Origin Materials, Inc. (“Origin” or “Origin Materials”) (NASDAQ:
ORGN, ORGNW), the world’s leading carbon negative materials
company, and Louisiana Governor John Bel Edwards today announced
that, subject to finalization of economic incentives, the company
has selected a site in Geismar, Louisiana, for the construction of
its first world-scale manufacturing facility, Origin 2.
The facility would produce carbon-negative materials used to
make polyethylene terephthalate (“PET”) plastic, which is used in
packaging, textiles, apparel, and other applications, as well as
hydrothermal carbon, which can be used in fuel pellets, as
activated carbon, and as a replacement for carbon black. Origin’s
patented technology platform can turn the carbon found in
sustainable wood residues into useful materials while capturing
carbon in the process.
The 150-acre facility would create an estimated 500 construction
jobs, 200 local full-time positions, and between 500 and 1,000
indirect local jobs. The plant would convert an estimated 1 million
dry metric tons of wood residues each year into products for a wide
range of end markets. The plant is expected to be operational
mid-2025.
The pending state and local incentives are estimated to be worth
more than $100 million. In addition, a Private Activity Bond volume
cap allocation from the State of Louisiana, pending finalization,
is expected in the amount of at least $400 million. Private
Activity Bonds are tax-exempt bonds authorized by state and local
governments for the financing of qualified projects with private
capital.
“Origin is excited to announce this investment in sustainable
manufacturing with the Governor of Louisiana,” said John Bissell,
Co-Chief Executive Officer of Origin. “The local talent is
world-class across refining, forestry and agronomy, feedstock
logistics, and chemicals. The site sits along the Mississippi River
with easy access to barge and rail and plentiful local wood residue
feedstock. The proposed incentive package for building in the area
is compelling and the local industrial cluster can provide access
to hydrogen, ethylene, water treatment and more.”
“I welcome Origin Materials’ plans for a new facility in
Louisiana,” Gov. John Bel Edwards said. “Their unique process of
developing PET products from renewable wood fibers is yet another
example of how the global shift toward sustainability can be a
catalyst for economic investment and job creation in our state. The
company’s carbon-negative mission aligns with our Climate Action
Plan’s approach to limiting the severity of climate change while
maintaining economic competitiveness in a low-carbon future.”
“The demand for ‘net zero’-enabling materials is extremely
strong, and we believe this plant will be instrumental in
addressing demand for our products in the United States and
internationally,” said Bissell. “We are grateful for the
partnership of Louisiana Economic Development, the Baton Rouge Area
Chamber, and Ascension Parish for the support they have provided in
the site selection process. We look forward to working with all
involved and to being a part of the community for years to
come.”
“As Ascension Parish transitions toward a greener future, we
look forward to welcoming Origin Materials to our business
community,” said Ascension Parish President Clint Cointment. “This
project is significant in an emerging bio-based chemical market as
well as an investment in our local labor force.”
“This project points to a future of transformational changes in
the manufacturing of chemicals and plastics,” Baton Rouge Area
Chamber President and CEO Adam Knapp said. “Origin Materials’
decision to locate its largest plant-based plastics operation here
speaks to our region’s continued advantages for workforce and
supply chain, even as technologies change for the future. AEDC and
LED have been excellent partners in their work to support the
company’s decision to locate in the Capital Region."
About Origin Materials
Headquartered in West Sacramento, Origin Materials is the
world's leading carbon negative materials company. Origin’s mission
is to enable the world’s transition to sustainable materials. For
over a decade, Origin has developed a platform for turning the
carbon found in inexpensive, plentiful, non-food biomass such as
sustainable wood residues into useful materials while capturing
carbon in the process. Origin’s patented technology platform can
help revolutionize the production of a wide range of end products,
including clothing, textiles, plastics, packaging, car parts,
tires, carpeting, toys, and more with a ~$1 trillion addressable
market. In addition, Origin’s technology platform is expected to
provide stable pricing largely decoupled from the petroleum supply
chain, which is exposed to more volatility than supply chains based
on sustainable wood residues. Origin’s patented drop-in core
technology, economics and carbon impact are supported by a growing
list of major global customers and investors.
For more information, visit www.originmaterials.com.
About LED
Louisiana Economic Development is responsible for strengthening
the state’s business environment and creating a more vibrant
Louisiana economy. In 2021, LED attracted 64 new economic
development projects representing over 18,100 new direct and
indirect jobs, 9,700 retained jobs and more than $20.6 billion in
new capital investment. LED cultivates jobs and economic
opportunity for the people of Louisiana, and promotes business
opportunity for employers of all sizes. For more information, visit
OpportunityLouisiana.com.
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding Origin
Materials’ business strategy, estimated total addressable market,
ability to address global demand for our products, commercial and
operating plans and product development plans. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of the management of
Origin Materials and are not predictions of actual performance.
These forward-looking statements are provided for illustrative
purposes only and are not intended to serve as, and must not be
relied on as, a guarantee, an assurance, a prediction, or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Origin Materials. These forward-looking
statements are subject to a number of risks and uncertainties,
including that Origin Materials may be unable to successfully
commercialize its products; the effects of competition on Origin
Materials’ business; disruptions and other impacts to Origin
Materials’ business as a result of the COVID-19 pandemic and other
global health or economic crises; changes in customer demand;
failure to realize the anticipated benefits of the business
combination; and those factors discussed in the Quarterly Report on
Form 10-Q filed with the SEC on November 12, 2021 under the heading
“Risk Factors,” and other documents Origin Materials has filed, or
will file, with the SEC. If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Origin Materials presently does not
know, or that Origin Materials currently believes are immaterial,
that could also cause actual results to differ from those contained
in the forward-looking statements. In addition, forward-looking
statements reflect Origin Materials’ expectations, plans, or
forecasts of future events and views as of the date of this press
release. Origin Materials anticipates that subsequent events and
developments will cause its assessments to change. However, while
Origin Materials may elect to update these forward-looking
statements at some point in the future, Origin Materials
specifically disclaim any obligation to do so. These
forward-looking statements should not be relied upon as
representing Origin Materials’ assessments of any date subsequent
to the date of this press release. Accordingly, undue reliance
should not be placed upon the forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220216005502/en/
LED Media Mark Lorando, Communications Director
Mark.Lorando@la.gov 225.342.3437 Ron Thibodeaux, Press Secretary
Ron.Thibodeaux@la.gov 225.342.5145 Origin Materials
Investors: ir@originmaterials.com Media:
media@originmaterials.com
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