Downstream

A low-cost, abundant supply of natural gas and NGLs plus Ohio’s inherent competitive manufacturing strengths make Ohio the logical place for energy generation and petrochemical manufacturing.

The Appalachian Ohio region has established manufacturing sectors in polymers, plastics, fuel additives, methanol, ammonia products, and specialty chemicals. A skilled regional workforce and their strong work ethic have made those companies competitive and successful.

Ethane Processing will be Next Wave

Screen Shot 2016-04-28 at 11.50.15 AMOne of two announced ethane cracker facilities is in the Appalachian Partnership region. PTT Global Chemical will make a final decision on their proposed cracker plant in Belmont County, Ohio, in early 2017.

According to a 2015 study by Cleveland State University, if every existing and planned pipeline was completed and all of the announced ethane cracker plants were constructed, the Utica and Marcellus shale would still produce excess ethane.

$100 million Commitment brings Ethane Cracker Closer

KasichGovernor John Kasich and PTT Global Chemical President and CEO Supattanapong Punmeechaow recently announced PTT’s commitment of $100 million to conduct detailed engineering design work for a cracker plant in Belmont County. “Building an ethane gas cracker in Eastern Ohio has the ability to be a real game changer for our economy as we make our state a hub for the energy industry,” said Kasich. read more

Power Generation is Growing

Taking advantage of abundant, low-cost natural gas, Ohio has 8 natural-gas-fed power plants announced or under development.

$899 million electric plant coming to Carroll County

Screen Shot 2016-04-28 at 11.57.20 AMSwiss company Advanced Power AG announced in early April the location of a natural-gas-powered electric plant near Carrollton. To be built at a cost of $899 million, the 700-megawatt plant can produce enough electricity to power 750,000 homes.

The plant will replace retiring coal-burning plants. According to company officials, it will produce 50 percent of the carbon dioxide and less than 10 percent of the sulfur dioxide and nitrogen oxide produced by a coal- red plant.

The site is 77 acres and the building footprint is 17 acres. An estimated 700 construction jobs and 20-30 permanent jobs will be created.

The plant, Carroll County Energy, is scheduled to begin operations in late 2017.

 

Another 1,000-megawatt gas-fired plant in works for Ohio

Stop me if you’ve heard this before: An out-of-state company plans to build a natural-gas-fired power plant in eastern Ohio.

Houston-based EmberClear Corp. plans to build a $900 million, 1,000-megawatt plant on 60 acres in Harrison County in the village of Cadiz, a hotspot in the Utica shale oil and gas play.

“The abundant natural gas production facilities in close proximity to the project site make this facility uniquely positioned to produce low-cost power,” the Harrison County Community Improvement Corp. said in a statement.

The county estimates adding 500 jobs during the construction phase, and 30 permanent jobs afterwards.

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The announcement comes less than a week after the Ohio Power Siting Board approved a $1.1 billion plant in Columbiana County, also in eastern Ohio. Boston-based Advanced Power Services is building that 1,105-megawatt power plant.

Generally, one megawatt is enough to power 1,000 homes.

The Advanced Power Services plant, operated by subsidiary South Field Energy, plans to start construction in January 2017 and begin operations by January 2020.

EmberClear’s plant is projected to start construction at the end of 2018 and begin operations in early 2021. The EmberClear project, which the developer calls the Harrison Power Project, has not yet been submitted to Ohio regulators. It’s the company’s first in Ohio after proposing four others in Pennsylvania and Mississippi.

Proposed natural-gas plants are dotting the state as larger, costlier coal-fired plants are retired.

EmberClear’s plant marks at least seven gas-fired power plants in some form of development in the state, many of which choose eastern Ohio because of its proximity to oil and gas wells.

Ohio’s electric utilities are not building any of the new plants. They say Ohio’s deregulated market structure makes it too risky, and Columbus-based American Electric Power Company Inc. (NYSE:AEP) is leading a legislative charge to change that.

EmberClear had operated in Alberta, Canada, but in June transferred its assets to Houston-based private investment company Ember Partners LP after it defaulted on more than $6.8 million of unsecured debt.

From Columbus Business First

Headshot ofMike Jacoby

Contact: Mike Jacoby
Vice President, Business Development
mjacoby@apeg.com
740.704.9977