Latest News

Exxon suspends European plastic recycling plans due to draft EU regulations

ExxonMobil has halted 100 million euros (118.4 millions) in investment in European Plastic Recycling due to draft EU rules that define the recycled content of a final product.

Two projects are being developed by the U.S. energy company to recycle chemicals at its existing plants in Rotterdam, and Antwerp. The project will process 80,000 tons of plastic waste annually.

In an interview, Jack Williams, Senior Vice-President of ExxonMobil, said that the two projects were now halted due to the EU draft rules which he claimed discriminated against existing petrochemicals facilities versus standalone installations.

"Everything is going according to plan." He said, "We've received local support." "We are interested in making these investments." "The only thing that stands between us and this project is EU Policy."

A draft law is being considered to determine the amount of recycled material based on both the mass of waste entering the system and that of the output.

ExxonMobil has stated that it favors simpler standalone technologies, where the path to production from plastic waste is more clear. It penalises complex integrated facilities which feed fossil feedstocks.

Williams stated that based on the proposed law, the facilities of its company would receive less than half the credit due.

A public consultation on the draft ended one month ago. Exxon shares the view of industry groups and companies including Finland's Neste.

By 2030, the EU has set targets for plastic recycling. For example, plastic bottles must contain 30% recycled material.

According to the industry, it is necessary to combine mechanical recycling which reprocesses plastic waste without altering its chemical structure with chemical recycling. This can be done by reducing complex plastics into their basic chemical components.

Williams said that while U.S. tariffs on imports weren't a major problem for his company, EU regulations were.

He specifically called on the EU to repeal Corporate Sustainability Due Diligence (CSDDD), which requires large companies to verify if their supply chain uses forced labour or causes environmental damage.

Williams claimed that the rules were complex, expensive, bureaucratic and in some cases impossible to achieve. They also applied outside of the EU. The EU has already loosened the rules and delayed their implementation. (1 dollar = 0.8447 euro) (Reporting and editing by Ed Osmond, Philip Blenkinsop)

(source: Reuters)