EPA dashes ethyl`s hopes for MMT
Up until the Environmental Protection Agency (EPA; Washington) decided to deny Ethyl`s (Richmond, VA) petition to sell manganese-based gasoline additive MMT, many on Wall Street were bullish. Bets were that MMT sales could create an up to $200 million/year sales windfall for Ethyl with $60 million/year income, and push its near $26/share price up by at least 50 cts. But EPA ruled January 8 against MMT in unleaded gas due to its potential to increase hydrocarbon emissions. What kept analysts hoping is that octane enhancer MMT`s environmental impacts are mixed. An Ethyl spokesman says that MMT cut tailpipe emissions of nitrogen oxide by 20% and carbon monoxide by 7%. Ethyl also points out that MMT could save as much as 85,000 barrels/day of imported oil because of lower energy requirements in blending. And the product has sold for 13 years in Canada with no reported ill health effects. But, points out Smith, Barney (New York) analyst James Wilbur, Canada is not the congested Los Angeles basin, where the unknown effects of small amounts of heavy metal manganese would show up a lot faster if every car burnt MMT. For now, the financial effect of the decision is negligible, although at some point Ethyl may have to take a write-down on its Orangeburg, NC plant.
- OSTI ID:
- 486363
- Journal Information:
- Chemical Week, Vol. 150, Issue 2; Other Information: PBD: 15 Jan 1992
- Country of Publication:
- United States
- Language:
- English
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