Commissioners unanimously accepted the withdrawal of Air Liquide’s tax abatement application and canceled the application’s Aug. 3 required public hearing Monday morning.
Air Liquide announced a $200 million investment to build a new Partial Oxidation (POX) unit at Oxea's chemical manufacturing site in Bay City on July 9.
The unit is scheduled to start up in 2029 and is expected to reduce Air Liquide's net carbon dioxide emissions by approximately 64,000 tonnes annually through an on-site CO2 recycling loop.
“By expanding its robust pipeline network and industrial footprint in the U.S. Gulf Coast, Air Liquide continues to support its partners further expand in the United States, and seize opportunities in key industrial basins with low-carbon, competitive, innovative and reliable solutions,” reads the company’s July 9 press release.
“The unit will provide reliable, large-scale syngas and low-carbon hydrogen production to support Oxea's rising chemical demand, but also the expansion of its oxo-alcohols and performance chemicals operations, leveraging its long-standing presence at one of the most feedstock-advantaged sites in the U.S. Gulf Coast.”
Due to the press release’s timing and content affirming the $200 million investment with construction on the unit beginning by the end of the year, Air Liquide’s application withdrawal was encouraged by Matagorda County Economic Development Corporation Executive Director Mike Ferdinand.
“I recommend that Air Liquide voluntarily withdraw its current application,” he said.
“We greatly value Air Liquide’s continued investment in our community and appreciate the economic benefits this project will bring. This recommendation is intended solely to ensure that the commissioner’s Court receives complete, accurate, and legally supportable information before considering any request for tax incentives.”
Oxea echoed news of Air Liquide’s investment with its own Final Investment Decision (FID) press release.
“The investment will expand OXEA’s core OXO technologies, increasing Propionaldehyde capacity, fully enabling Propanol and Butanol capacities, key intermediates serving growing demand across OXEA's global customer base,” reads Oxea’s July 9 press release.
“It will also unlock feedstock availability for its Carboxylic Acids portfolio and position the site for future growth beyond targeted expansion capacities. Under the agreement, Air Liquide will design, build, and operate a new, purpose-built on-site syngas unit at OXEA's Bay City facility, with full project completion expected by the end of 2028.”
The unit is predicted to help the Oxea facility reduce overall carbon emissions and support a more environmentally sustainable operation.
“This investment demonstrates our shareholders' confidence in our strategy and our unwavering commitment to our customers,” said OXEA CEO Michael McHenry in the press release.
“We are building a world-class supply platform at Bay City that will serve our markets reliably for decades to come. We are not just expanding capacity; we are strengthening the foundation for OXEA's long-term global leadership in oxo chemicals, and further establishing Bay City as a premier industrial park attracting future investment, strategic partnerships, and economic development for the region.”
For more Commissioners Court news, check out Thursday's July 30 edition.