According to industry forecasters, including the American Chemistry Council, Louisiana's chemical industry is poised for a booming year with plenty of new development opportunities on the horizon.
No stranger to challenges, in the past year the industry has faced two devastating hurricanes that interrupted production, a global pandemic resulting in supply chain disruptions and a worker shortage - in addition to a damaging misinformation campaign that has been amplified across the country by our national leaders. Expanding federal regulations and an increasingly negative public opinion of the industry have created misperceptions about the current and future growth of Louisiana's chemical industry.
There are multiple areas where experts predict the industry will flourish and continue to grow over the next several years, with many developments already underway - including a recent development in the carbon capture and sequestration sector. Louisiana recently signed an agreement with Oklahoma and Arkansas to create a carbon capture hub and allow the trio to compete for federal dollars to support projects.
The list of new projects in Louisiana continues to grow.
In addition to integrating new technologies into existing systems, Louisiana's natural resources and existing infrastructure are extremely conducive to clean energy development, especially carbon capture and sequestration projects. The Great Plains Institute, a nonprofit organization that studies carbon management, estimated that carbon capture could add 7,000 jobs in Louisiana over the next 15 years if all goes according to plan.
Louisiana's industry infrastructure and expertise make us an ideal location for the transition to a lower-carbon, more sustainable future through a number of systems, including integrating renewable energy and low-carbon solutions into existing manufacturing processes and equipment - including Air Products' $4.5 billion blue hydrogen energy complex that will supply local chemical facilities with a clean source of energy and feedstocks.
Cornerstone Chemical is another prime example of this movement, creating carbon fibers that make airplanes and cars lighter - subsequently using less fuel - and windmills that generate clean energy for Louisiana and beyond.
These are only a few of the new, innovative developments coming to Louisiana's chemical industry; according to Louisiana Economic Development data, the list of new projects in Louisiana continues to grow. Sixty-four new projects were announced in 2021, including a $900 million Cleco carbon capture hub, a $750 million sustainable plastics facility in Acadiana and a $176 million expansion of a graphite facility - all of which will require a huge number of workers to complete.
Louisiana also offers competitive workforce advantages that are designed to propel the state's economy - and industry employees - forward. Louisiana is a right-to-work state with more than $2.9 billion in wages paid annually to chemical industry employees. Although some sectors of industry suffered employee loss during the pandemic, those jobs are beginning to return, signaling an uptick in the construction of new projects across the state. Construction employment is even above pre-pandemic levels in some areas of the state.
Louisiana's chemical industry is actively working to attract, train and retain quality employees from our communities. Our state boasts customized regional and local workforce training initiatives through colleges and partner organizations, including ExxonMobil's North Baton Rouge Industrial Training Initiative, which aims to connect diverse community, industrial and educational partners to provide a sustainable process to train Baton Rouge residents for successful careers in the industry.
As the industry progresses through 2022, there is a lot of be proud of and a lot to look forward to. While the world continues to change, Louisiana's chemical industry is able to adapt, adjust and overcome any obstacle, as evident in its performance over the past two-plus years.
For more information, visit www.lca.org or email info@lca.org.
