ExxonMobil pauses US$118M European recycling push amid EU policy hurdles

USA- ExxonMobil has suspended a US$118 million investment in chemical recycling projects across Europe, citing draft EU regulations as the key obstacle. 

The planned facilities at sites in Rotterdam and Antwerp aimed to handle 80,000 tonnes of plastic waste annually through pyrolysis processes. 

According to company officials, local authorities and communities backed the initiatives fully, but uncertainties in recycled content calculations have derailed progress.

Jack Williams, ExxonMobil’s senior vice president, stated that the projects remain ready for launch except for regulatory issues. 

“We want to make these investments,” he said in a recent interview. “Everything else is on track. We have had local support.” 

The draft EU rules, released by the European Commission in July, introduce a mass balance method that tracks recycled content based on input and output volumes. 

ExxonMobil argues this approach grants fewer credits to integrated plants like theirs, which blend waste with fossil feedstocks, compared to standalone operations. 

Under the proposal, the Rotterdam and Antwerp sites would earn less than half the expected recycling credits, making the ventures financially unviable.

This pause follows a public consultation where other firms, including Finland’s Neste, raised similar objections. 

Industry groups have pressed for technology-neutral policies to support both mechanical and chemical methods, essential for meeting the EU’s goal of 30% recycled content in plastic bottles by 2030. 

Williams also called for scrapping the Corporate Sustainability Due Diligence Directive, describing it as burdensome with extraterritorial demands on global supply chains that raise compliance costs.

The decision adds to ExxonMobil’s regulatory pressures. 

In September 2024, California sued the company, accusing it of downplaying plastic waste volumes while promoting advanced recycling as a cure-all. 

The suit claims ExxonMobil knew its programs could recycle only a small share of generated waste. Separately, reports from early September indicated the firm is considering selling its European chemical assets in Belgium and the UK, including plastics operations, amid shifting market dynamics.

As the EU Parliament and Council gear up for negotiations on the rules later this year, stakeholders watch closely. 

A forthcoming circular economy package in 2026 could clarify definitions and boost cross-border waste handling. 

ExxonMobil maintains its focus on recycling tech but awaits policy stability to resume large-scale commitments. 

Environmental advocates, meanwhile, push back, noting chemical recycling’s high energy use and advocating for greater emphasis on reuse to cut plastic production overall.

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