With funding uncertain, Erie-based newBin suspends collection of plastics for recycling
With funding uncertain, Erie-based newBin suspends collection of plastics for recycling
International Recycling Group founder Mitch Hecht describes Erie plans
The planned recycling facility is supported by some in the plastics industry but environmental concerns from local groups in Erie point out questions.
- NewBin, the plastics collecting affiliate of International Recycling Group (IRG), has paused operations due to funding uncertainties.
- The loan is intended to support the construction of a new plastics recycling facility in Erie, Pennsylvania.
As Erie-based International Recycling Group awaits word on the status of a conditional loan guarantee, its newBin affiliate has suspended collection of plastics for recycling.
Chris Nshimyumuremyi, president of newBin Corp, which was founded in 2021 to collect plastics for parent company IRG, announced the change.
He wrote: “Plastics recycling is dependent on public policy decisions, including continued federal and state financial support. NewBin’s collection service has, since its inception, been receiving financial support from International Recycling Group.”
His message continued: “Due to uncertainty related to continued support by the federal government, we have had to put all collection activities on hold for the time-being.”
Future of plastics recycling in Erie could hinge on federal loan
In July, the U.S. Department of Energy’s Loan Programs Office announced a conditional loan guarantee of $182 million to help IRG build a new plastics recycling facility in Erie.
While Mitch Hecht, CEO and founder of IRG, continues to raise money for the $300 million project, there’s been no word on the status of the conditional loan.
However, questions remain about the state of many conditional loan guarantees made by the LPO during the administration of President Joe Biden, according to a report by Latitude Media, which reports on energy.
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According to the online publication, Republicans in Congress sent the LPO a letter in December, accusing the office of “scrambling to close deals” as part of the “rush-to-green agenda” voters had just rejected.
According to that same report, the Trump-appointed inspector general for the Department of Energy “urged LPO to immediately suspend “all loan and loan guarantee packages.”
Now, these conditional commitments are in limbo following the Trump’s administration’s pause of green new deal spending and a broader freeze of virtually all discretionary federal spending, according to a report in Utility Dive.
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Supervisor says 30% of Summit residents use newBin
It’s against that backdrop that newBin has discontinued collections at collection sites in Erie and Summit Township.
Summit Township Supervisor Jack Lee estimates that about 30% of the township’s residents made use of the newBin drop-off location.
Whether or not IRG will reinstate funding for the collection effort will likely depend on the status — both public and private — of funding sought by International Recycling Group.
Nshimyumuremyi expressed optimism in his online message.
“We hope that this will only be a limited pause and look forward to restarting collection at some time in the future.”
Contact Jim Martin at jmartin@timesnews.com.