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Exxon, under fire over plastic recycling, investing $200 mln to expand Texas plants

Exxon Mobil Corp, which is facing a California lawsuit over its supposed function in worldwide plastic waste contamination, will broaden plastics recycling that permits it to change nonrenewable fuel sources with discarded bottles and bags, the company stated on Thursday.

The move by among the world's largest polymer manufacturers comes amid growing concerns about slow-to-disintegrate plastics filling garbage dumps, leaching into ground water and producing potential health risks.

Exxon, which is promoting pyrolysis techniques that convert waste into brand-new plastic, will spend $200 million in Texas to expand so-called circularity operations in a global effort to build the capacity to process 1 billion pounds (454 million kg) of waste every year by 2027. The business calls its recycling technology Exxtend.

California filed a lawsuit versus Exxon in September, declaring the business was intentionally misleading the public about the restrictions of recycling. Exxon declines claims that it misinforms the general public about the constraints of plastics recycling, or about climate change.

The business's Baytown, Texas, complex this year will process 80 million pounds of plastic waste. The growth will permit it and a close-by Beaumont, Texas, plant the capability to process up to 500 million pounds in 2026.

The products will be sold as licensed recycled plastics.

Some of our clients for plastics see real worth in those, so they want to buy those certificates in addition to our quality plastic, said Karen McKee, president of Exxon Mobil Product Solutions, which sells polymers to commercial clients.

LyondellBasell, a competitor to Exxon in chemicals, likewise is setting up a plant in a German factory using a similar recycling innovation called MoReTec that likewise breaks down waste plastic.

Lyondell plans to install a large MoReTec unit in Houston later in this decade after it completely shuts a Houston refinery next year.

(source: Reuters)