KINGSPORT, Tenn. (AP) — Coatings, plastics and chemical maker Eastman Chemical Co. said Friday it and a joint investment venture of D.E. Shaw & Co. L.P. and Goldman, Sachs & Co. plan to develop a $1.6 billion facility to produce industrial gas in Texas.
Eastman Chemical and the venture, Green Rock Energy L.L.C., plan to split the cost of the plant, which will use petroleum coke as the main ingredient to make hydrogen, methanol and ammonia.
The plant will be located in Beaumont, Texas, and is expected to be operational by 2011.
''This project combines Green Rock's financial resources and development capabilities with more than 20 years of Eastman's technology and operational leadership in industrial gasification,'' Brian Ferguson, Eastman chairman and chief executive, said in a statement.
Air Products and Chemicals Inc. has tentatively agreed to buy hydrogen from the facility on a long-term basis. Fluor Corp. is providing engineering design services, while General Electric Co.'s GE Energy has licensed gasification technology for the project.
Last month, Eastman Chemical exercised an option to buy Terra Industries Inc.'s methanol and ammonia production facilities in Beaumont for an undisclosed amount.