US Eastman to build $250m methanolysis project in Tennessee

HOUSTON (ICIS)–Eastman on Friday announced a $250m capital investment to build a methanolysis facility at its production hub in Kingsport, Tennessee.

The plant, also referred to as a molecular recycling facility, will use methanolysis to break down hard to recycle waste polyester plastic into monoethylene glycol (MEG) and dimethyl terephthalate (DMT) – intermediates Eastman will use to make 150,000-200,000 tonnes/year of new polymers.

Construction is expected to begin in the middle of this year, with the facility to be mechanically complete by year-end 2022.

The Tennessee state government agreed to “incentivize” the construction of project.

CEO Mark Costa, speaking during Eastman’s Q4 earnings call on Friday, said that contrary to its name, methanolysis does not involve producing methanol.

The process takes polyester waste and uses methanol and a modest amount of energy to break the waste into its intermediates.

It is much more energy efficient than producing new MEG or DMT from fossil fuels, he said.

Also, methanolysis is not mechanical recycling, a process that is limited as it can use only very clean waste feedstocks.

Methanolysis, on the other hand, can process wastes mechanical recycling cannot handle, and it can recycle them “constantly, with no degradation” in the recycling loop, he said.

“Methanolysis really is a long-term, infinite solution, much more similar to aluminium”, he added.

FEEDSTOCK SUPPLY
Regarding feedstock supplies for the project, Costa said the Kingsport, Tennessee based company developed a number of partnerships to provide the waste products.

Also, the company has the ability to separate and process a stream of mixed waste plastics at Kingsport.

Longer-term, an increasing number consumer brand companies are developing take-back programmes products that could supply Eastman, he said.

MARKT IS READY
Costa said the company had been planning to start building a methanolysis project in 2010, but the market was not ready for it.

That has changed, and “the market is very much ready for it now”, as the issues of climate change, circularity and sustainability have become an “incredible priority” around the world.

As such, Eastman customers are keen to increase their recycled content and are prepared to pay a premium for recycled products, he said.

Beyond the Kingsport project, Eastman sees global opportunities for its  methanolysis process and other technologies.

“As you would imagine, there are potential partners around the world who are very interested in collaborating with us on how to bring our innovative solutions to other regions, particularly in Europe,” Costa said.

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