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LyondellBasell is considering a final investment decision (FID) in 2026 for a new chemical recycling plant in the US, potentially at its Houston refinery site. CEO Peter Vanacker shared this timeline during the company’s latest earnings call, marking a significant step in the company’s sustainability strategy.
The proposed plant would use LyondellBasell’s proprietary MoReTec technology, capable of producing 100,000 tonnes per year of cracker feedstock. This advanced process technology enables the chemical recycling of hard-to-recycle plastics, converting them into valuable raw materials that can be further processed into new plastics and chemicals. If approved, the plant would be part of a broader project aimed at converting the Houston refinery into a sustainability hub.
Integrating Sustainability at the Houston Refinery
The Houston refinery would undergo significant retrofits as part of this project. Existing hydrotreaters could be upgraded to process feedstock from the MoReTec unit and third-party recycling plants. The resulting feedstock would be sent by pipeline to LyondellBasell’s nearby Channelview operations, where it would be processed into olefins. These olefins could then be polymerized to produce circular polyolefins, marketed under LyondellBasell’s CirculenRevive brand.
The refinery could also be modified to process renewable materials into distillates and feedstock, which could be used in the company’s crackers. The resulting polymers would be sold under the CirculenRenew brand, reinforcing LyondellBasell’s commitment to expanding its sustainable product portfolio.
Renewable Feedstocks and Hydrogen Integration
While LyondellBasell has not specified the sources of renewable feedstock, one potential supplier is the storage and logistics hub in Harvey, Louisiana. Developed by Kinder Morgan and Neste, the hub collects used cooking oil and other renewable materials, which could be utilized in the Houston refinery’s processes.
In terms of hydrogen, necessary for upgrading recycled and renewable feedstock, LyondellBasell is part of a consortium with Air Liquide, Chevron, and Uniper evaluating Gulf Coast sites for a hydrogen and ammonia project. The Houston refinery is the leading candidate. Additional hydrogen could come from the proposed Houston HyVelocity Hub, part of the Department of Energy’s Regional Clean Hydrogen Hubs program.
Global Expansion with German Facility
In addition to the US plans, LyondellBasell began construction on its MoReTec 1 chemical recycling plant in Wesseling, Germany, in September. This facility, with a capacity of 50,000 tonnes per year, is expected to be operational by 2026. The plant boasts a plastic-to-plastic yield of over 80% and will operate entirely on renewable power, further advancing LyondellBasell’s sustainability efforts.
Moving Forward
With the potential FID in 2026, LyondellBasell’s Houston facility could play a key role in the company’s transition toward a more circular economy. By integrating cutting-edge recycling technology and renewable energy sources, LyondellBasell is positioning itself as a leader in sustainable chemical production.
Source: ICIS
