When the U.S. Department of Energy announced plans to cut $3.7 billion in clean-energy grants last week, an Eastman Chemical Co. recycling facility slated to open in 2028 was among the casualties. 

Energy Secretary Chris Wright announced the termination of 24 awards from the Office of Clean Energy Demonstrations, including Eastman's planned Longview, Texas, methanolysis plant. According to the Longview News-Journal, the plant was set to receive a $375 million grant to build a nearly $1.2 billion plastics recycling facility.

DOE stated that after a thorough financial review, these projects "failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars."

The Longview plant would process hard-to-recycle plastic waste, similar to a facility currently operating in Kingsport, Tennessee. 

Eastman is among a growing number of chemical manufacturers employing technologies that use high temperatures to break discarded plastics into their molecular building blocks. 

Eastman’s Chemical Recycling Strategy

This technology, which Eastman has divided into carbon renewal and polyester renewal segments, is fast becoming a major growth area for the company. In the company's 2024 annual report, CEO Mark Costa cited the Kingsport methanolysis plant as “a key growth driver.” Costa said the Kingsport methanolysis facility is expected to contribute $75 million to $100 million in EBITDA growth in 2025.

But the technology presents unique operational challenges for manufacturers. For instance, high temperatures and pressures are needed to convert the polyester into feedstocks, such as dimethyl terephthalate and ethylene glycol.

Mike Strickler, an associate electrical engineer with Eastman, discussed the company's automation strategy to address these challenges during the 2025 Emerson Exchange conference in San Antonio in mid-May.