A controversial facility that would process plastic waste to be burned in steel mills has been cancelled

Environmental advocates are celebrating the cancellation of the International Recycling Group’s project in Erie, PA

PITTSBURGH — International Recycling Group (IRG) has announced that they will cancel a planned plastic waste processing facility in Erie, Pennsylvania, due to President Trump’s federal funding cuts and tariffs, among other reasons.


The facility, slated to be built in a former Hammermill Paper Property less than a mile from Lake Erie, would have collected 160,000 tons of mixed plastic waste from a 750-mile radius and ground it into smaller pieces of plastic to be either burned in steel mills in Northwestern Indiana or sold for other uses.

Proponents of the plant hoped it would create local jobs and help reduce plastic waste, while opponents called it a “false solution” that would turn plastic waste into climate-warming and health-harming air pollution.

“Trucking plastics across the country to burn in blast furnaces under the guise of ‘recycling’ was and will always be a complete false solution and greenwashing attempt,” Susan Thomas, director of policy and press at Just Transition Northwest Indiana, said in a press statement.

Erie, Pennsylvania and Northwest Indiana are both home to superfund sites and industrial facilities like steel mills, oil refineries, and chemical plants. These facilities emit toxic pollutants like nitrogen oxide, sulfur dioxide, carbon monoxide, lead compounds, and particulate matter, which are linked to health effects like cancer, respiratory and heart disease, and mental illness. Advocates worried the IRG plant would add to the pollution burden and health problems in both communities.

“This project would have exacerbated toxic emissions in Northwest Indiana, harming regional health and the environment and furthering the ‘sacrifice zone’ status,” Thomas said.

Anne McCarthy, a coordinator Benedictines for Peace, an Erie-based Catholic advocacy group, said in a statement that her organization “believes this is a win for Lake Erie. We hope Erie will join the fast-growing labor force for truly renewable energy and create even more jobs than those promised by IRG.”

The project was also controversial because it received a $182.6 million loan under the federal Inflation Reduction Act (IRA) during the Biden administration. Last summer, more than 100 environmental groups wrote a letter to former U.S. Department of Energy Secretary Jennifer Granholm urging her to cancel the loan because “IRA money is supposed to be used to improve the environment, not worsen it.”

Those IRA funds are now on hold, according to an IRG press release, as the Trump administration works to claw back climate-related funding at the federal level. The IRG press release also cited Trump’s recently announced tariffs, which would result in higher costs for the project than anticipated, and difficulty securing buyers for recycled materials as companies backtrack on their sustainability goals.

“I am personally devastated after 18 years of working to bring this vision to a reality that we have failed to overcome these challenges,” Mitch Hecht, IRG’s founder and chief executive officer, said in the statement.

Only 5-6% of all plastic used in the U.S. is recycled due to high costs for the process and the lack of a market for recycled plastics. Numerous recycling facilities that have promised to help create a “circular economy” for plastics, like IRG’s proposed Erie plant, have been canceled or shuttered in recent years, including proposed chemical recycling plants in Youngstown, Ohio and Point Township, Pennsylvania. An Indiana-based plastics recycling company also recently filed for bankruptcy. In October 2023 the advocacy groups Beyond Plastics and the International Pollutants Elimination Network (IPEN) reported that there were 11 constructed U.S. chemical recycling facilities, only five of which are operating today, according to a spokesperson for the organization.

“Taxpayer dollars should be used for real solutions to environmental issues, not a polluting project masquerading as a quick fix to the plastic waste crisis,” Jess Conard, Beyond Plastics’ Appalachia director, said in a statement. “Providing more plastic to be burned as fuel for steelmaking is not a climate or waste solution — it only creates more pollution.”

A small rooftop solar panel on a tiled roof

Iran war sparks renewables boom as Europeans rush to buy solar, heat pumps and EVs

The war on Iran has become a catalyst for green technology, as Europeans scramble to find less volatile alternatives to oil and gas.
A various headshots of a woman in varying states of emotion

The emotional contradictions of climate messaging

Two new analyses of media and social posts reveal some unexpected twists — climate advocates warn of crisis while offering optimism, and skeptics lean on "science."

A water desalination plant in the desert next to a body of water

What Trump's threat against Iran's desalination plants means for Mideast

U.S. President Donald Trump has threatened to target Iran’s energy infrastructure, including its desalination plants.
A row of wind turbines against a blue sky

Texas saw a $50B future in renewables. Then the political winds shifted

Clean energy brought income to ranchers and to counties buffeted by boom-and-bust oil cycles. Federal policy changes threaten that momentum.
A prison wall with barbed wire and guard towers

Federal trial over insufficient AC in Texas prisons starts

The plaintiffs are asking for the entire Texas prison system to be air-conditioned by the end of 2029 in a trial that is expected to last two weeks.
Vermont State House, Montpelier, Vermont, USA. Vermont State House is Greek Revival style built in 1859.
Credit: jiawangkun/BigStock Photo ID: 71198428

Vermont hits back at Trump’s effort to block ‘climate superfund’ law

The law would make fuel companies help pay for damages caused by climate change. The Trump nadministration argues it’s unconstitutional.

Electrician in yellow-green shirt using a screwdriver while working on an electrical service panel

Many homes already have the power to electrify, study finds

A California power provider shows homes can ditch fossil-fueled appliances without pricey electrical service upgrades after all.
From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.