The European Commission has approved a €500 million French scheme to support plastics chemical recycling.
The French state aid scheme will cover up to 40% of eligible costs for chemical recycling projects targeting plastic waste including trays, films, non-beverage bottles, and textile materials with a certain amount of polyester content.
The French government will offer direct grants to companies of all sizes and operating in all sectors.
The EU assessed the scheme conforms with its State Aid rules. It found that it is ‘necessary and appropriate’ to allow for the deployment of chemical recycling of plastics; that it has an ‘incentive effect' as the beneficiaries would not carry out the relevant investments without the public support; and that France has put sufficient safeguards in place to limit impact on competition and trade within the EU.
The EU said the scheme contributes to its goal of achieving circularity in production and consumption processes.
“The French scheme approved today will support investments for chemical recycling of plastics. It will contribute to the EU’s objective of reaching climate neutrality by 2050, by promoting the use of existing resources through efficiency and circular economy practices,” said Teresa Ribera, executive vice-president for Clean, Just and Competitive Transition the European Commission. “At the same time, the scheme will ensure that any potential competition distortions will be kept to a minimum.”
The scheme’s approval is likely to boost chemical recycling in France, allowing projects to move forward. Construction of Carbios’ PET depolymerisation plant in Longlaville, for example, has been put on hold for six to nine months as the French biotech company waited for funding to be approved by the Commission.
Carbios obtained a grant of €30 million under the France 2030 programme, which aims to stimulate employment, boost productivity and increase the competitiveness of French businesses.
The funding approval comes just days after Carbios announced it will eliminate around 40% of its workforce in order to cut costs as it waits for financial support to build the plant.
Other chemical recycling projects to benefit from the boost include Eastman’s PET depolymerisation plant in Port-Jérôme-sur-Seine, Normandy, set to become the world’s largest depolymerisation plant.
The US-based company chose France as a strategic location as the region set itself apart as the leader of PET recycling in Europe.
The funding came too late for Suez, Loop Industries, and SK Geo Centric, which abandoned plans for their PET depolymerisation plant in Saint-Avold in late 2024. The companies said the project’s economic model was not viable, significantly exceeding the €440 million initial budget.