Eastman announced the reinstatement of a previous U.S. Department of Energy (DOE) award supporting the re-industrialization of a strategically important domestic recycled-plastics supply chain. The award provides an opportunity for Eastman and DOE to advance an updated investment plan that expands proven, U.S.-developed methanolysis technology, restores underutilized American recycling assets and increases domestic capacity to transform difficult-to-recycle polyester waste into virgin-quality recycled materials.
The reinstated award is $375 million, less approximately $35 million Eastman has received related to investment in design and engineering under the previous agreement. Investments will advance in a disciplined, milestone-based manner aligned with customer contracts and supportive policy. The project scope has been adapted with key investment benefits, including:
- Expanding proven U.S. advanced manufacturing technology by increasing output from Eastman鈥檚 commercial-scale methanolysis facility in Kingsport, Tennessee, by approximately 30% through de-bottlenecking and technology advancements
- Re-industrializing existing American recycling assets and strengthening the critical recycled PET supply chain by restarting and repurposing underutilized U.S. recycling infrastructure
- Creating a disciplined pathway for our second U.S. methanolysis facility, including flexibility in the location and timing of a potential second U.S. methanolysis facility
The reinstated award will support an integrated U.S. manufacturing strategy spanning waste processing, advanced recycling, and production of virgin-quality recycled materials. The updated scope includes the debottlenecking of Eastman鈥檚 Kingsport methanolysis facility, the restart and repurposing of underutilized U.S. recycling assets, and milestone-based planning for a potential second U.S. methanolysis facility. Together, these investments are intended to strengthen domestic infrastructure for collecting and processing difficult-to-recycle polyester waste and converting it into valuable raw materials for American manufacturing.
鈥淭he Department of Energy is proud to support this strategic investment in American ingenuity, industrial competitiveness, and the future of U.S. manufacturing,鈥� said Assistant Secretary of Energy Audrey Robertson. 鈥淏y expanding its proven, American-made recycling technology and putting underutilized assets back to work, Eastman is demonstrating how innovation can strengthen domestic manufacturing, revitalize existing industrial infrastructure, and build more resilient supply chains. DOE will continue to collaborate with private industry to make U.S. manufacturing the strongest in the world and grow jobs and economic prosperity.鈥�
鈥淭his partnership represents an opportunity to strengthen American manufacturing by building a more resilient domestic supply chain for recycled materials,鈥� said Mark Costa, Eastman board chair and chief executive officer. 鈥淓astman is demonstrating that methanolysis technology can transform difficult-to-recycle polyester waste into virgin-quality materials at a commercial scale. With DOE鈥檚 support, we can accelerate the expansion of this technology, restoring the productive use of existing American industrial assets in a disciplined way that aligns with customer demand.鈥�
The reinstated award builds on the success of Eastman鈥檚 U.S.-developed methanolysis technology and the performance of its first commercial-scale facility, located in Kingsport. As previously shared, the company expects up to $100 million of incremental revenue growth in 2026 compared with 2025 from the Kingsport facility and more than $100 million of incremental revenue growth again in 2027. Eastman has also identified an opportunity to increase Kingsport methanolysis capacity by approximately 30% through de-bottlenecking with modest capital investment that will now be included in the updated scope of the DOE funding.
鈥淔or our customers, this creates an opportunity to act now,鈥� Costa said. 鈥淏y partnering with Eastman, they can secure reliable domestic sources of high-quality recycled content while helping build responsible recycling end markets that convert more hard-to-recycle waste into valuable materials. Customer commitments are what will translate this proven technology into a stronger, more resilient U.S. circular economy.鈥�