Friday, November 14, 2014MIDLAND, Pa. – In about 30 days, Shell Chemicals should announce that it's ready to begin remediation work on more than 540 acres in order to prepare the land for its proposed multibillion-dollar ethane cracker plant here.
"That's part of the permitting process in Pennsylvania," said Randy Armstrong, Shell's senior environmental adviser. "You're required to give a notice to the public that the process is starting. I think we'll be ready within the next 30 days."
Last week, Shell Chemicals, a division of energy giant Royal Dutch Shell, exercised its option to purchase the former Horsehead industrial property along the Ohio River in Monaca, Pa., its preferred site for the plant.
The build site encompasses 546 acres just off Interstate 376 along the Ohio River.
It's estimated that Shell could invest between $2 billion and $4 billion to construct the plant, create 400 permanent jobs and more than 6,000 temporary jobs during the construction phase.
Still, Shell has not made a final decision as to whether it will move forward with the project, Armstrong cautioned, and there is no timetable for making such a decision.
"It is a process that we go through," he said. "We passed a key milestone last week, and that property purchase was required to get one of the permits from the U.S. Army Corps of Engineers and the state," he clarified. "That doesn't mean we're coming."
Many other variables need to fall in place including design, permits, overall development plans, remediation plans and construction plans, and negotiations with the state and local communities, Armstrong said.
"One of the key things I'm working on is getting the environmental permits," he said. "We're continuing down that process of doing everything you would need to do to be ready to build this facility."
Armstrong and other Shell representatives participated in a panel discussion Thursday morning at the Lincoln Performing Arts Center in Midland, where about 200 residents gathered to hear specialists address questions related to the environmental impact of the plant. Another informational meeting took place last night.
The company wants to collect input from the community and in turn provide them information about the proposed "cracker" plant. If built, the processing facility would manufacture polyethylene pellets from ethane gas pumped from the Utica and Marcellus shale plays in eastern Ohio and western Pennsylvania.
These polyethylene pellets -- the largest mass-produced plastic in the world -- provide the basic ingredients for countless products ranging from plastic bags to automotive components. "We want to be a part of that market," Armstrong said.
Todd Whittemore, the lead on Shell's process-design and operations team, said work has started at the site, and several buildings have been torn down in order to prepare it for remediation. "The site is almost clear now, and we're at the phase where we can actually start building the site as opposed to deconstructing the site," he said.
Most of the public discussion centered on the plant’s impact on water and wildlife in the area. Once operating at full capacity, Wittemore said the ethane cracker would use about 20 million gallons of water a day from the Ohio River. This water would be recycled through the system to produce steam, which would generate heat to the entire process.
Armstrong said water treatment, monitoring and testing would be ongoing throughout the construction process, while a plan on how to cap over and remediate the brownfield site would need to be prepared.
Other modifications such as storm water management through the use of culverts, retention ponds, and sewage control with nearby municipalities would also be put in place.
Wildlife such as osprey that have nested atop of high-voltage transmission towers would be protected, and a plan developed to consider accommodating eagles that have returned to the area, Armstrong noted.
The Monaca location proved logical, he said, since it included 146 acres of flat land, which is valuable in this hilly region of Pennsylvania.
For many of those attending the public meeting, Shell's project is reminiscent of other large-scale projects developed in western Pennsylvania and northeastern Ohio since energy companies started prospecting oil and gas from the Utica and Marcellus shale plays.
Joseph Pertaconi, a project engineer from Bristolville who was part of the team that constructed Vallourec Star's $1 billion plant in Youngstown, said a Shell cracker would be and exciting jolt for the entire region.
"Shell's presence here is going to have a major impact -- not just to the local area in Beaver County -- but also throughout West Virginia and southeast Ohio," he said.” It’s exciting to be a part of this."
Pertaconi said the process that Shell is moving through reminds him of the same process that Vallourec pursued when it constructed the new Youngstown mill.
"It was a seven-year process before we put a shovel into the ground, and I think that's where we are right now -- the due diligence, the demolition, the permit process," he noted. "This is a great opportunity."
Moreover, support businesses and industries are likely to follow should Shell construct the plant, added Beaver County Commissioner Dennis Nichols.
"The economic impact can't be overstated," he said. A study conducted by the Pennsylvania Economy League found that total job creation as a result of the plant could number 18,000 positions across the tri-state area.
These jobs would be tied to service businesses such as hotels and restaurants, related companies in the petrochemical markets, manufacturers, and suppliers, Nichols said.
"The numbers I've heard is it could have a $4.5 billion a year input into the local economy."
Pictured: Last week, Shell Chemicals, a division of energy giant Royal Dutch Shell, exercised its option to purchase the former Horsehead industrial property along the Ohio River in Monaca, Pa., its preferred site for the plant.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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