ExxonMobil’s Houston Plastic Recycling Program Falls Flat

By Tristan, Contributor
March 21, 2025 – 8:30 AM PDT, Houston, TX

ExxonMobil’s $2 billion Houston plastic recycling program hit a wall today, with a company report revealing it processed just 10% of its 2024 goal—50,000 tons of waste. Launched in 2023 with fanfare as a chemical recycling fix for the plastic crisis, the initiative’s been derailed by tech failures and low output, casting a shadow over Big Oil’s green pivot. Activist Jane Carter rallied protesters outside Exxon’s HQ, calling it “a sham dressed up as progress.”

The process, dubbed “advanced recycling,” breaks plastics into molecular bits for reuse, avoiding landfills. Exxon promised to handle 500,000 tons annually by 2026, pitching it as a lifeline for its petrochemical arm amid bans on single-use plastics. But the Houston plant’s pyrolysis reactors have struggled—clogged lines and inconsistent yields mean it’s churning out mostly low-grade fuel, not the reusable polymers touted. Engineers blame untested scaling, a misstep insiders flagged early.

The fallout’s bruising Exxon’s image. Rivals like Chevron have notched modest wins with similar tech, processing 20% more than Exxon’s haul. The company’s report admits “technical setbacks” but vows a fix, eyeing a $500 million upgrade by 2027. That’s cold comfort to environmentalists, who argue chemical recycling’s a distraction from cutting plastic production—global output hit 400 million tons last year, with less than 9% recycled.

Financially, it’s a drag too. The program’s sunk $1.8 billion so far, with returns barely covering operating costs. Stock slipped 1.5% today, and analysts at UBS cut their rating, citing “execution risk” as Exxon juggles oil profits and green bets. The Houston flop’s also spooking investors in a planned $5 billion expansion to Baton Rouge—some now want that cash rerouted to dividends.

Exxon’s doubling down, though. CEO Darren Woods briefed shareholders today, framing the shortfall as “a learning curve” and promising tweaks like better sorting tech. The company’s also leaning on a $100 million DOE grant to refine the process, though skeptics say it’s too little, too late. Houston’s output goal’s now slashed to 200,000 tons by 2028—a tacit admission of overreach.

The stakes are high beyond Exxon. Plastic recycling’s a $50 billion industry by some estimates, and failure here could chill investment across Big Oil. Cities like Houston, banking on jobs from the plant (500 so far), feel the pinch too—local leaders are pressing Exxon for clarity. Meanwhile, regulators are sniffing around, with Texas eyeing emissions from the low-yield reactors.
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For now, Exxon’s stuck in a bind—push forward and risk more losses, or pull back and cede ground to rivals. Woods insists “we’ll get there,” but today’s report paints a grim picture: a flagship project that’s more symbol than solution. The next year’s make-or-break for Exxon’s recycling cred—and its broader sustainability story.