Aduro Clean Technologies and NexGen Polymers Sign Memorandum of Understanding to Collaborate on HCT Demonstration Plant

Rhea-AI Summary

Aduro Clean Technologies (Nasdaq: ADUR) has signed a Memorandum of Understanding (MOU) with NexGen Polymers to collaborate on developing a demonstration-scale Hydrochemolytic™ Technology (HCT) plant. The partnership leverages NexGen's 30+ years of polymer supply chain expertise to support plant operations and feedstock logistics.

The collaboration aligns with Aduro's scale-up program, which includes the construction of their Next Generation Process (NGP) HCT pilot plant, scheduled for commissioning in Q3 2025. Following successful pilot testing, Aduro plans to advance to a demonstration facility with an initial capacity of 8,000 tons per year.

The MOU comprises three phases, with Phase One being binding and focusing on:

• Feedstock brokerage services and supply chain strategy
• Site selection, evaluation, and preparation
• Regulatory compliance and permitting
• Preliminary engineering and business model development

Positive

• Strategic partnership secures important supply chain and logistics expertise for plant operations
• Clear technology ownership protection in partnership agreement
• Structured phase-gated approach reduces development risks
• Access to NexGen's established infrastructure and logistics network

Negative

• Phases two and three of MOU are non-binding
• Actual demonstration plant deployment timeline not specified
• Commercial success dependent on successful pilot plant results

Insights

Financial Analyst

Aduro's MOU with NexGen represents a strategic acceleration of their commercialization timeline for their Hydrochemolytic Technology. This partnership addresses critical operational bottlenecks in the scale-up process that typically delay cleantech deployment.

The phased implementation structure is particularly noteworthy - only phase one (focusing on feasibility factors) is binding, which limits Aduro's commitment while securing essential expertise from NexGen's 30+ years in polymer logistics. The non-binding nature of phases two and three provides Aduro flexibility while establishing a framework for deeper collaboration if initial results prove promising.

From a developmental perspective, Aduro's technology commercialization pathway is now better defined: NGP pilot plant (Q3 2025) → demonstration plant (8,000 tons/year) → commercial deployment. By initiating demonstration plant planning concurrent with pilot plant construction, they're compressing their timeline to market.

The strategic value extends beyond just operational support - NexGen brings critical infrastructure (warehousing, rail, truck docking) that would typically require significant capital investment. Most importantly, the agreement preserves Aduro's intellectual property rights regardless of improvements developed during the partnership, maintaining their long-term value proposition.

While this represents progress in Aduro's commercialization journey, investors should note that significant technical validation still depends on successful commissioning of the pilot plant in Q3 2025, making this a positive but preliminary development in their pathway to revenue generation.

Chemical Engineer

This partnership strategically addresses the critical scale-up challenges that plague many promising chemical technologies. The transition from laboratory to commercial-scale operations represents the most significant technical hurdle in chemical process development, with many technologies failing during this phase.

Aduro's Hydrochemolytic Technology has transformative potential for plastic waste recycling, utilizing water-based chemistry at relatively low temperatures - a significant advancement over traditional thermal recycling methods that degrade polymer quality. The step-wise approach (pilot → demonstration → commercial) follows best practices in process engineering, with each phase generating critical design data for the next scale.

The 8,000 tons/year demonstration capacity represents a carefully selected intermediate scale - large enough to validate commercial viability while small enough to manage technical risk. NexGen's logistics expertise addresses a frequently overlooked challenge in chemical processing - feedstock heterogeneity. Consistent waste plastic composition is essential for process stability and product quality in chemical recycling.

From a technical perspective, the collaboration on preliminary engineering and business model development will be particularly valuable in defining key process parameters that will determine economic viability. The agreement smartly preserves Aduro's intellectual property ownership while allowing for technical refinements that typically emerge during scale-up operations.

This partnership represents a significant milestone in Aduro's technology commercialization journey, though successful pilot plant operation remains the next critical technical validation point.

Collaboration will support feedstock logistics, site selection and regulatory planning as Aduro plans for demonstration plant deployment

LONDON, Ontario, March 13, 2025 (GLOBE NEWSWIRE) -- Aduro Clean Technologies Inc. (“Aduro” or the “Company”) (Nasdaq: ADUR) (CSE: ACT) (FSE: 9D5), a clean technology company using the power of chemistry to transform lower-value feedstocks, like waste plastics, heavy bitumen, and renewable oils, into resources for the 21^st century, today announced the signing of a Memorandum of Understanding (“MOU”) with NexGen Polymers (“NexGen”). This MOU details a framework for a proposed collaboration to develop a demonstration-scale Hydrochemolytic™ Technology (“HCT”) plant including securing feedstock supply, potential site selection, and plant operations to optimise data generation for the future development of configurable commercial solutions.

NexGen Polymers, a leading supplier and broker of virgin and recycled polymers, brings over 30 years of experience in polymer supply chain management, infrastructure, and logistics. The company specializes in securing, storing, and distributing polymer feedstocks through its extensive logistics network, which includes warehousing, rail, and truck infrastructure. This partnership will leverage NexGen’s expertise to support key operational requirements for Aduro’s planned demonstration facility.

Aduro is currently constructing its Next Generation Process (“NGP”) HCT pilot plant, targeted for commissioning in Q3 2025. This pilot plant will serve as a key scale-up step, generating critical data to support the transition to a larger demonstration plant. With the anticipated successful commissioning and testing of the pilot plant, Aduro plans to advance toward a demonstration-scale facility, initially designed to process 8,000 tons per year.

The MOU and respective collaboration with NexGen align with Aduro’s strategic goals, ensuring its scale-up program is progressing efficiently by implementing the long lead items necessary for the deployment of the demonstration plant concurrently with the buildout of its NGP plant. The collaboration is a natural continuation and ideal fit as Aduro moves toward real-world deployment of its technology and will focus on evaluating critical feasibility factors needed for site selection, logistics, and feedstock supply, including data on material characterization, volume, and cost, setting the stage for the next phase of Aduro’s commercialization strategy.

The MOU is comprised of three stage-gated phases. Phases two and three of the MOU are non-binding and outline a framework for the execution of a potential joint venture agreement as well as a proposed collaboration on the commissioning and operations of a demonstration plant. The technology, including any improvements or modifications made during the proposed joint venture, will remain the sole and exclusive property of Aduro. Phase one is binding between Aduro and NexGen and outlines activities where the parties will collaborate on critical feasibility factors that lay the groundwork for the next demonstration plant, including:

• Feedstock Brokerage Services – Develop a robust supply chain strategy to ensure reliable sourcing of waste polymers. This includes inventory management, securing feedstock agreements, transportation planning, and warehousing necessary to maintain consistent plant operations.
  
• Site Selection, Evaluation, and Preparation – Assess NexGen’s facilities and identify appropriate locations for the demonstration plant. This includes evaluating infrastructure, utilities, zoning regulations, and future expansion potential, as well as ensuring sufficient access for transportation and logistics operations.
  
• Site Permitting, Zoning, and Building Approvals – Address all regulatory and compliance requirements, including zoning approval, building permits, environmental compliance, operational safety, and emissions regulations. This step ensures that the site can legally and efficiently accommodate the demonstration plant as well as any future modifications.
  
• Preliminary Engineering and Business Model Development – Define the demonstration plant’s key design, process, and operational parameters while establishing a commercialization framework for future scaled-up units. This includes evaluating process efficiency, cost structures, and potential licensing or deployment models for broader industry adoption.
  

“Aligned with our strategic objectives, commencement of work on the demonstration plant is a critical step in our path toward commercialization,” said Ofer Vicus, CEO of Aduro Clean Technologies. “NexGen is a strong partner with extensive industry experience and the resources necessary to support and expedite this process. We look forward to collaborating with them as we advance the implementation of our commercialization strategy.”

“At NexGen, we are committed to providing our clients with innovative and sustainable polymer solutions,” said Daniel Peretz, President of NexGen Polymers. “Collaborating with Aduro allows us to explore a next-generation technology that can help bridge the gap between plastic waste and circularity. We look forward to working together to validate its potential at scale.”

About Aduro Clean Technologies

Aduro Clean Technologies is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil; and transform renewable oils into higher-value fuels or renewable chemicals. The Company’s Hydrochemolytic™ technology relies on water as a critical agent in a chemistry platform that operates at relatively low temperatures and cost, a game-changing approach that converts low-value feedstocks into resources for the 21^st century.

About NexGen Polymers

NexGen Polymers is a company with over 30 years of experience in brokering and managing polymer waste streams globally. The company provides infrastructure and logistics services, including warehousing, washing, rail and truck docking, as well as potential space for industrial operations. NexGen’s primary objectives in this collaboration are securing a long-term contract for logistics services, supplying waste plastic feedstock, leasing its industrial site for plant operations, and financially contributing to site development.

For further information, please contact:

Abe Dyck, Head of Business Development and Investor Relations
ir@adurocleantech.com
+1 226 784 8889

KCSA Strategic Communications
Jack Perkins, Senior Vice President
aduro@kcsa.com

Forward-Looking Statements

This news release contains forward-looking statements. All statements, other than statements of historical fact that address activities, events, or developments that the Company believes, expects, or anticipates will or may occur in the future, are forward-looking statements. The forward-looking statements reflect management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking statements. The forward-looking statements in this release include, but are not limited to, Aduro’s construction of its Next Generation Process (NGP) Hydrochemolytic™ Technology (HCT) pilot plant, targeted for commissioning in Q3 2025; that the pilot plant will serve as a key scale-up step for the Company, generating critical data to support the transition to a larger demonstration plant; that with the successful commissioning and testing of the pilot plant, Aduro plans to advance toward a demonstration-scale facility, initially designed to process 8,000 tons per year; that the collaboration is a natural continuation and ideal fit as the Company moves towards real-world deployment of its technology and its intention to focus on evaluating critical feasibility factors needed for site selection, logistics, and feedstock supply, including data on material characterization, volume, and cost, setting the stage for the next phase of Aduro’s commercialization strategy; the expectation that NexGen is a strong partner with extensive industry experience and the resources necessary to support and expedite this process; that the Company will look to collaborate with NexGen as it advances implementation of its commercialization strategy; that the collaboration will allow Aduro to explore a next-generation technology that can help bridge the gap between plastic waste and circularity; and the expectation that the Company will work with NexGen to validate its potential at scale. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and, accordingly, undue reliance should not be put on such statements due to their inherent uncertainty. Important factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, adverse market conditions, delays in constructing the NGP HCT pilot plant, and potential challenges in commissioning the plant by Q3 2025; risks related to generating critical data to support the transition to a larger demonstration plant, and the ability to successfully scale up to a demonstration-scale facility designed to process 8,000 tons per year; risks associated with evaluating critical feasibility factors for site selection, logistics, and feedstock supply, including data on material characterization, volume, and cost; reliance on NexGen’s industry experience and resources to support and expedite the process; potential challenges in collaborating effectively with NexGen to advance the implementation of the commercialization strategy; and risks related to validating the potential of the next-generation technology at scale, including unforeseen technical issues, regulatory hurdles, and other factors beyond the control of the parties. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events, or otherwise, except as required by applicable law.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1744b5c9-ef53-4152-a14b-172d2c07a0f5

FAQ

What is the processing capacity of Aduro's planned HCT demonstration plant (ACTHF)?

The demonstration-scale facility is initially designed to process 8,000 tons per year of feedstock.

When is Aduro's NGP HCT pilot plant expected to be commissioned?

The pilot plant is targeted for commissioning in Q3 2025.

What are the key components of Phase One in the Aduro-NexGen MOU?

Phase One includes feedstock brokerage services, site selection, permitting, and preliminary engineering for the demonstration plant.

How will NexGen Polymers support Aduro's HCT demonstration plant project?

NexGen will provide expertise in polymer supply chain management, infrastructure, logistics, and support in securing feedstock supply and site selection.

What happens to Aduro's technology rights under the NexGen partnership?

The technology, including any improvements made during the proposed joint venture, remains the sole and exclusive property of Aduro.