Solvay Reaches Settlement With New Jersey Department Of Environmental Protection On PFAS Remediation

Today, Solvay Specialty Polymers USA, LLC, a subsidiary of Solvay S.A. (Solvay) and the New Jersey Department of Environmental Protection (NJDEP) announced an agreement resolving certain PFAS related claims in New Jersey.

Under the terms of the agreement, Solvay will pay $75M to NJDEP for Natural Resource Damages (NRDs) and $100M to fund NJDEP PFAS remediation projects in areas of New Jersey near the company’s West Deptford site. The settlement includes commitments for Solvay to complete remediation activities that the company began in 2013, including testing water and soil near the West Deptford site. Solvay has agreed to establish a remedial funding source in the amount of $214M to fund those activities. The agreement, structured as a Judicial Consent Order, will be presented to the US Court for review and approval later this year, following a public comment period. This agreement is not an admission of liability.

Since 2013, Solvay has been conducting remediation efforts in New Jersey. This includes installing a drinking water treatment system on a municipal well, constructing and operating an offsite pump-and-treat system for impacted groundwater, and enhancing existing onsite treatment systems for impacted groundwater.

As a result of this settlement, Solvay will increase its current provision¹ by around $250 1M at the end of Q2 2023, with $175M cash out in 2024 and the balance over a 30-year period. This provision represents the estimated expense and does not reflect expected recoveries from third-party contributors nor does it reflect potential insurance proceeds, the combination of which could significantly reduce the resultant costs. Solvay confirms that the above amounts were included in estimates of anticipated one-time value creation and de-risking costs, which remain unchanged.

(¹) In Q3 2022, Solvay recorded €93M of environmental provisions reflecting the estimated cost of certain remediation activities in West Deptford, NJ over the next 20 years.