The U.S. Department of Energy has eliminated funding for Eastman Chemical Co.’s planned $1.2 billion plastics recycling facility in Longview, Texas, as part of broader cuts to clean-energy grants. The methanolysis plant, scheduled to open in 2028, was among 24 projects that lost funding after DOE determined they failed to meet economic viability standards. Energy Secretary Chris Wright stated the terminated projects wouldn’t deliver sufficient returns on taxpayer investments.
Advanced Recycling Technology Faces Setback
Eastman’s proposed facility would have employed molecular recycling technology similar to its existing Kingsport, Tennessee operation – using high temperatures to break down hard-to-recycle plastics into basic chemical components. This thermal chemical process represents an emerging approach being adopted by several major chemical manufacturers to address plastic waste challenges.
DOE Prioritizes Fiscal Responsibility
The funding cancellation followed a comprehensive financial review by the Office of Clean Energy Demonstrations. In its announcement, DOE emphasized the need for projects that both advance American energy needs and demonstrate clear economic feasibility. The $375 million grant represented nearly one-third of the total projected cost for Eastman’s Texas recycling complex.
Industry Continues Push for Chemical Recycling
Despite the setback, Eastman and other chemical companies remain committed to developing advanced recycling solutions. The technology allows manufacturers to repurpose plastic waste that traditional mechanical recycling cannot process, creating circular material flows for packaging and other applications. Industry analysts suggest private funding may now need to fill the gap left by withdrawn government support.
Future of Circular Economy Projects
The DOE decision raises questions about funding pathways for innovative recycling infrastructure. While the Biden administration continues supporting clean energy initiatives, this move indicates stricter financial scrutiny for large-scale demonstration projects. Eastman has not yet announced whether it will proceed with the Longview facility without federal assistance.
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