Mitsubishi Chemical Corp.’s proposed Ascension Parish facility is a losing bet, according to an analysis by an energy think tank

A proposed 350,000-ton methyl methacrylate production facility in Ascension Parish has been called a “bad bet” in a new report from an energy think tank.

The Institute of Energy Economics and Financial Analysis, an Ohio-based nonprofit that researches issues related to energy markets, trends and policy, released the report on the proposed Mitsubishi Chemical Corp. site on July 22.

According to a December 2020 press release, then-Governor John Bel Edwards originally announced the potential project when the company was studying the feasibility of building the complex in Geismar along the Hwy. 30 industrial corridor.

“The state of Louisiana has offered tax breaks and lenient environmental regulations to support Mitsubishi,” IEEFA Director of Financial Analysis Tom Sanzillo said in a new press release. “This is a mistake. The company faces an insurmountable set of risks.”

Sanzillo’s report states that there is already an oversupply of MMA installations in the United States and abroad.

“Mitsubishi is betting that low gas prices and government subsidies will make this plant profitable, while ignoring the larger financial landscape,” he said in the release. “Our report shows that global oversupply of MMA, the emergence of competing technologies, disrupted trade lines, failed similar projects and public opposition are negating the potential benefits they are counting on.”

In the initial announcement, the governor emphasized the economic impact of the investment, expecting hundreds of new direct and indirect jobs for the Baton Rouge region and surrounding areas.

Since its announcement, some parish residents and environmentalists have opposed the proposed $1 billion project over the years, citing concerns about pollution.

According to a public notice from the Louisiana Department of Environmental Quality, the company has applied for a permit to emit hundreds of tons of pollutants annually.

“It’s a big gamble,” Sanzillo wrote in the report’s summary. “The company appears to know, having missed two construction start deadlines and currently outpacing its most recent commitment to start construction in late Q2 2024.”

The report also noted that “little attention was paid to the potential risks” when Louisiana leaders welcomed the initial announcement.

“If Mitsubishi continues with the project, the company will likely face negative financial consequences,” Sanzillo said.

He added that citizens could lose “the right to plan their own communities, clean air, land and water, and tax dollars.”

“What the people of Louisiana are giving up is largely irreversible,” he wrote.

Ashley Gaignard of Rural Roots Louisiana, a local environmental justice organization, and Robert Taylor of Concerned Citizens of St. John spoke out against the project in the press release.

“Our leaders are taking actions that are shameful,” Gaignard said in the release. “These investments have no success story as long as small neighborhoods like mine are left behind.”