American Company Invests $750 Million to Build Bio-based PET Raw Material Factory!

The Center for Biodegradable and Recyclable has learned that recently, US materials company Origin Materials announced that it will invest $750 million to build a second plant (Origin 2) in Geismar, Louisiana, which will produce bio-based materials from wood residues. and chemicals. Origin Materials' first facility (Origin 1) is under construction in Sarnia, Ontario.

According to Origin, the Geismar plant is designed to produce carbon-negative materials used to make polyethylene terephthalate (PET) plastic, which is used in packaging, textiles, apparel and other applications, and will also Production of hydrothermal carbon, which can be used as a substitute for fuel pellets, activated carbon and black carbon.

The plant is currently scheduled to be operational by mid-2025. Once fully operational, the facility will receive approximately 1 million tonnes of dry wood chips annually as feedstock.

A statement released by the Louisiana Department of Economic Development indicated that the feedstock will come in part from the state's lumber mills and forests.

The construction progress of the Geismar Origin 2 factory depends on the time when the local financial subsidies worth more than 100 million US dollars are implemented. In addition, the state of Louisiana allowed the project to issue at least $400 million in private activity bonds. (Private activity bonds are tax-exempt bonds authorized by state and local governments to finance eligible private capital projects.)

Louisiana Governor John Bel Edwards said, "Welcome to Origin's new facility in Louisiana with their unique carbon-negative technology - developing PET products from renewable wood fiber, consistent with our state's climate action policy, limiting climate deterioration, and in the future to maintain economic competitiveness in the context of low carbon emissions.”

John Bissell, co-CEO of Origin, said, "Origin is delighted to have entered into an investment in this environmentally friendly project in Louisiana, which has human resources in refining, forestry and agronomy, feedstock logistics and chemicals. The new facility is located along the Mississippi River. , with the advantages of waterway and railway, it is convenient to transport the local abundant wood slag raw materials, and the local industrial cluster can provide hydrogen, ethylene, sewage treatment and other supporting facilities.”

It is understood that Origin's patented technology platform can subvert the production of various end products, including clothing, textiles, plastics, packaging, auto parts, tires, carpets, toys, etc., with a potential market of about $1 trillion.

By using plant waste to replace plant products such as sugar or corn, Origin can produce these consumer products at a lower cost without impacting the food supply chain. Bio-based feedstocks are less volatile relative to petroleum-based feedstock prices, and the supply and demand market trends Nearly stable.