Eastman Selected by U.S. Department of Energy To Receive up to $375 Million Investment for Its Second U.S. Molecular Recycling Project
- Eastman secures up to $375 million in funding from the Department of Energy for its second U.S. molecular recycling facility in Longview, Texas.
- The investment is expected to create over 200 full-time jobs and 1,000 temporary construction jobs, contributing to the local community.
- Eastman's advanced technology targets a reduction of over 70% in carbon emissions compared to fossil virgin production, aligning with decarbonization goals.
- The company receives significant state and local tax incentives totaling approximately $70 million to support the project.
- Eastman's circular economy strategy includes the completion of a molecular recycling facility in Kingsport, Tennessee, with plans for further expansion in France.
- None.
Insights
The announcement by Eastman regarding the development of a second U.S. molecular recycling facility, supported by the Department of Energy and the State of Texas, is a significant step in the sustainable materials industry. The investment in Longview, Texas, leverages existing infrastructure, enhancing the economic viability of the project. The facility's capacity to recycle 110,000 metric tonnes of plastic waste annually aligns with global efforts to reduce landfill usage and carbon emissions, addressing a critical environmental challenge.
From an economic standpoint, the creation of over 200 full-time jobs and approximately 1,000 temporary construction jobs contributes positively to the local economy. The state and local tax incentives worth approximately $70 million signify a strong governmental support for sustainable initiatives, which may encourage similar investments in the region. However, the long-term success of the facility will depend on the cost-competitiveness of recycled materials and the adoption rate by manufacturers and consumers.
The integration of Eastman's next-generation methanolysis technology and the deployment of thermal heat batteries and onsite solar power represent technological advancements in the reduction of carbon intensity in PET production. The projected 70 percent reduction in carbon emissions for recycled PET and up to 90 percent when including avoided emissions, is noteworthy when compared to traditional fossil virgin production.
For stakeholders, the anticipated decarbonization of PET production could offer a competitive edge in markets increasingly sensitive to carbon footprints. However, the scalability and reliability of these new technologies in a commercial setting will be critical to monitor. Potential drawbacks include the need for continuous innovation to stay ahead of regulatory requirements and the challenge of maintaining cost efficiency amidst evolving renewable energy markets.
Eastman's strategic choice of Longview for its molecular recycling facility is a testament to the importance of logistical considerations in industrial planning. The access to western and central U.S. feedstock pools ensures a steady supply of raw materials, while on-site renewable energy capabilities demonstrate a commitment to operational sustainability.
Investors should note the implications of Eastman's long-term presence in the region, which may facilitate smoother operations and community integration. The company's track record in Longview suggests operational expertise and established relationships that could mitigate risks associated with new facility developments. However, the dependency on governmental incentives and the evolving regulatory landscape for recycling technologies are factors that could influence the project's financial stability.
Longview, Texas, named as the location of the facility
KINGSPORT, TN / ACCESSWIRE / March 27, 2024 / Eastman (NYSE:EMN) announced significant progress towards its leadership in the circular economy.
- Selected by the Department of Energy as one of 33 companies for award negotiations to support Eastman's second U.S. molecular recycling facility
- Named Longview, Texas, as the location for its facility
- Finalized incentives with the State of Texas to assist with project funding
Eastman's second U.S. molecular recycling project has been selected by the Department of Energy (DOE) to begin award negotiations for up to
Investment in the Longview site
The company selected the Longview site due to synergies with existing infrastructure and operations, favorable energy supply and footprint, and access to western and central U.S. feedstock pools. The location also provides enough space for onsite renewable energy. The investment includes operations that will prepare mixed plastic waste for processing, Eastman's next-generation molecular recycling unit to depolymerize waste, and a polymer facility to create virgin-quality materials for packaging and textiles. The Longview molecular recycling facility will have the capacity to recycle approximately 110,000 metric tonnes of hard-to-recycle plastic waste.
The investment is expected to bring over 200 full-time, high-paying jobs to the Longview community in addition to approximately 1,000 temporary construction jobs during site development and building of the facility. Eastman has operated in the Longview community for over 70 years and currently has over 1,500 team members at the location.
"We are excited to build our second U.S. world-scale molecular recycling facility at our existing site in Texas," said Mark Costa, Board Chair and CEO. "The plant will remove significant waste from the region, enable true circularity and set a new benchmark for decarbonization. We have decades of history successfully operating in Longview, and this will be a great investment for the local community."
Incentives from the U.S. Department of Energy and the State of Texas
The company was selected by the DOE to accelerate the demonstration of industry-leading low-carbon intensity recycled PET with this project. Reaching a collaborative agreement with the DOE enables expanding the project to include the deployment of thermal heat batteries and onsite solar power. This, combined with Eastman's next-generation methanolysis technology, achieves a step-change improvement in decarbonizing PET production resulting in recycled PET with greater than 70 percent reduced carbon emissions compared to fossil virgin production, and approximately 90 percent reduced carbon emissions when including avoided emissions.
Eastman's planned project in Longview is aligned with the DOE's goal of catalyzing industry-wide change to a low-carbon future. Also, as part of the award from the DOE, the company plans to support the renovation of a community center to be used as a hub for community outreach, workforce training and development, and other ongoing needs of its community partners.
"We are honored to be selected by the DOE to help fund this important project," Costa continued. "The commitment helps us to further invest in the local community with a comprehensive community benefits plan. The support of these partners is a testament to our technology and the difference we can make for future generations."
Eastman also obtained significant state and local tax incentives in support of the project totaling approximately
"Texas is where businesses flourish and people prosper," said Texas Governor Greg Abbott. "With our highly skilled workforce, unmatched business climate, and reasonable regulations, it is no surprise businesses from around the globe continue to choose to grow in Texas. This additional facility by Eastman in Longview will bring hundreds of good-paying jobs to hardworking Texans and millions in capital investment to East Texas. I thank the members of the Texas Legislature and local leaders for their tireless work to attract world-class business investments to our great state. Together, we will continue to create a bigger, better Texas for generations to come."
"We also deeply appreciate the support of Governor Abbott and the State of Texas for its continued collaboration as we announce this large investment at our Longview facility," Costa added. ‘We are excited to work with the state and local leaders to continue our legacy in Texas for generations to come."
Eastman's proven polyester renewal technology recycles hard-to-recycle plastic waste bound for landfill or incineration today. The company's technology allows this waste to be broken down into its molecular building blocks and then reassembled to become virgin-quality material without compromising performance. Eastman is enabling the potentially infinite use of materials by keeping these valuable molecules in production, in a material-to-material high-yield loop. Eastman can transform waste plastic into virgin quality food contact polyesters with lower greenhouse gas emissions than traditional methods.
In addition to this newly announced facility in Texas, Eastman has recently completed its first molecular recycling facility in Kingsport, Tennessee, and plans to invest in another location in France. For more on Eastman's circular economy strategy and initiatives, visit www.eastman.eco.
About Eastman
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company's innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2023 revenue of approximately
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