Announced as part of the Q3 earnings release, Eastman has confirmed an offtake agreement with consumer goods giant PepsiCo for its third planned polyethylene terephthalate (PET) chemical recycling facility in the US, the location of which has not been announced.<\/p>\n\n\n\n
While the exact volumes of the offtake agreement were not shared, Eastman did confirm that the third methanolysis facility will have a planned input capacity of 160,000 tonnes\/year of hard to recycle PET waste and a planned output capacity of over 150,000 tonnes\/year.<\/p>\n\n\n\n
The facility is anticipated to be online by the end of 2026.<\/p>\n\n\n\n
As stated in Eastman\u2019s Q3 prepared remarks, \u201cThis definitive agreement is an important milestone for Eastman\u2019s circular economy platform, and we are looking forward to making progress on this and our other two molecular recycling projects in the coming quarters as we continue to prove to the world what is possible.\u201d<\/p>\n\n\n\n
Per the call, this latest agreement has given Eastman the confidence in their baseload demand to beginning the engineering work on their third facility. While the location has not been announced, tax documents filed earlier this year suggest they are considering locations in Texas<\/a>.<\/p>\n\n\n\n Also reiterated during their latest earnings call, Eastman\u2019s first facility in Kingsport, Tennessee<\/a> should be mechanically completed at the end of the first quarter of 2023, with a processing capacity of 110,000 tonnes\/year of hard to recycled PET waste.<\/p>\n\n\n\n