The partnership will combine the expertise of Origin’s patented carbon-negative technology platform with Avantium’s YXY Technology to transform Origin’s CMF into FDCA
The headquarter of Avantium in Amsterdam. (Credit: Avantium)
Origin Materials and technology company Avantium has signed a deal to expedite the mass production of FDCA (furandicarboxylic acid) and PEF (polyethylene furanoate) for use in advanced chemicals and plastics.
The partnership will combine the expertise of Origin’s patented carbon-negative technology platform with Avantium’s YXY Technology to transform derivatives of Origin’s CMF (chloromethylfurfural) into FDCA at attractive unit economics.
US-based Origin Materials said that the agreement has the potential to commercialise the cost-competitive and low-carbon PEF.
It is claimed as a polymer with better barrier properties and an attractive mix of sustainability and performance attributes for packaging.
The produced PEF is anticipated to be superior in terms of strength, thermal properties, and barrier properties when compared to existing petroleum-based materials, the material firm claimed.
The PEF will be entirely plant-based, fully recyclable, have appealing unit economics, and will offer a significantly reduced carbon footprint.
Origin co-founder and co-chief executive officer John Bissell said: “We are excited to partner with Avantium, a leading innovator and developer of sustainable chemistry, on a project with far-reaching impact.
“Together we aim to bring the value of FDCA and one of its main applications, PEF, to the industry at large and to drive decarbonisation 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.”
Additionally, the deal consists of a licensing agreement that will grant Origin access to the relevant portions of Avantium’s process technology for producing FDCA from Origin’s CMF derivatives at a facility with a capacity of 100 metric kilotons per year.
The partnership also includes a conditional offtake agreement under which Avantium will supply Origin Materials with FDCA and PEF from its plants in order to speed up market development.
As per the terms of the transaction, Avantium secured an upfront payment of €5m in 2022 and will get an additional payment of €7.5m as a result of signing the licencing agreement. The firm may receive additional payments based on the accomplishment of specific development milestones.