The U.S. Department of Energy reinstated a $340 million grant for Tennessee-headquartered Eastman after the company had previously received $35 million, bringing the grant’s stated total to $375 million. The funding supports expansion work at Eastman’s Kingsport methanolysis facility and planning for a revised second U.S. methanolysis project in Longview, Texas. DOE canceled the grant in 2025, delaying the Texas project.
What it means
Eastman said it plans to increase capacity at its Kingsport methanolysis plant by about 30% through debottlenecking and technology improvements. The grant can cover up to 50% of capital costs, with Eastman responsible for about half of the costs tied to capacity expansion and development of the planned Longview plant.
The company revised the Longview project, and CEO Mark Costa said its capital spending would be substantially lower than under earlier plans. Eastman said 40% to 50% of the Longview project’s capital had been assigned to processing, polymer lines, infrastructure and other components outside methanolysis.
Key facts
- DOE reinstated $340 million after Eastman had previously received $35 million.
- The grant’s stated total is $375 million.
- Eastman plans about 30% capacity growth at its Kingsport methanolysis plant.
- DOE can pay up to 50% of eligible capital costs under the grant.
- Eastman must provide about half of the costs for Kingsport expansion and Texas project development.
- DOE canceled the grant in 2025.
- About 25% of U.S. post-consumer PET processing capacity has closed during the past 18 months.
Source: Resource Recycling, reporting an Eastman and U.S. Department of Energy grant action