For years, chemical recycling has been promoted as the technology that would solve the plastics waste crisis. Unlike mechanical recycling, which struggles with contaminated or mixed plastic waste, chemical recycling promised to convert difficult-to-recycle plastics back into valuable feedstocks for new products.
Reality, however, is proving far more challenging.
A growing number of chemical recycling projects in Europe and the United States have recently been delayed, scaled back or abandoned altogether. Developers cite a combination of high capital costs, weak demand for recycled materials, cheap virgin plastics, volatile energy prices and uncertainty over future regulation.
Some of the most notable setbacks include:
- Viridor has closed its former Quantafuel operations in Oslo (Norway), Skive (Denmark) and Malmö (Sweden), despite reporting pyrolysis oil yields of 70–75%. The company said the technology works, but current market conditions have made the business commercially unviable.
- Plastic Energy, one of Europe’s pioneers in chemical recycling, entered administration earlier this year. Its two Spanish plants continue to operate, but the parent company cited the European market downturn and unsustainable economics.
- Mura Technology cancelled plans to build a large chemical recycling plant at Dow’s Böhlen site in Germany after Dow announced the closure of the adjacent steam cracker, removing the project’s industrial rationale.
- Eastman has paused development of its planned molecular recycling facility in Normandy, France, pending greater regulatory certainty in Europe.
According to Chemistry World, Europe had around 289,000 tonnes of annual chemical recycling capacity before the recent closures, with approximately 65 projects in the pipeline. However, nine projects have already been cancelled, and chemically recycled materials accounted for just 0.2% of European plastics production in 2024.
The setbacks highlight a growing gap between the technology’s theoretical potential and the realities of operating large-scale facilities in today’s market. Investors are increasingly demanding evidence that projects can generate competitive returns rather than relying on ambitious announcements.
None of this means chemical recycling has no future. Several companies continue to invest in promising technologies, particularly in PET depolymerisation and advanced recycling processes. However, the recent wave of closures and postponements suggests the industry is entering a more cautious phase, where commercial performance may matter more than technological promise.
For policymakers, the developments raise an important question: should chemical recycling continue to receive the same level of regulatory support and public funding, or is it time for a more pragmatic assessment of which recycling technologies can deliver both environmental and economic benefits?
The coming years will determine whether chemical recycling becomes a mainstream part of the circular economy—or remains a niche technology searching for a viable business model.
Sources
- https://www.chemistryworld.com/news/chemical-recycling-plants-closing-in-eu-and-us/4023904.article
- https://www.viridor.co.uk/news-and-insights/viridor-proposes-to-cease-european-chemical-operations-and-calls-for-essential-policy-changes-to-make-advanced-plastics-recycling-investable/
- https://www.thecooldown.com/green-business/chemical-recycling-projects-cancelled-eu-us/