Eastman wins reinstated $375-million DOE award for methanolysis recycling

Eastman announced on October 29-30, 2026 that DOE had reinstated a $375-million award, less about $35 million already received for design and engineering under the previous agreement.
The revised scope expands Eastman's commercial-scale methanolysis facility in Kingsport, Tennessee by approximately 30% through debottlenecking and technology upgrades. The plant can currently process 110,000 metric tons of waste polyester per year.
The deal also funds restarting and repurposing underutilized U.S. recycling assets and sets a milestone-based path toward a second U.S. methanolysis plant, with flexibility on location and timing.
The original 2024 award was intended for a plant in Longview, Texas, but was withdrawn in 2025. DOE funding is expected to cover up to 50% of capital needs.
Eastman expects up to $100 million of incremental revenue in 2026 versus 2025 from Kingsport and more than $100 million again in 2027.