June 9, 2025

In May, Shell Polymers and Freepoint Eco-Systems announced a landmark agreement where Shell’s petrochemical plant in Monaca, Pennsylvania, will offtake more than one hundred million pounds of recycled plastic feedstock annually from Freepoint’s advanced recycling facility in Hebron, Ohio.

This agreement is remarkable because, as a leading producer of plastic, the strategic importance of Pennsylvania’s plastics industry cannot be overstated. Our nation’s transportation, energy, consumer goods, defense, and healthcare all depend on plastics. They are responsible for most healthcare products and medical devices, the building blocks for renewable energy, high-performing building materials, food packaging, electronics, clothing, vehicles, military equipment, and much more. 

Everywhere you turn, Pennsylvanians rely on plastics for the modern quality of life we all enjoy. 

And plastics manufacturing is not just about materials; it’s also about jobs, innovation, and environmental responsibility. Pennsylvania’s plastics industry provides 40,000 jobs and generates more than $17 billion in annual sales.

Thankfully, innovative recycling technologies increase our much-needed domestic plastics supply while addressing the challenge of plastic waste. As demonstrated by the Shell-Freepoint agreement, end-of-life plastics once destined for the landfill or the environment can now be recycled and remanufactured into high-quality feedstock for new consumer products.

For Pennsylvania to lead the way, we need to develop strong industry-government partnerships, driving innovation and best practices, and creating a policy framework that incentivises innovation. 

The partnership between Shell and Freepoint embodies a commitment to a thriving economy and a sustainable future without sacrificing the quality of consumer products society demands.  

Steven Kratz, President 

Pennsylvania Chemical Industry Council 

April 22, 2025 

By Steven Kratz 

President, Pennsylvania Chemical Industry Council 

Environmental stewardship and sustainability aren’t routinely spoken in the same breath as the plastics and chemicals industries in general circles. But they most certainly should be. 

Pennsylvania Chemical Industry Council (PCIC) members are leading the charge with innovations and significant investments in sustainable manufacturing, production, advanced recycling, energy efficiency and carbon emissions reduction technologies. They are talking the talk and walking the walk when it comes to making the world a better place. 

The chemical industry in Pennsylvania is a significant economic driver, supporting high-wage jobs, generating tax revenue for communities, and advancing sustainable solutions. Perhaps the most important contribution of our industry is that nearly every aspect of modern life quality relies on chemistry.  Chemicals and polymers are responsible for most healthcare products and medical equipment, as the building blocks for renewable energy, high-performing building materials, food packaging, electronics, clothing, vehicles, and more.

Modern society needs continued chemical and plastics production and demand is expected to continue to increase.  But our members also understand that the health of the planet is dependent on all of us and that’s why they are making significant investments to develop new, safe, and innovative ways to make their products and operations more sustainable. 

Expanding advanced chemical recycling, decarbonizing supply chains, and using cleaner energy sources to lower emissions. Below are a few examples: 

• Covestro is taking significant steps to embed circularity into its operations. By developing innovative methods to recycle end-of-life plastics for reuse in production, the company aims to close material loops and reduce its reliance on fossil-based resources.
• Shell Polymers Monaca utilized over 10 miles of recycled pipes and the equivalent of three million recycled grocery bags worth of plastics helped build the roads at its Beaver County facility. 
• BASF has entered into power purchase agreements with solar and wind projects that will make up more than 25% of the company’s North American electricity consumption.
• Chemical industry companies such as Dow and LyondellBasell are adopting a holistic view of water stewardship, addressing water risks that extend beyond their facilities to include surrounding areas. 
• According to Dow, approximately 96 percent of the water withdrawn by the company is sustainably returned to the environment 
• LyondellBasell has aligned its environmental stewardship strategy with the United Nations CEO Water Mandate.

These are just a few of the many examples of PCIC member companies leading the way to invest in and drive meaningful environmental progress. 

For Pennsylvania to lead the way, we need to develop strong industry-government partnerships driving innovation and best practices. A clear, supportive policy framework that incentivizes advanced technologies, builds infrastructure, and avoids counterproductive bans is crucial. 

Leveraging public-private partnerships and market-based incentives to fuel research and development and build the necessary infrastructure can drive economic growth and sustainability. And together, we can build a better Pennsylvania economy and environment for future generations.