May, 30, 2025 - U.S. Secretary of Energy Chris Wright today announced the termination of 24 awards issued by the Office of Clean Energy Demonstrations (OCED) totaling over $3.7 billion in taxpayer-funded financial assistance. According to the Associated Press, a $375M award to Eastman Chemical for a molecular recycling facility in Longview, Texas is among the canceled projects.

The total cost for the chemical recycling project in Texas is approximately $1.2 billion, so the award corresponds to approximately one-third of the required funding. The new facility is expected to process 110 ktons/year of plastic waste. The company had plans to break ground in the 4th semester, with the mechanical completion being expected for 2028.

According to Eastman's website, the award aimed to "accelerate the demonstration of industry-leading, low-carbon-intensity PET ... and enable 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".

The cancelation of the award doesn't mean the project will be canceled but company officials don´t confirm the Project will move forward. According to the local Longview News-Journal, Kristin Parker, a communications representative at Eastman said in an email: "We strongly believe in the role this project plays in meeting the need for a circular economy and keeping plastic waste out of the environment. We also continue to believe that it fully aligns with the [Trump] Administration's goals of creating jobs, driving energy independence, and strengthening U.S. manufacturing."

Eastman has another molecular recycling plant in Kingsport, Tennessee (photo), which has been in operation since March, 2024.