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Origin Materials Announces Mechanical Completion of Origin 1 Manufacturing Plant
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Rhea-AI Sentiment
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Rhea-AI Summary
Origin Materials announced the mechanical completion of its first commercial plant, Origin 1, in Sarnia, Ontario. This milestone aligns with their timeline for commissioning, expected to support start-up by late Q1 2023. The plant will produce sustainable materials to meet over $9 billion in total customer demand for carbon-negative products. The company aims to decarbonize materials by converting biomass into useful products like chloromethylfurfural. Following start-up, Origin plans to provide guidance on revenue and EBITDA for full-year 2023 during its next earnings call.
Positive
Mechanical completion of Origin 1 aligns with projected timeline.
Company anticipates meeting over $9 billion in customer demand for carbon-negative materials.
Plant expected to produce sustainable materials for diverse applications.
Negative
None.
Origin’s first commercial plant anticipated to complete commissioning to support start-up around the end of Q1 2023 with start-up beginning shortly thereafter
WEST SACRAMENTO, Calif.--(BUSINESS WIRE)--
Origin Materials, Inc. (“Origin,” “Origin Materials,” or the “Company”) (NASDAQ: ORGN, ORGNW), the world’s leading carbon negative materials company with a mission to enable the world’s transition to sustainable materials, today announced the mechanical completion of Origin 1, the Company’s first commercial manufacturing plant, in-line with the previously disclosed timeline.
As part of mechanical completion, the plant's critical mechanical systems have been successfully installed and commissioning has begun. Work onsite will continue, including electrical work, adding new equipment, and further refining technology.
“The mechanical completion of Origin 1, our first commercial plant, is an important milestone in our mission to enable the world’s transition to sustainable materials,” said John Bissell, Co-Founder and Co-CEO of Origin Materials. “I’m proud of how our team has executed as we draw closer to commercial production to meet over $9 billion in total customer demand for our carbon-negative materials. What we’ve been able to accomplish to date, despite the pandemic and related supply-chain headwinds, demonstrates the capability, efficiency, and efficacy of our project team. I’d also like to express our gratitude to BioIndustrial Innovation Canada, the Sarnia-Lambton community, Sarnia's mayor, Mike Bradley, the Honorable Bob Bailey, the Honorable Marilyn Gladu, along with support from Innovation, Science and Economic Development Canada (“ISED”), for their partnership and support. As we look ahead, we are excited to start up the plant, begin commercial production, deliver product to our customers, and take the next step in our journey to decarbonize the world’s materials.”
Work at the plant continues following this key achievement, with plant commissioning to support start-up anticipated to be complete around the end of Q1 2023 and start-up beginning shortly thereafter. Origin 1 is expected to start to address growing customer demand for the Company’s renewable materials and allow customers to qualify products and applications beyond PET. The Company expects to provide guidance on revenue, EBITDA, and other financial metrics for full year 2023 on its next earnings call.
About Origin 1
Origin 1 is located in Sarnia, Ontario, Canada. This commercial-scale plant is anticipated to produce sustainable materials including chloromethylfurfural (“CMF”), which can subsequently be converted into high-performance products used in packaging, textiles, apparel, automotive, and other applications, as well as hydrothermal carbon (“HTC”). HTC can be used in fuel pellets, as activated carbon, and as a replacement for carbon black. Origin’s patented technology platform can turn the carbon found in sustainable wood residues into useful materials while capturing carbon in the process. The plant is expected to be able to convert an estimated 25,000 dry metric tons of biomass each year into products for a wide range of end markets.
About Origin Materials
Headquartered in West Sacramento, Origin Materials is the world's leading carbon negative materials company. Origin’s mission is to enable the world’s transition to sustainable materials. For over a decade, Origin has developed a platform for turning the carbon found in inexpensive, plentiful, non-food biomass such as sustainable wood residues into useful materials while capturing carbon in the process. Origin’s patented technology platform can help revolutionize the production of a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tires, carpeting, toys, and more with a ~$1 trillion addressable market. In addition, Origin’s technology platform is expected to provide stable pricing largely decoupled from the petroleum supply chain, which is exposed to more volatility than supply chains based on sustainable wood residues. Origin’s patented drop-in core technology, economics and carbon impact are supported by a growing list of major global customers and investors.
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Origin Materials’ business strategy, estimated total addressable market, anticipated customer demand for Origin’s carbon-negative materials, budget and timelines for the commissioning and startup of Origin 1, ability to enter new end-markets, ability to provide stable pricing, ability to develop new product categories, commercial and operating plans, product development plans, anticipated growth and projected financial information, ability to realize the anticipated benefits of any partnerships discussed in the press release and estimated production volume. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Origin Materials and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Origin Materials. These forward-looking statements are subject to a number of risks and uncertainties, including that Origin Materials may be unable to successfully commercialize its products; the effects of competition on Origin Materials’ business; the uncertainty of the projected financial information with respect to Origin; disruptions and other impacts to Origin’s business as a result of the evolving COVID-19 pandemic, Russia’s military intervention in Ukraine, the impact of severe weather events, and other global health or economic crises; changes in customer demand; and those factors discussed in the Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”) on November 3, 2022 under the heading “Risk Factors,” and other documents Origin Materials has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Origin Materials presently does not know, or that Origin Materials currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Origin Materials’ expectations, plans, or forecasts of future events and views as of the date of this press release. Origin Materials anticipates that subsequent events and developments will cause its assessments to change. However, while Origin Materials may elect to update these forward-looking statements at some point in the future, Origin Materials specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Origin Materials’ assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
