Cyclyx secured

Houston energy company buys in on plastic recycling

LyondellBasell bought into a joint venture, Cyclyx International, that was formed in 2020 by Spring-based energy giant ExxonMobil and Tigard, Oregon-based plastic recycling innovator Agilyx. Photo courtesy ExxonMobil

Dutch chemical company LyondellBasell, whose U.S. headquarters is in Houston, has purchased a 25 percent stake in a joint venture that seeks to accelerate advancements in plastic recycling.

The joint venture, Cyclyx International, was formed in 2020 by Spring-based energy giant ExxonMobil and Tigard, Oregon-based plastic recycling innovator Agilyx.

In 2022, Cyclyx announced it had inked a deal with ExxonMobil and LyondellBasell to develop a first-of-its-kind plastic waste sorting and processing plant in the Houston area. The estimated $100 million facility, set to open in 2024, is poised to annually produce 330 million pounds of plastic feedstock, which is made up of recycled materials that can be used to manufacture new plastics.

“Investing in plastic waste value chain experts such as Cyclyx, together with Agilyx and ExxonMobil, helps create the robust supply chains we all need to increase access to circular and renewable feedstocks,” Yvonne van der Laan, executive vice president of LyondellBasell, says in a news release.

In conjunction with the LyondellBasell announcement, Cyclyx says it’s expanding the licensing-only model for its recycling centers to add a “build, own, and operate” option. Cyclyx says this shift will enable it to control custom-blended feedstocks from sourcing through delivery.

Last year, Cyclyx revealed it had completed a pilot project for grocery store chain Food Lion.

At the outset of the project, plastic waste at certain Food Lion stores was collected for recycling. Cyclyx then sorted and pre-processed the waste before sending it to ExxonMobil’s recycling facility in Baytown. In Baytown, ExxonMobil used its Exxtend technology for advanced recycling to create new “virgin quality” plastics and other products.

ExxonMobil says the Baytown facility, which began operating in 2021, can process more than 80 million pounds of plastic waste per year. The company says the Exxtend technology it uses there breaks down hard-to-recycle plastic waste — such as synthetic athletic fields, bubble wrap, and motor oil bottles — that previously would have headed to landfills.

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A View From HETI

The officials say Harris County “has little to no authority” over the construction of data centers. Photo via HARC

Three Harris County officials are pushing for greater local control over the development and operation of data centers.

County Attorney Abby Kamin, County Commissioner Lesley Briones and County Commissioner Adrian Garcia recently called for action to give Harris County more power to regulate data centers.

As it stands now, Harris County “has little to no authority” over the construction of data centers, Briones said at a news conference. Harris County has 55 operating, under-construction, or planned data centers, according to a document filed with the county.

Briones outlined four steps being included in the Harris County commissioners’ exploration of potentially tighter local regulation of data centers:

  • Reviewing what Harris County can and cannot do regarding data centers
  • Creating a Harris County plan for the upcoming state legislative session aimed at granting more local control over data center construction and operations. State lawmakers would need to approve any changes in local control.
  • Establishing community “listening” sessions in Harris County about data centers
  • Notifying Harris County commissioners when a proposed data center seeks permits

Kamin noted Houston and Harris County lack zoning regulations, and the county’s 34 cities set their own zoning rules. Furthermore, she said, Texas Attorney General Ken Paxton has not issued a ruling on whether counties can impose a moratorium on development of data centers.

However, she said, “limited jurisdiction does not mean limited responsibility … New technology is arriving in our communities faster than our laws and institutions can keep up with, whether that’s data centers, AI or even drones.”

The effort by Kamin, Briones, and Garcia follows Gov. Greg Abbott’s recent statewide halt of new environmental and construction permits for data centers. State permitting is frozen until the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas complete their review of data centers.

Their initiative also comes amid growing public concern over the amount of electricity and water gobbled up by data centers, as well as residents’ own rising electric and water bills.

Houston-based CenterPoint Energy expects to connect 8 gigawatts of new data-center loads in the Houston area by 2029, with about 4 gigawatts to follow, Kamin said. That, she said, would significantly increase peak power demand.

“No industry should get to monopolize or run roughshod over residents, public safety, and our critical natural resources,” Kamin said.

That being said, Kamin and Briones stressed they take pride in Houston being the Energy Capital of the World and Texas being an economic powerhouse.

“This isn’t about being against technology or new technology, but growth has to go hand in hand with accountability,” Kamin said.

Garcia said he’s open to welcoming data centers as good corporate neighbors, but not without protecting the people who live near these projects.

“I’ll keep an open mind,” he said, “but I want to know what will ultimately be the benefit to the community. And right now, I need tools [to do that].”

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