The Elevance solution, part 1: product will take on many forms

Published 12:01 am Sunday, June 12, 2011

NATCHEZ — When Elevance Renewable Sciences begins Adams County operations sometime in the next five years, the products leaving the port facility headed for plants around the world will be in the form of liquids, waxes, beads and more.

Those products will be sold to other manufacturing companies and may show up in your detergent, motor oil or make-up.

And the Adams County residents who work at the plant to create the products and support those who do will include plant operators, experienced maintenance workers, craftsmen — such as welders — managers, engineers, human resources experts and accountants.

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The facility at the Adams County Port, formerly Delta BioFuels, now owned by Elevance, will undergo considerable changes, but emissions from the fully operational plant won’t be anything locals notice, Natchez Inc. Executive Director Chandler Russ said.

The product

Using natural oils, such as soy oil, palm oil or canola oil, Elevance creates chemicals that serve as ingredients in everyday products.

Personal care products, (such as make-up), lubricants (such as motor oil), detergents, fuels and other chemical markets can use the variety of chemicals.

Elevance’s chemicals benefit the manufacturers of those products by increasing performance.

Elevance CEO K’Lynne Johnson said the patented “olefin metathesis technology” the company uses makes the chemicals high performing.

For example, as Gov. Haley Barbour explained when he announced the company’s commitment to Adams County last week, Elevance ingredients make the scent of scented candles last longer.

Johnson said industrial and automotive lubricants, like motor oil, have a higher efficiency when made with the Elevance chemicals.

She said detergents with the high performing chemicals do a better job cleaning with a smaller amount of detergent or in cold water.

“(The chemicals allow) use of less product, (which) helps consumers and manufacturers economically and puts out less waste materials,” Johnson said.

While new Adams County plant will be the company’s first continuously running facility in North America, Elevance has been running manufacturing “toll and contract” operations in Texas, the Midwest and in the South on an on-demand basis, Johnson said.

An Elevance facility in Indonesia similar to the one planned for Adams County, but slightly smaller in scale, is scheduled for completion by the end of this year.

The company already has several partners who buy their chemicals. For example, Victoria’s Secret uses the company’s chemicals for hair and skin care products.

Elevance has a joint development agreement with Dow Corning for personal care products as well.

The plant in Adams County will be able to produce up to six different chemical products. Products will then be sold to other companies, becoming part of a $500 billion specialty chemical market, the company’s website says.

And because Elevance will be able to use a variety of raw materials in its process, the company is less affected by the commodity price fluctuations, reducing the risk of financial burdens, Russ said. If soy oil prices increase, for example, Elevance can simply begin using more palm oil, he said.

Elevance is the first company to make chemicals formerly derived from petroleum or natural gas out of renewable resources, Johnson said. The company got its start when it was awarded a grant from the U.S. Department of Energy in 2004.

“We are the only company that is able to deliver this biorefinery. That’s what makes (the project) really fun and exciting for us and Mississippi as well — to be part of a novel breakthrough technology with a smaller environmental footprint,” Johnson said.

A biorefinery is a facility that uses renewable feedstocks to produce multiple products. The biorefinery concept is analogous to today’s petroleum refinery, which produce multiple fuels and products from petroleum, the company’s website said.

The facility

The first $100-million construction phase should commence sometime between October and December of this year.

The second $125-million construction phase will start sometime after the first phase, but not necessarily after phase one is completed. Both phases should be complete in five years.

“Phase two is an expansion,” Johnson said. “(The company will be) adding greater volumes of the same (products) and adding new products.”

Johnson said engineering and design for the Adams County facility started a month ago on a limited basis. After negotiations were cemented last week, more detailed planning has started since engineers now have direct access to the former Delta Biofuels site.

Elevance has committed to invest $225 million in Adams County.

Port Director Anthony Hauer said a vapor recovery system at the port will prevent Elevance from producing any emissions.

“There shouldn’t be any emissions (or) odor at all,” Hauer said.

The vapor recovery system at the port’s liquid loading dock will trap any emissions that might build up in the pipelines that could possibly escape, he said.

The jobs

Elevance has committed to bring 165 permanent jobs to Natchez, and expects to create 300 construction jobs.

Johnson said 104 full-time employees will be hired for phase one, and phase one operations will start before phase two is completed.

The remaining 61 employees will be hired for the second phase.

Company representatives have been in contact with local technical colleges and some state universities to discuss possibilities of training programs that can feed into employment positions with Elevance.

“Some of (the schools) already have programs largely relevant,” Johnson said.

The company has not set a timeline for hiring, but those interested in working at Elevance can visit the website at www.elevance.com to find contact information and instructions on when and how to apply.

“I continue to be very excited with (the company’s) partnership with Mississippi and look forward within the next (phase) of planning work to share more details of the specifics,” Johnson said.