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 $375 million in Bipartisan Infrastructure Law and Inflation Reduction Act funding as part of the Industrial Demonstrations Program (IDP). The DOE announcement led to Eastman announcing the intent to build a second U.S. molecular recycling facility at its location in Longview, Texas. Strategic Development Group assisted Eastman in this important Circular Economy project by evaluating 95 sites in 22 states across the US.
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.
Incentives from the U.S. Department of Energy and the State of Texas
The DOE selected the company 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 deploying 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 industrywide change to a low-carbon future. Also, as part of the DOE award, 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.
Eastman also obtained significant state and local tax incentives in support of the project totaling approximately $70 million.
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 molecular building blocks and reassembled to become virgin-quality material without compromising performance. Eastman enables the potentially infinite use of materials by producing these valuable molecules 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.
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 $9.2 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com.
About SDG
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