Houston Refinery Shift to Plastic Recycling Sparks Community Backlash

After shutting down Texas’s oldest refinery, LyondellBasell is pivoting to plastic recycling at its Houston Ship Channel site—but residents and environmental advocates say they’ve been left out of the process.

John Hopkins

By 

John Hopkins

Published 

May 16, 2025

Houston Refinery Shift to Plastic Recycling Sparks Community Backlash

LyondellBasell's iconic Houston refinery, recognized as the first of its kind along the Ship Channel, ceased its petroleum operations this spring, resulting in the layoffs of hundreds of employees. The company is committed to maintaining its presence at the site. 

The facility is set to transition into a chemical recycling plant, a decision that has sparked significant backlash from residents and environmental organizations.

A company has applied for a fast-tracked air permit to construct an advanced plastic recycling facility. This unit is designed to utilize a catalyst to break down plastic waste into reusable chemicals. The process, although producing fewer emissions than the closed refinery, continues to emit pollutants into the environment. State regulators have indicated that a public comment period is not necessary.

Community members are expressing frustration and concern over the situation. “This new process fundamentally changes LyondellBasell’s Houston refining,” stated Grace Tee Lewis from the Environmental Defense Fund. Experts warn that alterations in airborne chemicals may significantly affect public health.

During a recent public hearing concerning a distinct permit — the facility's federal Title V air permit — residents were explicitly instructed to refrain from discussing the recycling project. This directive comes despite the possibility that the project could be included in future amendments without public input until 2030.

“We are stymied,” stated Earthjustice attorney Lauren Godshall. “We wish to address this matter now, rather than waiting for years to pass.”

Residents have raised concerns regarding the site's history of pollution violations, expressing doubts about the safety of the so-called “advanced recycling” technology. Critics, including California Attorney General Rob Bonta, have called it a “false solution.” He recently filed a lawsuit against Exxon, citing similar allegations about its Baytown facility.

LyondellBasell initiated a comparable project in Germany last year and has announced that its Houston unit is integral to its worldwide decarbonization efforts. 

However, local leaders such as Patricia Gonzales of Caring for Pasadena Communities express skepticism: “We assert our right to determine the events that unfold in our community.”

Related Posts