In a March 23rd article, the Institute for Energy Economics and Financial Analysis (IEEFA) said that Formosa’s new plastic plant being built in “Cancer Alley” in St. James Parish, would not be financially sustainable, writing, “IEEFA finds that the project will begin operations at a time of market oversupply, lower petrochemical prices, strong competition for market share, restrictive trade policies, environmental regulatory challenges, judicial findings of historic racial discrimination, popular opposition, rising construction costs, and a weakened bond rating. The report urges the cancellation of ‘this ill-advised project, which should be abandoned in light of its weak fundamentals.’”
Among those reasons the Formosa plant seems unviable, they write, that the plant, which was proposed as a $9.7 billion dollar project has already now ballooned to $12 billion. Along with that, they also add that with the likelihood of recycling increasing that the, “Long-term demand for virgin plastic production will likely decline as recycling and bans on single-use plastic increase.”
Read the full story here: https://www.bigeasymagazine.com/2021/03/26/ieefa-says-formosa-plastics-plant-not-financially-viable/
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