© Reuters. FILE PHOTO: The logo of Belgian chemical group Solvay is seen at its headquarters in Brussels, Belgium, July 29, 2015. REUTERS/François Lenoir/File Photo
BRUSSELS (Reuters) – The US subsidiary of the Belgian chemical company Solvay (EBR:) has entered into a deal with the New Jersey Department of Environmental Protection (NJDEP) to settle some claims related to drinking water pollution caused by one of its plants, Solvay announced Wednesday.
“Under the terms of the agreement, Solvay will pay NJDEP $75 million for natural resource damages (NRDs) and $100 million to fund NJDEP PFAS remediation projects in areas of New Jersey near the company’s West Deptford site,” the company said in a statement.
The company will also allocate $214 million for water quality and fouling testing around the plant and for “full remediation activities.”
Per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals,” are the collective name for a large group of fluorinated compounds. It does not degrade in the environment or in the human body and is resistant to water and grease and has been cited as a possible cause of cancer and other diseases.
“As a result of this settlement, Solvay will increase its current appropriation by approximately $250 million at the end of the second quarter of 2023, with $175 million in cash in 2024 and the balance over 30 years,” the company said.
The agreement does not mean Solvay is acknowledging its wrongdoing, the company said, adding that the deal still needs to be approved by a court later this year.
Solvay CEO Ilham Qadri said in the statement that in 2021 the company has shifted its West Deptford plant toward using other types of chemicals.