SABIC invests on state-of-the-art cogeneration plant at U.S. facility

The company announced two major investments at its largest U.S. facility aimed at further increasing the business’ global competitiveness and sustainability by enhancing the reliability and efficiency of production. These investments at the Mount Vernon, Indiana site will benefit the business’ customers through efficient and reliable production, and the local community with the anticipated creation of between 150 and 200 temporary construction jobs over two and a half years.

The first investment involves the production of a state-of-the-art cogeneration (CoGen) plant that will use natural gas to create a majority of the steam for the site. Currently, coal boilers power 40 percent of the site’s steam. The EPA recently issued new Boiler Maximum Achievable Control Technology (MACT) Standards for industrial, commercial, and institutional boilers. Innovative Plastics is building a CoGen plant that addresses the EPA standards and offers an economical and sustainable solution by leveraging the long-term supply of natural gas.

The CoGen plant is expected to reduce the Mount Vernon facility’s greenhouse gas intensity, which includes GHG from the site and from electricity used from the regional grid, by 35 - 40 percent compared to a 2010 baseline. The GHG intensity savings are equivalent to removing more than 110,000 passenger vehicles from the road annually. In addition, the CoGen plant is expected to enhance the plant’s energy efficiency, helping reduce costs over the long-term.

The second investment, which is designed to streamline the efficiency of the chemical production process, will reduce energy intensity, and promotes safety and sustainability. The new technology is expected to operate 20-30 percent more efficiently than the current technology, using less steam and electricity, further increasing the Mount Vernon site’s competitive position. Additionally, this significant investment will enable the site to reduce its GHG intensity. The new technology is expected to be completed in 2015 and, compared to a 2010 baseline, is expected to reduce GHG intensity equivalent to removing nearly 3,000 passenger vehicles from the road annually.

The Mount Vernon site is SABIC’s largest U.S. manufacturing facility employing approximately 1,200 employees. The site began operations in 1960 producing one product – LEXAN? resin. Continued investments in the Mount Vernon site over the years have turned the site into a best-in-class SABIC facility with expanded manufacturing capabilities to produce core and specialty products.

Detailed design, construction, and environmental plans for both investments are being created. The business will then work with local, state and federal officials to obtain the appropriate regulatory approvals in order to begin construction.