West Sacramento-based Origin Materials Inc. has initiated the startup of its first commercial-scale plant to manufacture zero-carbon plastic in Canada.
Origin (Nasdaq: ORGN) has developed processes to turn wood waste materials into zero-carbon plastic that doesn’t use petroleum products.
"We are excellently positioned to meet the massive customer demand for our renewable, carbon-negative products, as we continue to execute on our mission to enable the world’s transition to sustainable materials," said Origin co-founder and co-CEO John Bissell, in a news release.
In its first-quarter financial report, Origin said it has capacity reservations in excess of $9.3 billion for its products over the next decade.
Origin's product is a drop-in replacement for petroleum in the manufacture of plastics and other materials used to make everything from containers and auto parts to textiles and tires.
Bissell said the plant will be "transformative for the chemical industry and how the world generally makes things."
The first plant, in Sarnia, Ontario, was completed on Jan. 27. The company has been commissioning the plant ever since. The Sarnia location is a $130 million investment.
Origin is also in the process of developing its second manufacturing plant, in Louisiana. That plant is estimated to be a $1.1 billion investment.
Origin is in planning for a third plant, as well as potential licensing agreements with other manufacturers, the company said.
The company said it will use the Origin 1 factory in Canada to fulfill customer demand around qualification and sampling. The Sarnia plant will also develop higher-value products and applications for many products and materials. Origin has agreements with global chemical companies including South Korean industrial conglomerate Hyosung Advanced Materials Corp. and Thailand-based Indorama Ventures, the world's largest producer of PET plastic resins.
Origin already has many high-profile consumer brand companies committed to using its products, including Paris-based international luxury brand company LVMH Moët Hennessy Louis Vuitton, New York-based cosmetics powerhouse Revlon Inc. and PepsiCo Inc. (NYSE: PEP).
Mass volume materials for higher-value products are expected to be produced and sold at world-scale from future plants, Origin said.
The pandemic, supply chain problems and extreme weather stalled the opening of the Sarnia plant.
"The startup of Origin 1 is a testament to the strength of our team in the face of pandemic and related supply-chain headwinds," Bissell said.
He added that the company is now able to deliver precursor chemicals "to industry on a scale never before achieved."
Origin, a 2008 startup, has financial backing from users of plastic materials, including Mitsubishi Group, Nestle SA, Danone SA and Pepsi, all of which are potential customers for Origin’s zero-carbon PET for industrial goods and packaging.
