ICL touts switch to gas

Tel Aviv–Israel Chemicals Ltd. (ICL) has initiated the flow of natural gas to its power plant located at Sdom in Israel’s Negev Desert. The facility generates the majority of the electrical power required to run ICL’s manufacturing facilities in the Negev region. Over the course of the next several months, after the gas pipeline is connected to ICL’s facilities in Mishor Rotem and Ramat Hovav, ICL will convert all of its Negev manufacturing facilities to the use of natural gas. The gas line will be operated by Israel Natural Gas Lines, Israel’s national gas company. ICL estimates that the conversion to natural gas will reduce its particle emissions by 25 percent, including a 65-70 percent reduction in the company’s SOX emissions, leading to a substantial improvement in air quality around its operations and a dramatic improvement of the company’s carbon footprint. The use of natural gas will also significantly reduce the company’s energy costs and its dependence on heavy fuels and liquid gas, while lowering the operating expenses of its production facilities. The upgrade of ICL’s manufacturing facilities from fuel oil to natural gas is a key step in the company’s effort to implement “green” operating processes, a strategy undertaken as part of ICL’s focus on reducing the environmental impact of its operations and improving operating efficiency. The conversion has been made possible by the completion of a gas line to the Negev, the company’s receipt of the required governmental permits, and conversion of its facilities to operate on natural gas. In March 2008, ICL entered into a long-term agreement with Yam Tatis Partners to purchase approximately two billion cubic meters of natural gas through 2015.