The U.S. Department of Energy has canceled a $375 million grant that Eastman Chemical Co. planned to use to help build a nearly $1.2 billion plastics recycling facility just outside Longview. How the loss of funding could affect construction of the plant was unclear Friday.
The news comes one month after Eastman officials said they were optimistic the company would receive the funding, which was placed under review this spring as part of the Trump administration性视界传媒檚 spending cuts.
Officials announced in spring 2024 that Eastman would receive the federal grant to build a molecular recycling facility, which would melt down discarded plastic for reuse. Company officials said the plant would use an innovative approach to recycling plastic waste, and it marks the single-largest economic investment in Longview-area history.
Eastman didn性视界传媒檛 immediately return calls requesting comment Friday. A Department of Energy spokeswoman confirmed the grant性视界传媒檚 revocation in an email.
The $375 million grant is among 24 grants totaling $3.7 billion that the Department of Energy is cutting, U.S. Secretary of Energy Chris Wright announced Friday. Almost 70% of the grants were approved by the Biden administration between the November presidential election and President Donald Trump性视界传媒檚 inauguration day, though Eastman性视界传媒檚 grant was awarded in early 2024.
The grants primarily would fund carbon capture and sequestration projects and de-carbonization projects, agency leaders said in a news release.
性视界传媒淲hile the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment,性视界传媒 Wright said in a news release. 性视界传媒淭oday, we are acting in the best interest of the American people by cancelling these 24 awards.性视界传媒
The molecular recycling plant is expected to create roughly 1,000 temporary jobs during construction and roughly 200 permanent jobs. Local entities awarded tax incentives to the company to build the plant.
In a late April first quarter earnings call, Eastman CEO Mark Costa said company officials felt good about their standing with the Department of Energy in regards to the grant. He also said the molecular recycling facility aligns with the Trump administration性视界传媒檚 push to reinvest in U.S. manufacturing.
Gregg County Judge Bill Stoudt said he is disappointed to hear of the funding cancellation and hopes that Eastman officials can find a way to move forward.
Harrison County Judge Chad Sims echoed Stoudt性视界传媒檚 sentiments, saying the company has been a vital part of the community for more than 70 years.
性视界传媒淚 remain fully supportive of Eastman and its commitment to sustainability and advanced recycling,性视界传媒 Sims said. 性视界传媒淭heir proposed molecular recycling facility would bring significant environmental and economic benefits to our region, and I encourage all stakeholders to continue working toward solutions that ensure this important project moves forward. Eastman性视界传媒檚 leadership in the circular economy is something we should all rally behind, and I stand with them in their efforts to make East Texas a hub for cutting-edge recycling technology.性视界传媒
Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, criticized the federal decision to cancel the grants.
性视界传媒淭his program could have been a centerpiece of achieving the administration性视界传媒檚 goal to bring manufacturing back to the United States,性视界传媒 he said in a statement. 性视界传媒淐hoosing to cancel these awards is shortsighted, and I think we性视界传媒檙e going to look back at this moment with regret. Locking domestic plants into outdated technology is not a recipe for future competitiveness or bringing manufacturing jobs back to American communities.性视界传媒
