Plastic Recycling Industry Hits Setbacks, Calls for Technology Mix

A wave of cancellations and delays has swept chemical recycling projects across Europe and the United States. Companies such as Viridor have shut down former Quantafuel operations in Oslo (NO), Skive (DK) and Malmö (SE) citing unviable economics, while Plastic Energy entered administration, and Mura Technology abandoned a planned plant at Dow's Böhlen site (DE) after the adjacent steam cracker closed. Eastman has paused its planned molecular recycling facility in Normandy (FR) pending clearer regulation. Analysts note that chemical recycling now accounts for only 0.2% of European plastics production in 2024, with high capital costs, cheap virgin plastics, volatile energy prices and regulatory uncertainty hampering growth.

Researchers at BASF stress that effective recycling of technical polymers requires a mix of complementary technologies and advanced sorting to handle heterogeneous waste streams, especially for high‑performance materials used in the automotive sector. Dr. Bernhard von Vacano, head of BASF's Plastics Circularity program, says, "There is no single standard technology for recycling technical plastics; a smart combination of methods is essential to keep high‑value materials in the loop." This broader view underscores the industry's shift toward diversified recycling solutions amid the current setbacks.