USA, Taiwan, China, Vietnam, Philippines and Indonesia. ethane cracker, a 400,000 tonne/year linear low piles and a pipeline removal. factors, said Parks. It would be located a mile from the local elementary school and two miles downriver from the Sunshine Bridge, part of an 85-mile expanse from Baton Rouge to New Orleans thats dubbed Cancer Alley. Under state environmental regulations, it would be allowed to emit more than 800 tons a year of toxic chemicals, nearly 6,500 tons of pollutants known to cause respiratory ailments, and more than 13.6 million tons of greenhouse gases annually. Key financial decisions affecting the proposed Formosa complex have deteriorated over the past year, said Sanzillo. Formosa has over 100,000 employees worldwide with locations in the USA, Taiwan, China, Vietnam, Philippines and Indonesia. Source: Elaine We are listening to local concerns and developing programs that meet real community needs. The No. I was hoping they wouldnt agree and would walk away. Instead, at the last moment, the company agreed. 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for the Sunshine Project, a $9.4 billion plastics plant that Formosa has been trying to build for three years, but it rescinded them a year ago. 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.". 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. Fluor B.V. Taurusavenue 155 2132 LS Hoofddorp The Netherlands. 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. 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. Understand market developments and complex data and what they mean to you. Formosa's Louisiana Project Update: Supply and Demand Dynamics, Legal Challenges Bode Ill 5 Figure 2: New Global Ethylene Capacity (2016-2026) Source: IEEFA and IHS Markit data. Consequently, the plant has been termed a significant example of environmental racism in the US. He is a freelance journalist, as well as a translator. At the very least, the ruling will delay the plant for some years. progressing with plannedactivities at the He identifies research topics for exploration and examines issues relevant to IEEFAs mission. The yellow line marks a distance of two miles from Formosa's site. Throughout the 2020 presidential election, Joe Biden made frequent references to Cancer Alley and called the region out by name when signing a series of climate and environmental justice orders. At IEEFA, he conducts in-depth research for our petrochemicals group analysing industry trends, regulations and company data. Activities will continue throughout the second ", "LDEQ handles all issues with a fair and equitable approach," the agency said. After Tsuang was sued for defamation by Formosa Plastics, over 1,000 academics worldwide would rally in defense, with a petition. relocations, soil testing, placement of test Still unresolved is a state lawsuit challenging 14 air permits issued by the Louisiana Department of Environmental Quality. 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. 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. Woodrows grocery closed down. It will produce polyethylene, polypropylene and other chemicals. SpaceXs launch of Starship could remake space exploration, Russians boasted that just 1% of fake social profiles are caught, leak shows. "The widespread impacts of a global pandemic, including the challenge it creates in evaluating construction costs and the restrictions it has . I want people to have jobs. At the other, two rounds of investigation detected nothing. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.Want to learn about how we can work together to bring you actionable insight and support your business decisions? During Black History Month this year, a few dozen members gave speeches, played music and danced just outside the fence. Like Formosa, FG has a deep commitment to social, environmental and safety performance and will keep the community updated and informed as The Sunshine Project moves forward. The review means construction on the project won't be starting anytime soon. 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. ", "This is the first time a government official has taken the time to see our humanity," Lavigne said. In October 2020, S&P downgraded Formosa in part due to the cash drain on the company from its Louisiana project. 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. Formosa was protected during the incident by the Vietnamese government, which arrested critics, likely due to the fact that the steel mill that caused the fish die-offs represented a 10.6 billion USD investment. Monday. Please select at least one newsletter to subscribe. Last year on June 19 Juneteenth RISE St. James had to ask for a court order to be allowed access to the site. Taiwanese academic Tsuang Ben-Jei of National Chung Hsing University being sued by Formosa Plastics, Cross Strait Relations Between Taiwan and China, Calling For a Return to Sinocentrism in the Name of Opposing It: Responding to Reconsidering Sinophone Studies. Fluor Federal Petroleum Operations (FFPO) is a special-purpose company formed for the sole purpose of managing and operating the Strategic Petroleum Reserve (SPR) under a prime contract with the. Other questions:subscriberservices@theadvocate.com. He recently commissioned a study by consultant Atlas Environmental that found the Corps has already followed the rules on state and federal permitting. Despite assertions made by outside groups about ancestral ties to the site, no archaeologist has been able to confirm the identity, ethnicity or race of the remains discovered on [Formosa] property, Parks said in her email. Its possible health consequences scared her. The subscription platform provides access to our full range of breaking news and analysisContact us now to find out more. Thumbnail image shows PE, one of the Some people think I voted for Formosa because I was for them, Cooper said Wednesday. 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. construction will proceed dependent on several 2017-2023 FG LA LLCAll rights reserved. The company has not confirmed the larger amount but has acknowledged rising construction costs. The Sunshine Project is located in what is often referred to as Cancer Alley, due to the high rates of cancer for local residents. People in Saint James dont speak up, not when jobs are on the line, Lavigne said. The project, which would manufacture several types of plastic resins with ethane as its feedstock, may suffer from volatile polyethylene prices. "I mean really the goal of the EIS is to get everybody's input," Mayer said. 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. About IEEFA: The Institute for Energy Economics and Financial Analysis (IEEFA) examines issues related to energy markets, trends and policies. Tom Sanzillo of the Institute for Energy Economics and Financial Analysis argues that the plants likely construction cost overruns and tight profit margins make it harder to justify, especially given a global oversupply of plastics. Now the Corps of Engineers is conducting a more thorough review called an "environmental impact statement." 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. oil price crash impact on chemicals topic This would have been primarily from the use of ethane and propane. Polyethylene prices hit record levels last year but appear to have peaked; spikes since then have been driven by temporary factors such as rising oil and gas prices, inflation, and market turmoil. House Natural Resources Committee Chairman Ral M. Grijalva (D-Ariz.) and Rep. A. Donald McEachin (D-Va.) are urging the president to permanently revoke the Army Corps permit. The company, said senior staff attorney Pam Spees, showed no regard for the significance of the cemeteries and what their discovery would mean to the surrounding community., Formosa has taken out large newspaper ads to respond. A portion of the project site sits atop ancestral burial grounds, now a grassy field surrounded by a chain-link fence. Formosa defers major construction on US Sunshine Formosas ongoing projects in the US include a 207 million USD plant in Texas that was announced in May of this year. 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. They estimated the combined equivalent of annual carbon dioxide emissions there could exceed those of 113 countries. The case to us is clear that there is no market need for this plant, the state can do without it, and, to a good segment of the population living there, the project is a horrible burden, the poster child for environmental racism, noted Sanzillo, the institutes director of financial analysis. Fluor GmbH. wideningHighway 3127 expansion, utility But the companys prospects here are suddenly far from certain. The Sunshine Project has received the permits needed to begin the construction phase and activities at the site are underway. Formosa anticipates hiring for about 8,000 temporary construction jobs and then hiring 1,200 permanent workers after that. 2017-2023 FG LA LLCAll rights reserved. As of 2020, 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. 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.". As a result, FG has deferred major 1155 Gratiot Avenue Our outreach focuses on four key pillars of need expressed by the community. 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. "The health and safety of our residents is of the utmost concern," Dufresne said he told the Corps officials. Our outreach focuses on four key pillars of need expressed by the community. The site sits in a heavily industrialized region between New Orleans and Baton Rouge, known colloquially as Cancer Alley. Several groups of independent scientific experts have rallied on the communitys behalf. Epidemiological studies in the region consistently sound alarms. In 1993, community leaders thwarted Formosas plans to build a wood pulp and rayon plant in Wallace. Do you have some thoughts you'd like to share with our readers? Pollution takes centre stage for Louisiana congressional hopefuls, Original reporting and incisive analysis, direct from the Guardian every morning. Formosa or Formosa-owned companies have caused a number of environmental disasters internationally. We brought their own pollution back to them, said Rolfes, who was accused along with her companion of terrorizing. The charges, punishable by up to 15 years in prison, were later dropped. Buena Vista Baptist Church now worships a couple thousand feet from a methanol plant and asphalt depot. The Department of Energy has awarded a Hanford site contract with an estimated value of up to $45 billion over a decade to a newly formed limited liability . Connecting markets and data, enabling customers to make smarter business decisions. Last August, a container fell off a ship in New Orleans, dumping hundreds of millions if not billions of nurdles into the Mississippi. suggested the states higher reported cancer rates were due to higher incidence of cigarette smoking, obesity and viral infections. She said: Nobody took it upon themselves to speak for St James Parish until we started working to stop Formosa Plastics. 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. The 2,400 acres that Formosa owns in St. James Parish were rezoned residential/industrial in 2014 by the planning commission and parish council. April 19, 2021 at 7:00 a.m. EDT. Re/writing COVID-19 in China: Solidarity as Metonym for Historical Truth? project in Louisiana, a spokesperson said on One affiliated with the United Nations Human Rights Council concluded last month that the Formosa plant would more than double the parishs cancer risks, which it said would be skewed toward African Americans. 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. Gain insight on the gap in the circular economy, and how global transparency plays a crucial role on development of factors which lead to a circular economy. The company has received all environmental 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. restrictions it has placed on international FG also needs to hire a contractor to do the analysis under the Corps' direction. Kimberly Terrell, a staff scientist at Tulane Universitys Environmental Law Clinic, calculates Formosas plant would emit 95 tons of cancer-causing chemicals a year, including hexane, carbon monoxide and benzene. The 14 separate plastic plants, spread over a gargantuan 2,300 acres of land in St James Parish, could also emit up to 15,400 pounds of the cancer causing chemical ethylene oxide. nations third-biggest producer of natural gas. In 2016, a steel plant owned by a Formosa subsidiary caused millions of dead fish washing up on the shorelines of four Vietnamese provinces, consisting of some 200 kilometers of shoreline. 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. 1.2m tonnes/year ethane cracker, a 400,000 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. Thats one of several fronts it is fighting. 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. Mobilizing people has been difficult, especially during the coronavirus pandemic. View upcoming events and training courses produced by ICIS for the industry. Specifically, EPA said it would review whether an Aug. 5, 2021, decision by the LDEQ to reissue 14 permits to Formosa "will subject the predominantly Black residents of St. James Parish to disproportionate levels of air pollution emitted by Formosa.". The cleaners and post office shut their doors for lack of business. It included stops in St. James and St. John the Baptist parishes. Suzanne Mattei, an IEEFA energy policy analyst and co-author of the report, said an environmental impact statement is likely to have to address the issue of water pollution caused by discharges of plastic pellets; a federal judge recently ordered Formosa to resume cleaning waters contaminated by its petrochemical complex in Port Comfort, Texas. The planned construction, branded the Sunshine Project and proposed by a Formosa subsidiary named FG LA LLC, has been the subject of a number of federal and state lawsuits. 3127; 04.23.18 | Louisiana Governor introduces The Sunshine Project Email notifications are only sent once a day, and only if there are new matching items. FG LA LLC (FG)has received the permits needed to begin the construction phase of The Sunshine Projectand activities at the site are underway for theestimated $9.4 billion industrial complex to be located on the west bank in St. James Parish, Louisiana. Gain insight on polyethylene (PE) and polypropylene (PP) global supply glut in 2023 by this ICIS whitepaper. Those critics welcomed the Corps' increased scrutiny. 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 . Plastics News would love to hear from you. You have permission to edit this article. The company disputes the accusations about health problems. Then the local landmarks began to disappear. On April 8, in a symbolic gesture, the New Orleans City Council voted unanimously to declare its opposition. 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. Formosa has over 100,000 employees worldwide with locations in the USA, Taiwan, China, Vietnam, Philippines and Indonesia. We are listening to local concerns and developing programs that meet real community needs. FG LA LLCsproposedchemical Click here to view the ICIS Coronavirus, 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. This is someone outside of Louisiana demanding these communities live in poverty, sacrificing Louisiana jobs and economic security to satisfy their conscience., Biden has given the task of scrutinizing complaints about environmental justice to the Council on Environmental Quality, run by Brenda Mallory. Copyright 2023 LexisNexis Risk Solutions, ICIS Webinar: The global gas market and its growing influence on US natural gas. In addition, IEEFA found the market for Formosa products is oversupplied. 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. 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. and/or an effective vaccine is widely Formosa plans to operate the complex under its subsidiary and Louisiana registered company, FG LA LLC, and is branding the site as "The Sunshine Project." Pending the completion and approval of permits for the site, FG could begin construction as soon as 2019 in what projects to be a 10-year building and development process in two phases. They also left notes: We have delivered this package of nurdles as a reminder Louisiana does not need any more pollution, plastics or otherwise.. 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. The Formosa Sunshine Project in St. James Parish, Louisiana, will undergo a full formal environmental review, the U.S. Army Corps of Engineers announced in a memorandum issued today and posted on Twitter. Email your letter to Editor at [emailprotected]. Oftentimes, this draws on being grandfathered in through weaker past environmental regulations to avoid conducting an environmental impact assessment. FG LALLC (FG)isa memberof Formosa Plastics Group(Formosa), a Taiwanese-basedconglomeratefounded in 1954. And they will fall., This is environmental racism: How a protest in a North Carolina farming community sparked a national movement, A poultry plant, years of groundwater contamination and, finally, a court settlement, Block by block, he aims to fight injustice and save the planet, Big Tech news and how to take control of your data and devices, Huge plastics plant faces calls for environmental justice, stiff economic headwinds. But the plant has triggered lawsuits and regular protests from a dedicated group of local residents and environmentalists. "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. 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. The companys products also help make life-saving [personal protective equipment], including N95 and surgical masks needed in the fight against COVID-19.. St. James Parish already contains 12 petrochemical facilities within ten miles and is home to predominantly low-income Black communities. He has produced influential studies on the oil, gas, petrochemical and coal sectors in the U.S. and internationally, including company and credit analyses, facility development, oil and gas reserves, stock and commodity market analysis, and public and private financial structures. Over 169 illegal dumping sites, including more than 8,000 tons of mercury waste, have been linked to Formosa Plastics in Taiwan. Follow David J. Mitchell on Twitter, @NewsieDave. evaluating construction costs and the The announcement comes after the agency suspended an earlier permit last November, after acknowledging errors in its original analysis. In 2016, a steel plant owned by a Formosa subsidiary caused millions of dead fish washing up on the shorelines of four Vietnamese provinces. I said, 'I cannot lead my community just based on gut feelings. Tel: +49 (0) 621 39731 5555. Heavy manufacturing moved in. 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