LANXESS speeds up bromine, brine production
LANXESS, a global chemical company with several plants in El Dorado, is stepping up their production of bromine and brine, for which the company is already a global supplier of.
Company officials responded to emailed questions about the corporation, explaining that LANXESS is investing in that sector locally, with the recent addition of four new brine supply wells.
Bromine and brine are used in shale oil and gas production. This is significant in the United States, where hydraulic fracturing — fracking — is accountable for two-thirds of the nation’s natural gas production and about half of crude oil production, according to the U.S. Energy Information Administration.
Prior to the widespread use of fracking, U.S. oil and gas production lagged behind other countries. Since fracking became commonplace around 2009, net imports of oil to the U.S. have declined after 30 years of rising steadily.
However, the country has found itself in troubled waters recently due to an oil price war between the U.S., Russia and Saudi Arabia, the latter two of whom are banking on traditional crude oil production to win out over U.S. shale oil production, which is made possible with fracking.
As Russia and Saudi Arabia drive the price per barrel down, U.S. producers have seen a decrease in their market share and stock prices have declined dramatically in the past month.
However, LANXESS has found other uses for their brine and bromine production. Standard Lithium recently launched a pilot plant at the LANXESS South plant in Smackover that is using an experimental technology to extract lithium from waste tail brine that is a product of LANXESS’s bromine production.
“Once this is up and running, after a couple of months, we’ll be able to have substantive discussions with LANXESS,” Standard Lithium President and Chief Executive Officer Andy Robinson said in a December interview with the News-Times. “At that point … that’s the trigger to then sign the [joint venture] agreement, so an actual separate joint venture company where we’re both part of it. Then we’ll move that project along. We’ll walk before we run.”
Robinson said in December that the pilot plant alone can produce 21,000 tons of lithium carbonate a year and potentially more as the new technology is developed further. Lithium carbonate is used to make lithium and lithium-ion batteries.
LANXESS officials said the bromine produced locally is also used in flame retardants, chemical reaction intermediates and pesticides. The company acquired a Brazilian biocide company earlier this year.
The novel coronavirus pandemic has affected local operations to an extent, but officials said they are being diligent to keep workers safe and supply lines open. However, the company could take a financial hit of 50€ to 100€ million, officials said.
“We always appreciate the help of our local and state authorities, but particularly during this time,” officials said in an email. “We will continue to work with our local government to align with their requests so we can safely continue with our operations. Gov. Hutchinson has done an excellent job in keeping residents, employers and businesses across the state informed throughout this situation and we appreciate his leadership.”
Gov. Hutchinson noted in a press conference last week that LANXESS’s measures to keep workers safe during the coronavirus pandemic are ones other companies could look to as an example.
“We always appreciate the help of our local and state authorities, but particularly during this time.”