- ExxonMobil paused €100 million investments in Rotterdam and Antwerp.
- Projects aimed to process 80,000 tonnes of plastic waste annually.
- EU's draft 'mass balance' rules affect economic viability.
- Regulatory uncertainty hinders large-scale recycling investments.
Project Suspension
ExxonMobil has halted plans for chemical recycling projects in Rotterdam and Antwerp, citing unfavorable EU policies. The projects, valued at €100 million, aimed to process 80,000 tonnes of hard-to-recycle plastic waste annually.
EU Policy Dispute
The suspension is primarily due to disagreements over new EU regulations, particularly the draft rules on calculating recycled content in products using chemical recycling. ExxonMobil argues that the proposed "mass balance" methodology disadvantages its integrated petrochemical plants by favoring standalone recycling facilities.
Economic Viability Concerns
Senior company officials have expressed that despite strong local support, the lack of a clear regulatory framework from the EU makes these large-scale investments economically unfeasible. The company views the policy as a barrier to innovation in the plastics value chain, even though chemical recycling is crucial for processing plastics that cannot be mechanically recycled.
Industry Implications
This decision reflects a broader tension between the EU's environmental goals and the economic realities faced by large industrial players. ExxonMobil's move highlights the challenge for the EU to create a policy environment that encourages private investment in circular economy technologies. This may lead other companies to reconsider their European investments in advanced recycling until regulatory clarity is achieved.
