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23 Feb 2025

Chemical recycling's promise appears to be fading. Will this continue, or will it regain its footing?

AMC Plastic Recycling Solutions Ltd. Stand: B50
Chemical recycling's promise appears to be fading. Will this continue, or will it regain its footing?
The chemical recycling industry has faced significant challenges, with early investors – from start-ups to multinational petrochemical companies – scaling back or closing operations. Notable examples include Ioniqa's bankruptcy (10 October 2024), Renewcell's financial struggles (Forbes, 27 February 2024), and Clenflex's closure (Energy Watch, 12 March 2024). Even major players like Shell have scaled back projects, as noted in their 2023 Sustainability Report. Critics argue that chemical recycling is “a myth” or even “a threat to the environment.” Are these criticisms valid, or do they oversimplify a more nuanced reality?

Complex issues such as these demand thoughtful analysis, not just soundbites. The industry must respond transparently and credibly to these claims. This requires acknowledging valid criticisms, being honest about the limitations of chemical recycling technologies, and refraining from making exaggerated claims about their potential.

Critics highlight issues such as high energy use and carbon footprints. Compared to reducing or reusing plastics, or mechanical recycling, chemical recycling fares worse. However, it performs far better than incineration or landfilling – the fate of 90% of plastics in 2024. As renewable energy adoption increases, its environmental performance will further improve. Another criticism is the release of toxic substances. While some chemical recycling methods produce harmful by-products, these are regulated and managed according to law, not indiscriminately released into the environment.

The industry must also recognise its technological limitations. Many chemical recycling methods are restricted to specific polymer types and require relatively pure feedstocks, which can affect yields and costs. However, these technologies still have a role, particularly given the vast quantities of plastic waste currently uncollected and unrecycled. This untapped material can prevent competition with mechanical recyclers, provided collection systems are expanded.


It is vital to position chemical recycling as part of a broader solution, not a “silver bullet.” Honest assessments of costs, yields, and necessary purification steps are crucial for investors and stakeholders to make informed decisions. Unrealistic promises have led to failures, with underperforming projects often unable to meet inflated expectations. By managing expectations and focusing on merit-based investment, chemical recycling can demonstrate its value.

The industry's current struggles stem from multiple factors. External pressures include low virgin resin prices and regulatory delays. However, some issues, such as overhyped claims, are self-inflicted. As regulations mandating recycled content are implemented and resin prices stabilise, the demand for chemical recycling will grow. To capitalise on this opportunity, the industry must embrace transparency and credibility. Only then can it secure its place as an indispensable component of the solution to the climate crisis.

Thomas Blocher, ChE

Business Manager Chemical Recycling

BUSS ChemTech AG

+41 61 825 6317 

 

 

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