ExxonMobil is actively exploring the possibility of investing $264 million in three potential projects in the Baton Rouge area, according to company officials. These projects include the establishment of a high-grade isopropyl alcohol unit for microchip manufacturing, a new resin production facility at ExxonMobil's Port Allen lubricants plant, and the development of an advanced plastics recycling facility, which was previously disclosed in March 2022.
Final investment decisions on these projects are expected in the first half of 2024 as ExxonMobil continues to develop the necessary technology and determine the ideal locations for these facilities. The company is currently assessing the economics and market demand for the products to finalize the project details and costs.
Out of the total potential investment, approximately $155 million would be directed towards East Baton Rouge Parish, while the remaining $109 million would go to West Baton Rouge Parish. If these projects proceed, they are projected to create over 50 new jobs and generate over $21 million in payroll for new jobs and construction. Additionally, the projects would contribute around $23 million in new tax revenue for the state over a span of 20 years.
Although ExxonMobil is considering other sites nationally and globally for these projects, Baton Rouge stands out as the only location producing isopropyl alcohol for the company and is home to the world's largest isopropyl production facility.
ExxonMobil officials emphasized that decisions regarding all three projects are still subject to change based on economic factors and customer demand. However, Jennifer Purpera, Baton Rouge project development lead for ExxonMobil, expressed enthusiasm for the potential impact of these projects on global sustainability and highlighted the company's commitment to technology and project development.
The advanced plastics recycling facility aims to convert plastic waste that cannot be mechanically recycled into new plastic materials, such as polypropylene. This process focuses on "film types of plastics," including shrink wrap and food bags. It builds upon ExxonMobil's Baytown advanced recycling facility, which opened in late 2022 and has the capacity to process up to 80 million pounds of plastic waste annually. ExxonMobil aims to recycle 1 billion pounds of plastic waste per year companywide by 2026.
The proposed isopropyl alcohol unit would produce an "ultra-pure" version of the substance for microchip cleaning in line with the CHIPS and Science Act, a federal legislation enacted in 2022 to bolster U.S. semiconductor manufacturing. Specialty chemical companies would be potential customers, making slight modifications to the material before supplying it to microchip producers.
Additionally, the resin production unit would manufacture thermoset resin, a state-of-the-art material suitable for various applications, including wind turbines, concrete reinforcement, pipe insulation, and anti-corrosion coatings.
In other news, ExxonMobil's $240 million expansion project at its Baton Rouge refinery is expected to be completed by the end of this year, with full production ramping up in early 2024. The project, which commenced in 2021, aims to enhance the refinery's capabilities to handle a broader range of crude oil and maintain its relevance in the industry.
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