Exxon Mobil Invests $200M in Texas to Process 1 Billion Pounds of Plastic Waste—Here’s What That Means

Exxon Mobil has announced plans to expand its plastic recycling operations as part of its strategy to enhance sustainability. On Tuesday, the oil giant unveiled its intention to invest $200 million in Texas to scale up its “circular operations,” aiming to process 1 billion pounds (454 million kilograms) of plastic waste annually by 2027.

The expansion will include enhancements to its Baytown facility and a nearby plant in Beaumont, Texas. Together, these facilities are expected to handle up to 500 million pounds of plastic waste by 2026. This year alone, the Baytown site is on track to process 80 million pounds of waste, producing certified recycled plastics for the market.

Exxon’s product solutions division president Karen McKee emphasized the demand for these materials, stating, “Some clients are eager to purchase high-quality plastics along with the certification because they recognize the true value of these materials.”

Exxon is leveraging pyrolysis technology, branded as “Exxtend,” to convert waste into new plastics, positioning itself as a leader in this emerging field. The initiative addresses growing concerns about the environmental impact of plastic waste, including its slow decomposition and potential to contaminate groundwater.

However, Exxon faces legal scrutiny. In September, the state of California filed a lawsuit accusing the company of misleading the public about the limitations of recycling. Exxon has denied the allegations and is contesting the case.

Despite these challenges, Exxon Mobil’s stock rose 1.72%, closing at $122.39.