TEXAS
Large Scale Carbon Capture Facility Nears Completion
Houston-based Occidental Petroleum is nearing completion of its innovative “Stratos” facility in West Texas, which aims to capture and store carbon dioxide from the atmosphere starting next spring. Stratos will be the company’s first large-scale facility to directly remove carbon dioxide from the air, with a target of capturing 500,000 metric tons annually. Occidental plans to establish multiple similar facilities in the future, leveraging its experience in carbon management to secure permits for the long-term underground storage of captured carbon. The project benefits from a federal tax credit of $180 per metric ton of CO2 captured and has garnered support from companies like Microsoft, which has agreed to purchase carbon removal credits from Stratos. Read more
Oldest Houston Area Refinery to Shut Down
LyondellBasell is set to close its Houston refinery and exit the refining industry by the end of the first quarter of 2025. Established in 1918, this refinery is the oldest on the Houston Ship Channel and produces transportation fuels like gasoline, diesel, and jet fuel. The closure represents a significant shift in Houston’s energy landscape and threatens the jobs of approximately 1,000 employees at the site. CEO Peter Vanacker stated that the company is considering several potential uses for the site after closure, including recycling plastic waste into feedstocks, retrofitting it for renewable and bio-based production, or converting the refinery into a hydrogen facility. The shutdown process will begin in January 2025 with total costs associated with exiting the refinery business estimated to be between $610 million and $980 million. Read more
University Offers Land for Nuclear Reactors
Texas A&M University is taking steps to offer land at its Rellis Campus in Bryan for the construction of advanced nuclear reactors, potentially becoming the only higher education institution in the country with a commercial nuclear reactor site license if approved by federal regulators. The university’s Board of Regents moved to notify the Nuclear Regulatory Commission of its intent to seek an early site permit for reactors on the 2,300-acre campus, aiming to host around five small modular reactors ranging from 10 to 200 megawatts by the early to mid-2030s. The Biden administration has allocated $900 million to support small modular reactors, but the future of nuclear funding remains uncertain with the return of former President Donald Trump, who has raised concerns regarding the technology’s costs and safety. Read more
Marathon Oil to Lay Off Workers Following Merger
Marathon Oil plans to lay off over 500 employees as part of its $22.5 billion merger with ConocoPhillips, according to a letter sent to the Texas Workforce Commission. The specific number of affected positions and job types were not disclosed, but the layoffs are expected to occur within a year after the merger finalizes in the fourth quarter of 2024. Employees at Marathon’s headquarters in CityCentre, Houston, will be informed of their employment end dates within a month of the merger’s completion, although many will be retained for transition roles, with more than half of these roles expected to last beyond six months. ConocoPhillips had previously indicated that the merger would yield annual savings of $500 million, primarily through reductions in general and administrative costs. While ConocoPhillips’ CEO suggested that these savings would not lead to workforce reductions, Marathon employees did not receive similar assurances. ConocoPhillips has around 2,100 employees in Houston, while Marathon had 774 employees in the area as of 2022. Read more
LOUISIANA
Facebook’s Meta to Build $10 Billion Artificial Intelligence Data Center in NE Louisiana
Meta, the parent company of Facebook and Instagram, has announced a major economic development project in northeast Louisiana, planning to build a $10 billion AI Data Center in Richland Parish. The facility will be located on a 2,250-acre site between Rayville and Delhi, about 30 miles east of Monroe. The project is expected to create over 1,500 jobs, including 500 direct positions and more than 1,000 indirect jobs, with around 5,000 construction workers needed at peak times. Construction is set to begin in December and continue through 2030, with Meta also committing more than $200 million for local infrastructure improvements. Meta’s data center will process large amounts of data for AI technologies, benefiting from Louisiana’s new incentive programs aimed at attracting such projects. The Louisiana Community and Technical College System is also involved, providing funding to develop programs that will prepare the workforce for construction and data center operation roles. Entergy Louisiana has committed to support the data center with clean, renewable energy and to contribute to low-income assistance programs. Read more
Grain Terminal Lease Opposed by Residents
Residents of New Orleans’ Lower 9th Ward and Holy Cross neighborhoods are opposing a $30 million grain terminal being developed by Canada-based Sunrise Foods International at the Alabo Street Wharf, citing concerns over pollution and noise. The terminal will handle weekly shipments of organic grains, and the trains will pass through the neighborhood twice daily, five days a week. Despite assurances from Sunrise Foods and Port of New Orleans officials that the project will revitalize commerce, locals worry about grain dust, rodent attraction, and diminishing property values. Many residents claim they were unaware of the project until after its approval, leading to heated discussions at community meetings. This terminal will be unique as the only one in a U.S. urban residential area, raising further community apprehensions about its impact on local quality of life. Read more
Shell Chemical Fined for Air Quality Violations
Shell Chemical has agreed to pay more than $133,000 to settle air quality violations linked to its Norco operation, which reportedly released hundreds of thousands of pounds of pollutants over two years. This settlement marks the second agreement this year with the state Department of Environmental Quality, following a total of $836,225 in fines for various pollution incidents at the Norco plant. Recent flaring incidents were deemed preventable and resulted from equipment breakdowns at the East Site oil refinery and chemical complex. Shell produces chemicals like ethylene and propylene at this site, as well as gasoline. Read more
Mississippi River Reintroduction into Maurepas Swamp Project Begins
Louisiana’s levee system’s control of the Mississippi River to prevent flooding has led to the decline of the Maurepas Swamp, a vital 176-square-mile forested wetland near New Orleans. In response, state and federal authorities have begun a $330 million conservation project to divert water from the Mississippi back into the swamp, with the aim of revitalizing approximately 45,000 acres of this ecosystem. The River Reintroduction into Maurepas Swamp project will enable up to 2,000 cubic feet per second of river water to flow into the swamp, helping to restore its health by providing essential nutrients and sediment that mitigate land subsidence. The project, which is expected to show results by 2028, has garnered broad support from local communities and officials, differentiating it from more controversial state projects. Funding comes primarily from the Gulf Coast Ecosystem Restoration Council, utilizing settlement funds from the 2010 Deepwater Horizon oil spill. Read more
Largest Ammonia Production Facility Planned for South Louisiana
A proposed $7.5 billion ammonia production facility in Ascension Parish aims to position Louisiana as a leader in clean energy. This facility, described as the largest ammonia production facility, is backed by Clean Hydrogen Works (CHW) and has completed key financial milestones, including budget finalization and financing in 2023. The project will enhance global ammonia production capacity by 150 percent over 25 years. Partnerships include ExxonMobil for carbon capture and storage, Hafnia for global distribution, and MOL for transportation logistics. A final investment decision is expected in 2025, with operations slated to begin in 2029. The facility will produce ammonia for various applications, particularly in decarbonizing energy systems, targeting markets in Japan, Korea, Europe, and marine transport. Read more
MISSISSIPPI
PCC GulfChem Announces New Manufacturing Operations
PCC GulfChem Corporation has announced plans to establish manufacturing operations in DeLisle, with a corporate investment of at least $540 million, creating approximately 85 direct jobs. The project will also generate hundreds of contractor and construction jobs during its initial phases. PCC GulfChem, a subsidiary of Germany’s PCC SE, will co-locate its operations with The Chemours Company to produce chlorine and various downstream products at the Chemours DeLisle Plant. The Mississippi Development Authority is providing support through the Mississippi Flexible Tax Incentive (MFLEX) program, with additional assistance from Harrison County. Read more
Danish Company ROCKWOOL to Invest in New Production Line in its Mississippi Plant
The ROCKWOOL Board of Directors has approved an investment exceeding $100 million to establish a new production line for industrial insulation products at its facility in Marshall, Mississippi. This initiative aims to meet the increasing demand for insulation solutions in the Gulf of Mexico region’s process industry. The new production line will utilize ROCKWOOL’s proprietary technologies, WR-Tech™ for water repellency and CR-Tech™ for corrosion resistance, to produce advanced insulation products designed for harsh industrial environments. The new production line is expected to be operational by 2027. Read more
ALABAMA
Gulf Coast Corridor Improvement Project Will Connect Alabama, Mississippi, Louisiana
Groundbreaking for the revival of passenger rail service between Mobile and New Orleans took place in October, with service expected to start in spring 2025. This restoration of Amtrak’s Gulf Coast Corridor will reconnect communities such as Pascagoula, Biloxi, and Gulfport, which have not had rail service since Hurricane Katrina in 2005. The Gulf Coast Corridor Improvement Project has received substantial federal support, with U.S. Secretary of Transportation Pete Buttigieg calling it a significant milestone for the region. Funding has come from various federal grants, including over $2 million for planning and upgrades, $5.45 million for operational costs, and $33 million for infrastructure improvements, complemented by matching funds from Louisiana, Mississippi, and Alabama. Read more
