Exactly What The EU Feared; Exactly Why They Funded "Leave It In The Ground"; Exactly Why They Feared US Shale -- June 15, 2022

Updates

Later, 2:33 p.m. CT: from a reader who really, really understands energy, and the business climate on the East coast:

Your post on Lego locating in Virginia got me curious. 

Turns out, apparently, that the plastic pellets arrive at the Lego plants and are then molded into the desired pieces. 

So, it would seem to be in Lego's interest to be near 'cheap' plastic feedstock rather than the raw gas itself. 

The Shell cracker plant - just north of Pittsburgh on the Ohio river, is due to start operations in a few weeks. 

The plastic feedstock produced will be amongst the cheapest in the world, literally, as unfathomable amounts of ethane are produced all around that region. 

Down the road, there could be as many as three or more crackers ultimately  constructed up there if the politics and economics are favorable.

Original Post 

It doesn't take a degree in rocket science to connect the dots. 

Suggesting they will use solar power to power this plant is incredibly disingenuous. If that is true, why aren't building in Europe? From CNBC, it's all about natural gas allowing them to run three shifts:

• The factory in Chesterfield County, Virginia, will be the Danish company’s second in North America and seventh worldwide.
• The factory will be powered by renewable energy produced at an onsite solar park.
• The 160,000-square-meter factory is scheduled to be operational in the second half of 2025 and will employ more than 1,760 people.

And why Virginia? Texas would have been a much better location.

But this is the real story.

What's the feedstock used for plastic Lego bricks?

Yes, natural gas.

Which state has more natural gas? Virginia or Texas. 

Which state has less expensive natural gas? Virginia or Texas?

Which state has a more favorable tax rate? Virginia or Texas? 

Which state is more centrally located in the western hemisphere?

What was Lego thinking? 

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ISO NE

The entire region is 6th decile or worse.

Far west Massachusetts at 7th decile. 

Link here.