Mitsubishi Chemical Corp. is abandoning its plan to build a $1. 3 billion methyl methacrylate monomer (MMA) plant at Geismar, the company announced Tuesday.
Despite the growing demand for MMA, the company cites its ability to quickly meet demands with production facilities in Tennessee and elsewhere, as well as the failure of long-term negotiations with customers, as reasons for its decision.
As previously reported via the Daily Report, BRAC and LED initiated talks with the company about a potential MMA plant in 2016. To secure the project, announced in December 2020, state officials proposed an incentive program that added the LED FastStart program, as well as a $4 amount. $1 million performance-based grant to offset infrastructure costs, payable in two matching installments in 2024 and 2025, as capital expenditures are certified.
Firstly, the company was expected to make its final investment decision in 2022, but announced that it would postpone that decision for another six to 18 months due to market volatility.
The goal was to use the company’s patented “Alpha Method” technology, exploiting ethylene derived from American shale gas.
Early last year, as the company sought environmental permits, local environmental groups opposed the project. Over the summer, a report by a group of energy experts condemned the project, saying the Mitsubishi plant was “the project, in the position and at the time, with the monetary scenario. “