Koch St. James Aims to Improve Methanol Production to Address Pollution and Environmental Equity Challenges

In 2014, Yuhuang Chemical made headlines by announcing its ambitious plan to construct a $1.85 billion methanol complex in Louisiana. This move coincided with a natural gas-driven economic boom that was enthusiastically endorsed by the then-Governor, Bobby Jindal's administration. At the time, this initiative was seen as a renaissance of industrial expansion and a significant generator of job opportunities.

The impetus for this industrial growth was the revolutionary technique of hydraulic fracturing, which had unlocked historically low natural gas prices. This development had prompted a surge in companies setting up shop along the Mississippi River corridor. They sought to capitalize on the cost savings offered by natural gas, a versatile hydrocarbon that serves as both a fuel and a vital raw material for the petrochemical sector.

The landscape has evolved dramatically for the methanol complex in St. James Parish, now owned by a local venture of Koch Industries. The proposed expansion of this facility is encountering mounting resistance from community and environmental groups, primarily driven by concerns about increased pollution.

Although the physical footprint of the facility will remain unchanged, Koch Methanol St. James is seeking approval from the parish to boost its capacity by 25%. This would elevate methanol production from its current output of 5,456 tons per day to 6,834 tons per day.

Methanol serves as a fundamental building block for a wide array of applications, including plastics, adhesives, plywood, paint, and pharmaceuticals. The expansion project anticipates benefiting from a new ethane line, a specific type of hydrocarbon, which is expected to enhance production. Additionally, an upgraded oxygen supply system aims to bolster reliability, and expanded rail facilities are set to streamline shipping processes.

Josh Wiggins, the plant manager, expressed his optimism about the project, stating that it will significantly enhance the site's long-term sustainability and economic viability.

Termed an "optimization project," this $150 million expansion is projected to create between two to five permanent jobs and approximately 400 temporary construction positions. As of now, Koch employs about 115 people in St. James, with approximately a quarter of them residing in the parish. Production at the complex commenced in June 2021.

In addition to the expansion, Koch is seeking property tax exemptions, which could yield savings of up to 80% over a ten-year period, with the initial year resulting in a substantial savings of $741,600, according to state records. The company asserts that both the construction and expanded operations will contribute nearly $4 million in property tax revenue and an additional $2.3 million in sales revenue over the course of a decade to benefit the parish and the state collectively.

However, it's worth noting that Koch's expansion plans entail significant increases in particulate matter, ozone-forming chemicals, and toxic air pollutants. According to permit applications, the permitted levels for combined toxic air pollution would double, while ozone-forming substances would increase by over 80%. Additionally, levels for combined particulate emissions, which can have adverse effects on respiratory and cardiovascular health, would rise by approximately 25%, as indicated in state filings.