Nova Chemicals has decided not to move forward with its planned chemical recycling facility in Sarnia, Ontario. According to Plastic News, Nova and its partner, Plastic Energy, completed a feasibility study in 2024 but ultimately chose not to proceed with the project at this time.

Despite this decision, Nova remains focused on advancing recycling technologies. "Nova continues to monitor innovations in the advanced recycling space and supports policies that recognize the complementary roles of both mechanical and advanced recycling technologies," the company stated. "We are actively investing in mechanical recycling while also advocating for advanced recycling as a critical solution for processing hard-to-recycle plastics. Strong supply and demand policies are essential to ensuring the economic and environmental viability of both recycling streams."

Nova first announced its partnership with London-based Plastic Energy Ltd. in June 2023 to explore the development of a chemical recycling facility in Sarnia. The proposed plant was set to use Plastic Energy’s proprietary pyrolysis technology, which converts post-consumer plastics into a liquid feedstock called Tacoil. This process produces about 850 liters of Tacoil per ton of plastic waste processed. Tacoil can then be used to create virgin-grade polyethylene resins suitable for food packaging and other high-performance applications.

If completed, the plant would have been the largest of its kind in Canada, with an annual production capacity of nearly 150 million pounds. Plastic Energy already operates two commercial chemical recycling plants in Spain and has additional projects underway in Europe and Asia.

Nova remains committed to its sustainability goals, which include ensuring that 30% of its polyethylene sales come from recycled content and reducing Scope 1 and 2 absolute carbon dioxide emissions by 30% by 2030. As part of this effort, the company recently opened a large film recycling plant in Connersville, Indiana. This facility focuses on recycling polyethylene pallet wrap and is expected to produce 150 million pounds of post-consumer recycled PE resin per year.

As one of North America’s largest polyethylene resin producers, Nova continues to play a key role in the industry’s transition toward more sustainable plastic solutions. The company is also undergoing major changes—earlier this month, it was announced that Nova will be acquired for $13.4 billion by Borouge Group International, a newly formed entity combining materials firms Borealis and Borouge.

While Nova has decided not to proceed with the Sarnia project, its ongoing investments in both mechanical and advanced recycling reinforce its long-term commitment to sustainable plastic waste management.