America needs political and business leaders to cooperate to deliver energy that sustainably produces vital goods and services, because neither can do what needs to be done alone. The newly operational Shell Polymers Monaca facility is an example of what this cooperation looks like.
Shell’s world-class manufacturing facility required an investment of more than $6 billion, and, at its construction peak, employed more than 6,500 workers. According to an analysis conducted by Robert Morris University, ongoing operations will require 600 full-time workers, many of them locally trained; support more than 11,000 jobs statewide; and increase economic activity in the state by nearly $82 billion.
The facility uses locally produced natural gas liquids to make more than 1.6 million tons of polyethylene pellets, which are used in a variety of automotive, industrial, utility, and consumer goods. Marcellus Shale natural gas has the lowest carbon footprint of any basin in the world, according to the Clean Air Task Force, making it an easy choice for companies wanting to reduce emissions.
The event included a discussion between Governor Tom Wolf and his predecessor Tom Corbett on how support for this facility bridged the administrations of governors from two different parties. At a time of political partisanship, this display of unity was a reminder that we should all work toward a sustainable industrial renaissance in the region and across the United States. The discussion also opened the door for Gov.-Elect Josh Shapiro to make good on his campaign pledge to secure Pennsylvania as an anchor of energy production and 21st century manufacturing.
Pennsylvania and Ohio, which share the Marcellus Shale and have also embraced competitive power markets, are the top two states for emissions reduction, according to federal data. It should come as no surprise that these resources attracted a facility like the polymers plant, whose economic impacts are massive.
While Pennsylvania has helped the United States be a global leader in reducing emissions from the power generation sector, we can also be a leader in sustainable production of heavy industry like steel and glass. As part of that vision, Shell’s facility has been identified as an anchor of a proposed hydrogen hub.
Available funding from the recently enacted federal bipartisan infrastructure law, paired with the region’s significant natural gas reserves, makes southwestern Pennsylvania ripe to host a hydrogen hub and help our nation be the world's lowest-cost producer of hydrogen and ammonia, the key ingredient to fertilizers necessary to meet global food demands.
TeamPA recently partnered with Shell, Equinor, and U.S. Steel to file a concept paper with the U.S. Department of Energy. That’s the initial step for securing federal support for infrastructure, like a hydrogen hub, that keeps carbon dioxide out of the atmosphere and produces clean-burning hydrogen for heavy industry.
Hydrogen and ammonia costs have recently skyrocketed because of Europe’s energy crisis and Russia being sanctioned out of energy markets. Pennsylvania can rise to meet this global challenge — provided we get the policy right. This includes providing regulatory frameworks for carbon capture and continued support for the development, transportation, and use of our region’s natural gas. Lastly, policymakers must empower competition in our electricity markets and ensure the reliable dispatch of power.
This approach has strong, bipartisan support from the business community, state and federal leaders, the building trades, environmental advocates, and higher education; and will allow us to achieve our economic and environmental goals in a balanced manner.
With many new faces coming to Harrisburg next year, putting policies in place to advance a transformational project like the hydrogen hub would cement the next chapter in Pennsylvania’s storied leadership in energy and manufacturing.
Kevin Sunday is director of government affairs with the Pennsylvania Chamber of Business and Industry.
First Published: December 19, 2022, 5:00 a.m.
