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Aither Chemical, Bayer ink deal to measure interest in catalytic ethane cracker

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Aither Chemicals LLC announced June 21 it signed a memorandum of understanding with Bayer MaterialScience to launch an "Open Season" for ethylene from a potential catalytic ethane cracker in the Kanawha Valley.

According to a news release from Aither, the agreement includes a non-binding "Open Season" to determine the market interest for the chemicals and plastics that would be produced by such a cracker. This could include ethylene, acetic acid, carbon dioxide, and carbon monoxide for sale at competitive market pricing or use in making downstream derivatives and other products such as ethylene oxide.

As part of the agreement Bayer would assist in the effort to evaluate third party interest in the chemicals stated above. Several ethane suppliers have expressed interest in supplying ethane to the project.  

The Open Season will run from June 22 through July 20. After the Open Season, Aither Chemicals said it will evaluate the market's response and decide on next steps by Aug. 31. The Open Season process is commonly used in the midstream energy business to determine market interest in new business opportunities.  

If Aither Chemicals decides to proceed with the proposed catalytic ethane cracker, production could begin as early 2015, the company said in the news release. 

"The Memorandum of Understanding is a first step towards building a catalytic ethane cracker in the Kanawha Valley region and we are optimistic that the market will respond," said Leonard Dolhert, CEO of Aither Chemicals.