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Eastman’s molecular recycling project in Texas

The company was selected by the U.S. Department of Energy's Office of Clean Energy Demonstrations (OCED) to receive up to a $375 million investment for its second U.S. molecular recycling project.

Outdoor Texas Eastman sign

About the Office of Clean Energy Demonstrations

The U.S. Department of Energy's Office of Clean Energy Demonstrations (OCED) was established to accelerate clean energy technologies and fill a critical innovation gap on the path to achieving our nation's climate goals of net zero emissions by 2050. OCED's mission is to deliver clean energy demonstration projects at scale in partnership with the private sector to accelerate deployment, market adoption, and the equitable transition to a decarbonized energy system. Visit energy.gov/oced to learn more.

An Eastman team member observes shredded plastic on a conveyor belt
Eastman’s second U.S. molecular recycling project has been selected by OCED to begin award negotiations for up to $375 million in Bipartisan Infrastructure Law and Inflation Reduction Act funding as part of the Industrial Demonstrations Program (IDP). This led to Eastman announcing the intent to build a second U.S. molecular recycling facility at its location in Longview, Texas.

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.

Incentives from the OCED and the state of Texas

The OCED selected Eastman to accelerate the demonstration of industry-leading, low-carbon-intensity recycled PET with this project. Reaching a collaborative agreement with the OCED expands the project to include thermal heat batteries and on-site solar power. This, combined with Eastman’s next-generation methanolysis technology, achieves a step-change improvement in decarbonizing PET production. This results in recycled PET with greater than 70% reduced carbon emissions compared to fossil virgin production and approximately 90% reduced carbon emissions when including avoided emissions.

Bottle sortation prior to processing of plastic
Volunteers pack grocery bags at a community center

Community Benefits Plan

As part of the award from OCED, the company has developed a Community Benefits Plan of $20 million. This investment will support:
  • Workforce training and development
  • Apprenticeship expansion
  • Community center's renovation

About Eastman

  • Global specialty materials company that produces a broad range of products, headquartered in Kingsport, Tennessee
  • Employs approximately 14,000 people around the world and serves customers in more than 100 countries
  • Operates one of the world’s largest material-to-material molecular recycling facilities with plans to invest approximately $2.25B in three facilities
A group of Eastman employees pose in front of a statue of a molecule held by a hand
Shredded green, blue and clear plastic

Molecular recycling technology

  • Construction of a first-of-its-kind plastic-to-plastic molecular recycling facility integrated with low-carbon renewable energy
  • Capable of taking waste streams that are typically landfilled or incinerated and turning them into virgin-quality polyethylene terephthalate (PET)
  • Approximately 100,000 MT of output capacity
  • Greater than 90% material yield through the recycling process

Value and impacts

  • Molecularly recycled PET will reduce the consumption of fossil fuels, keep plastic waste out of landfills and the environment, and deliver on brand owner commitments to significantly reduce their carbon footprints.
  • Through the deployment of novel thermal heat batteries and on-site solar, the planned project will demonstrate near-zero-carbon process heat at an industrial scale.
  • With PepsiCo as an early adopter committed to significant offtake from the plant, the project will catalyze the decarbonization of the consumer packaging industry.
A person removes a discarded plastic bottle from a recycling bin

Expected outcomes

Apprenticeship

Expand state-accredited apprenticeship program

Diversity

Launch diversity, equity, inclusion and accessibility (DEIA) programming to strengthen inclusive leadership capabilities of diverse teams

Partnership

Broaden partnerships with women, minority and/or veteran-owned businesses

Sustainability

Minimize environmental impact through on-site solar and renewable heat generation via thermal batteries and next-generation molecular recycling

Community

Activate Branches of Hope community vision, a new nonprofit for outreach and workforce development

Collaboration

Enable two-way communication on jobs, plastic waste diversion, and environmental impact mitigation

 

Frequently asked questions

The Longview site was selected 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 on-site renewable energy. We also know the talent pool in this area is strong, and we have incredibly talented team members already working at the site who will be instrumental in this project. 

The investment includes operations that will prepare mixed plastic waste for processing, Eastman’s next-generation methanolysis unit to depolymerize waste, and a polymer facility to create virgin-quality materials for packaging and textiles. 

With the expanded scope of the project to include thermal batteries and solar energy, we currently estimate the project to be approximately $1.2B before incentives. We are still early in the engineering process and working through significant inflation in capital costs.   

We have targeted mechanical completion in the 2026/2027 time frame. However, we will expand the scope of the project to include thermal batteries and solar energy. We will work through the details and then refine the timeline to provide an update when appropriate. 

We will have the capacity to recycle approximately 110,000 metric tons of hard-to-recycle plastic waste. The polymer production will be greater than this amount and dependent on the product mix.

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.

The company was selected by the OCED for award negotiations of up to $375 million in investment to accelerate the demonstration of industry-leading, low-carbon-intensity PET with this project. Reaching a collaborative agreement with the OCED enables expansion of the project scope to include the deployment of thermal heat batteries, on-site solar and our next-generation technology. This scope achieves a step change improvement in decarbonizing PET production.

Through the Branches of Hope initiative, Eastman plans to support the formalization of Branches of Hope as a nonprofit organization with its own executive and program director. The initiative will also include the remediation and renovation of the Paula Martin Jones Recreation Center to create a sustainable access point for centralized community services provided by Branches of Hope partners.

Eastman’s planned project in Longview is aligned with the OCED’s goal of demonstrating what is possible and catalyzing industry-wide change to a low-carbon future. Some key differentiators were the 1) magnitude of decarbonization and the level of technology maturity, 2) strength of our commercial strategy and agreements, and 3) community engagement and benefit plans.

We’re confident we will be able to reach a contractual agreement with the OCED. However, specific details of that agreement must be worked out between Eastman and the department. We expect to have a final contract signed sometime this summer and will continue to make progress on the project in the interim. The OCED’s goal is to get all 33 awardees under contract. In other words, no more narrowing of the field is planned.

An Eastman employee in a hard hat

Vendor interest

 

 

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