Origin Materials Inc. has a partnership with Thailand-based SCG Packaging PLC to explore licensing Origin's technology to develop a manufacturing plant in Southeast Asia to make its zero-carbon plastic products out of eucalyptus.
West Sacramento-based Origin (Nasdaq: ORGN) has developed technology and processes to turn wood waste materials into plastic that doesn’t use petroleum products.
"Our work with SCGP reflects the power and versatility of our technology platform to capitalize on a wide range of plentiful, local feedstocks," said Rich Riley, co-CEO of Origin Materials, in a news release. "This strategic partnership opens pathways for further scaling our technology, including potentially through a global licensing strategy."
Eucalyptus includes 700 species of trees and shrubs, most of which are fast growing.
Origin said it has successfully processed and tested SCGP’s eucalyptus feedstock in its pilot plant in West Sacramento. Those tests confirmed similar yields to other sustainable wood residues that Origin works with.
The company said the partnership with SCGP will open the path to the development of a manufacturing plant territory covered by the 10 countries in the Association of Southeast Asian Nations. Those countries include Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Origin developed a process to make zero-carbon plastic from wood products rather than petroleum. That product can be used as a drop-in replacement on existing manufacturing equipment used in car parts, tire material, textiles, packaging and construction.
Origin completed its first manufacturing plant over the winter in Canada, and it is expected to begin operations this quarter.
The first Origin manufacturing plant in Sarnia, Ontario, 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 deal with SCGP could be Origin's first licensing agreement.
Origin had signed agreements for capacity reservations to sell $9.3 billion worth of its materials, as of the end of 2022.
The company went public in June 2021.
Origin has long been backed by users of plastic materials, including The 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.
