What Happened to Domino Sugar Chalmette Refinery?

The Chalmette Refinery, specifically the Domino Sugar Chalmette Refinery, boasts a rich history spanning over a century, establishing itself as the largest cane sugar refinery in the Western Hemisphere. Construction for the facility began in August 1905, with operations commencing on May 17, 1909. Over the decades, it has been a cornerstone of the St. Bernard Parish economy, adapting to various challenges and technological advancements. The refinery, owned by American Sugar Refining, Inc. (ASR Group), has consistently processed millions of pounds of sugar daily, sourced primarily from Louisiana sugarcane.

Throughout its history, the refinery has faced significant adversities, including a fire that destroyed its wharf and parts of a warehouse in 1909, and a devastating explosion in 1965 that resulted in one fatality and numerous injuries. More recently, the refinery demonstrated remarkable resilience after being severely impacted by Hurricane Katrina in August 2005, managing to restart operations within 98 days despite extensive flooding and damage. These events underscore the facility's enduring importance and the dedication of its workforce.

A significant development as of May 2026 is the commencement of a monumental $785 million modernization project by American Sugar Refining, Inc. The initial phase, a $200 million investment, involves the construction of a new, state-of-the-art filtration building. This project, which broke ground on May 5, 2026, is designed to replace aging equipment, introduce modernized refining capabilities, and significantly improve operational reliability. The new facility will also incorporate designs to meet modern flood codes, enhancing protection against potential weather events and safeguarding long-term production capabilities.

The modernization is driven by a commitment to meet future demand, improve efficiency, and advance environmental sustainability goals by reducing water and energy consumption. The project is expected to retain 500 current jobs and create 15 new direct jobs, along with an estimated 37 indirect jobs, reinforcing its role as a major employer in the region. Louisiana Economic Development has supported this initiative with an incentives package, including an 80% property tax abatement over 10 years. Commercial operations for the first phase are anticipated to begin in 2028.

It is important to distinguish the Domino Sugar Chalmette Refinery from the PBF Energy Chalmette Refinery, a separate petroleum refining facility also located in Chalmette, Louisiana. The PBF Energy refinery, acquired from ExxonMobil and PDVSA in 2015, has a crude oil processing capacity of approximately 185,000 barrels per day. PBF Energy has invested in converting an idled hydrocracker unit at this site to produce renewable diesel, with a $600 million capital investment announced in 2021 and an estimated completion in 2023. For late 2026, PBF Energy has planned turnaround work at this petroleum refinery, focusing on the crude unit and coker for 50-55 days. This petroleum refinery has also faced environmental scrutiny, including reports of excessive benzene emissions in 2020. While both facilities are significant industrial presences in Chalmette, the recent groundbreaking for the sugar refinery's modernization marks its most current and impactful development.