Work on a 10.2-mile natural gas pipeline to service Tate
& Lyle is underway after the U.S. Federal Energy
Regulatory Commission recently gave approval for the
project.
Chris Olsen, Tate & Lyle vice president of community and government affairs, said FERC go-ahead means the local manufacturing plant can make the conversion from coal-fired boilers to natural gas.
The pipeline will fuel Tate & Lyle’s $66 million
cogenerational plant that is expected to
substantially reduce air emissions. The company held
a community update last week at the Carmichael Inn
in Loudon.
“The catalyst for this community update was some
good news we received from the Federal Energy
Regulatory Commission a couple of weeks ago,” Olsen
said. “We received the regulatory approval for the
pipeline, and so without the approval this project
could not go forward. So, we thought now that
approval for the pipeline has been received, we
thought it’d be a good time to update the community
to let them know that the pipeline construction will
start. ... Really reinforce what this project means
for both the Loudon facility and the area.”
Tate & Lyle Plant Manager Gerry Schlueter said
switching to natural gas will reduce sulfur dioxide
levels by 85 percent. The plant’s overall carbon
footprint will also be decreased by 43 percent.
“There will be a significant reduction in our
overall emissions, and ... but I think the bottom
line is there’s a significant impact on the plant’s
overall emissions as a result of conversion to
natural gas,” Olsen said. “That will not only
improve our plant’s performance, but it also has a
positive impact on the area’s overall emissions
level and overall environment to open up more
opportunities for economic development.
“... If we reduce our emissions, that opens up other
opportunities for new businesses to grow,” he added.
“Similarly on the pipeline itself, bringing in
additional natural gas capacity will be another
strong positive for local economic development. With
the abundance of natural gas at a low price, this
will allow the area to compete for more industrial
development.”
Olsen said the project will also improve the Loudon
plant’s competitiveness with other Tate & Lyle
facilities.
According to notice of intent sent out in July, the
approved route — titled G-1 — will start in Monroe
County and go up the original pathway to milepost
1.5, go underneath Highway 72 heading east and then
run parallel to milepost 3.1, where it will
eventually be linked to the existing Loudon-Lenoir
City lateral pipeline. The route will impact 36.9
acres.
“Literally construction’s beginning right now,” Bill
Wickman, East Tennessee Natural Gas director of
business development, said. “Basically, once the
FERC gives approval, then we accept the approval and
then provide them with what’s known as
implementation planning and then they give us
clearance to construct. So clearance to construct is
the key we’ve got and quite literally we’ve been
meeting contractors and they’re starting the
construction process right now. ... We are expecting
it to be placed into service for Tate & Lyle Sept.
1.”
East Tennessee Natural Gas LLC is owned by Spectra
Energy, a company based in Houston, Texas. In a
previous interview, Spectra Energy representative
Devin Hotzel said construction would take six months
to complete.
Loudon Mayor Jim Greenway said Tate & Lyle’s plans
to invest into the local plant will benefit the
community.
“Any time they make this kind of investment in the
future of their plant here, that promises to be some
really good (news) ... for Loudon city and the
county,” Greenway said. “I mean it’s — they’re
looking to be here in the future.”
Loudon County Commissioner David Meers said he hopes
the plant will offer more employment opportunities.
“Hopefully the economic impact on it will be great,
providing more jobs,” he said.