Strategic partnership will produce FDCA from
Origin’s carbon-negative platform for producing chemical
intermediates from sustainable wood residues and Avantium’s YXY®
Technology
Origin Materials, Inc. (“Origin” and “Origin Materials”)
(NASDAQ: ORGN, ORGNW), the world’s leading carbon negative
materials company with a mission to enable the world’s transition
to sustainable materials, and Avantium N.V. (“Avantium”),
(Euronext: AVTX) a leading technology company in renewable
chemistry, today announced a partnership to accelerate the mass
production of FDCA and PEF for use in advanced chemicals and
plastics.
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The partnership aims to bring together the strengths of Origin’s
patented carbon-negative technology platform, which turns the
carbon found in sustainable wood residues into useful materials
including chloromethylfurfural (“CMF”), with Avantium’s YXY®
Technology, which can be used to convert derivatives of Origin’s
CMF into FDCA, the chemical building block for the polymer PEF, at
attractive unit economics.
The partnership represents a potential breakthrough in the
commercialization of cost-competitive and low-carbon PEF, a polymer
with an attractive combination of sustainability and performance
characteristics for packaging including enhanced barrier
properties. The produced PEF is expected to be 100% plant-based,
fully recyclable, have attractive unit economics, and to offer a
significantly reduced carbon footprint, with superior strength,
thermal properties, and barrier properties compared to today’s
widely used petroleum-based materials.
“We are excited to partner with Avantium, a leading innovator
and developer of sustainable chemistry, on a project with
far-reaching impact,” said John Bissell, Origin Co-Founder and
Co-Chief Executive Officer. “Together we aim to bring the value of
FDCA and one of its main applications, PEF, to the industry at
large and to drive decarbonization throughout the supply chain. By
combining Origin’s revolutionary platform, which can produce key
FDCA precursors like CMF from sustainable wood residues, with
Avantium’s YXY® process technology, we aim to transform the
polymers and materials industry. This partnership accelerates our
efforts to bring economical non-food based FDCA and PEF to
market.”
“We are excited to enter into this strategic partnership with
Origin Materials, a leading sustainable materials company and
like-minded partner committed to revolutionizing the chemical and
plastics industry,” said Tom van Aken, CEO of Avantium. “The
technologies of both companies are highly complementary and will
also enable the use of non-edible, renewable feedstocks for the
production of FDCA and PEF, meeting the expectations of brand
owners and consumers worldwide. This supplements the feedstock
options for our technology. We look forward to working together on
our shared ambition to transition the world to large-scale
sustainable materials made from non-fossil resources.”
The partnership includes a licensing agreement providing Origin
with access to relevant parts of Avantium’s process technology for
producing FDCA from Origin’s CMF derivatives at a 100 metric
kilotons per annum scale facility and a conditional offtake
agreement under which Avantium will supply Origin Materials with
FDCA and PEF from its plants to accelerate market development.
Under the terms of the transaction, Avantium received an upfront
payment of €5 million in 2022 and, as a result of signing the
licensing agreement, will receive an additional payment of €7.5
million, and may receive additional payments depending on the
achievement of certain development milestones. Origin expects to
incorporate Avantium's process technology into the supply chain for
product from future plants.
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 Avantium
Avantium is a leading technology development company and a
frontrunner in renewable chemistry. Avantium develops novel
technologies based on renewable carbon sources as an alternative to
fossil-based chemicals and plastics. The company currently has
three technologies at pilot and demonstration phase. The most
advanced technology is the YXY® plant-to-plastics–technology that
catalytically converts plant-based sugars into FDCA
(furandicarboxylic acid), the key building block for the
sustainable plastic PEF (polyethylene furanoate). Avantium has
successfully demonstrated the YXY® Technology at its pilot plant in
Geleen, the Netherlands, and has started construction of the
world's first commercial plant for FDCA in 2022, with planned
large-scale production of PEF in 2024. The second technology is Ray
Technology™ which catalytically converts industrial sugars to
plant-based MEG (mono-ethylene glycol) and plant-based MPG
(mono-propylene glycol): plantMEG™ and plantMPG™. Avantium is
scaling up its Ray Technology™ and the demonstration plant in
Delfzijl, the Netherlands opened in November 2019. The third
technology is called the Dawn Technology™ that converts non-food
biomass into industrial sugars and lignin in order to help
transition the chemicals and materials industries to non-fossil
resources. In 2018, Avantium opened the Dawn Technology™ pilot
biorefinery in Delfzijl, the Netherlands. Avantium also provides
R&D solutions in the field of sustainable chemistry and is the
leading provider of advanced catalyst testing technology and
services to accelerate catalyst R&D. Avantium works in
partnership with like-minded companies around the globe to create
revolutionary renewable chemistry solutions from invention to
commercial scale.
Avantium’s shares are listed on Euronext Amsterdam and Euronext
Brussels (symbol: AVTX). Avantium is incorporated in the Euronext
Amsterdam SmallCap Index (AScX). Its offices and headquarters are
in Amsterdam, the Netherlands.
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 the potential
benefit of a partnership with Avantium, the ability to convert CMF
into FDCA at attractive unit economics, the expectation that the
produced PEF is expected to be 100% plant-based and fully
recyclable, future payments under the licensing agreement between
Avantium and Origin, expectation that Avantium's process technology
will be incorporated into the supply chain for product from future
plants, plans to accelerate market development, Origin Materials’
business strategy, estimated total addressable market, commercial
and operating plans, product development plans, anticipated growth
and projected financial information and ability to realize the
anticipated benefits of any partnerships discussed in the press
release. 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; the uncertainty of the projected
financial information with respect to Origin; disruptions and other
impacts to Origin’s business as a result of outbreaks such as the
COVID-19 pandemic, Russia’s military intervention in Ukraine, the
impact of severe weather events, and other global health or
economic crises; changes in customer demand; and those factors
discussed in the Quarterly Report on Form 10-Q filed with the U.S.
Securities and Exchange Commission on November 3, 2022 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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For Origin Materials
Investors: ir@originmaterials.com
Media: media@originmaterials.com
For Avantium
Media Relations: Caroline van Reedt Dortland, Director
Communications +31-20-5860110 / +31-613400179
mediarelations@avantium.com
Investor Relations: Miriam Wijnands, Manager Investor Relations
+31-20-5860192 / +31-618467012 ir@avantium.com
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