Carbon-negative and green technology manufacturer Origin Materials Inc. said severe weather has slightly delayed the opening of its first large-scale manufacturing plant.
West Sacramento-based Origin (Nasdaq: ORGN) is constructing the plant in Sarnia, Ontario, which is at the southern tip of Lake Huron and across the St. Clair River from Michigan.
“Barring any further unforeseen circumstances, Origin expects the plant to be mechanically complete in January 2023,” Origin said in a news release.
Sarnia is about 200 miles west of Buffalo, New York, which was buried under a massive snowstorm that shut that city down for six days over the Christmas holiday.
Origin uses patented techniques to make renewable extracts from wood that replace petroleum to make plastic.
The company’s first manufacturing plant had been expected to be completed by the end of this year and begin operating early next year.
Origin said all the equipment necessary to finish the plant is on the site in Sarnia, and it will be installed once weather conditions subside.
The company anticipates commissioning the Sarnia manufacturing site in the first quarter, with the beginning of production starting in the second quarter.
The Sarnia location was chosen for its ease of access to wood products and transportation.
Origin's product is a drop-in replacement for petroleum in the manufacture of PET plastic, which is the most recycled plastic on the planet. The company’s products are being sought by manufacturers of everything from carpet and textiles to packaging and toys.
Origin has financial backing from Mitsubishi Group, Nestle SA, Danone SA and PepsiCo Inc. (Nasdaq: PEP), all of which are potential customers for Origin’s zero-carbon PET for industrial goods and packaging.
The manufacturing plant in Canada is about a $130 million investment. Origin is also in the process of developing a second plant, to be completed mid-2025 in Louisiana, and a third to begin operating in 2027.
The plant in Louisiana will be a $1 billion investment. The third plant will also be a $1 billion effort, Origin co-CEO John Bissell has said. He's anticipated that all following plants will be on the larger scale in the $1 billion range to meet demand from companies all over the world seeking to lower their carbon footprint.
As of the third quarter, Origin already had more than $8 billion in capacity reservations for its product over the next decade.
The company went public in June 2021.
