Origin Materials, Inc. (“Origin,” “Origin Materials,” or the “Company”) (NASDAQ: ORGN, ORGNW), the world’s leading carbon negative materials company with a mission to enable the world’s transition to sustainable materials, and Sustainea Bioglycols (“Sustainea”), a joint venture between Braskem (NYSE: BAK) and Sojitz Corporation, today announced a strategic partnership centered on advanced bio-based materials produced using Origin’s technology platform and Sustainea’s bio-based glycol products and market expertise.
As part of the partnership, Sustainea signed two multi-year capacity reservation agreements to purchase renewable chemicals from Origin Materials, including bio-based PTA and bio-based FDCA. PTA is a fundamental feedstock for a broad variety of market applications, including PET polyester packaging, textiles, clothing, plastics, car parts, tires, carpeting, and toys. FDCA is a raw material whose commercial applications include surfactants, epoxy resins, and the next-gen polymer PEF (polyethylene furanoate).
“We are thrilled to partner with Sustainea, a joint venture formed by two innovative global companies: Braskem, the largest thermoplastic resin producer in the Americas and a global pioneer in biopolymers, and Sojitz, a Japan-oriented global trading company with wide-ranging market networks and a strong presence in Asia,” said Origin Materials Co-CEO Rich Riley. “Through Sustainea, Braskem and Sojitz aim to be the global leader in bioMEG production. Since bioMEG and bio-PTA are both necessary for making 100% bio-based PET, we are strongly aligned to create a low-carbon future for polymers, including bio-PET and advanced bio-based polymers integrating FDCA. We are excited about this powerful strategic partnership on the cutting edge of renewable materials.”
Origin expects to produce bio-based FDCA and bio-based PTA using its patented technology platform, which turns the carbon found in sustainable wood residues into useful products while capturing carbon in the process.
“We are very excited to join forces with Origin on the pathway to a low carbon future,” stated Gustavo Sergi, CEO of Sustainea. “Bringing to the market bioMEG and bioPET has always been our ambition and the partnership with Origin represents an important step towards this goal. The polyester and PET markets grow 3.5 million tons every year, so we have an important mission to develop our operation to supply the industry as soon as possible. From textiles to bottles, our bioMEG and bioPET will be there to be quickly absorbed by the market as a drop-in solution. Finally, these biopolymers are not only bio-based but also fully recyclable. This will contribute to a circular economy and to the reduction of CO2 emissions.”
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, fuels, 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.
About Sustainea Bioglycols
Sustainea is a dynamic and innovative company focused on sustainable chemistry. Established as a joint venture between Braskem and Sojitz Corporation, Sustainea is a company born with the desire to be the global leader in bio-MEG and transform the bottles and textiles market through innovation in renewable chemicals, generating a positive impact for everyone. Sustainea’s business plan includes the construction of three industrial plants with annual production capacity of 700,000 tons of bio-based MEG, with the startup of the first plant in 2027. With a strong emphasis on research and development, Sustainea’s commitment to environmental stewardship and their innovative approach to creating renewable materials aligns perfectly with the goal of developing sustainable alternatives to conventional plastics. Headquartered in the United States, with an office in São Paulo, Brazil, Sustainea has professionals with in-depth knowledge of the chemical industry and renewable chemicals business.
Source
Origin Materials, press release, 2023-08-08.
Supplier
Braskem
Origin Materials
Sojitz Corporation
Sustainea Bioglycols
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