Origin Materials Unveils Engineering and Design Innovation in Its Manufacturing of Tethered PET Beverage Caps

Rhea-AI Summary

Origin Materials (NASDAQ: ORGN) has unveiled innovative tethered PET beverage caps, addressing the EU Single-Use Plastic Directive and potential global regulations. These caps offer several advantages:

• Enable mono-material packaging for easier recycling
• Compatible with virgin or 100% recycled PET
• Allow for lighter packaging and extended product shelf life
• Feature a user-friendly design angling away from the mouth

Origin's PET caps are positioned to serve the $65 billion caps and closures market. The company's PCO 1881-compatible caps will be available in Q4 2024, with tethered versions following later.

Positive

• Innovative tethered PET caps align with EU regulations and potential global requirements
• Caps enable mono-material packaging, improving recycling efficiency
• Compatible with virgin and 100% recycled PET, enhancing sustainability
• Positioned to serve the $65 billion caps and closures market
• PCO 1881-compatible caps scheduled for commercial availability in Q4 2024

Negative

• None.

Insights

Product Development Specialist

Origin Materials' new tethered PET beverage caps represent a significant innovation in the packaging industry. The design addresses key environmental concerns and regulatory requirements, particularly the EU Single-Use Plastic Directive. The caps offer several advantages:

• Mono-material packaging, simplifying recycling
• Compatibility with virgin or 100% recycled PET
• Lightweight design
• Extended product shelf life
• User-friendly angle away from the mouth

While this innovation aligns with sustainability trends, its market impact may be initially. The $65 billion caps and closures market is vast and adoption will depend on regulatory pressures and consumer preferences. Investors should monitor the commercial rollout in Q4 2024 to gauge market acceptance and potential revenue impact.

Environmental Policy Analyst

Origin's tethered PET caps are a timely response to growing environmental regulations, particularly the EU Single-Use Plastic Directive. This proactive approach positions the company well for potential similar regulations in other regions. The mono-material design is a significant step towards circular economy goals, addressing a major recycling challenge.

However, it's important to note that while this innovation improves recyclability, it doesn't address the broader issue of plastic consumption. The true environmental impact will depend on:

• Adoption rates by beverage companies
• Consumer behavior in properly recycling these products
• The overall reduction in plastic waste achieved

Investors should consider both the potential market growth from regulatory compliance and the long-term sustainability implications of this technology.

Market Research Analyst

Origin's tethered PET caps present a compelling market opportunity. The timing aligns with the EU directive, potentially giving Origin a first-mover advantage. Key market considerations include:

• Market size: The $65 billion caps and closures market offers significant potential
• Regulatory tailwind: EU regulations may drive rapid adoption, with other regions likely to follow
• Competitive landscape: Early entry could secure partnerships with major beverage companies
• Consumer acceptance: The user-friendly design may aid consumer adoption

However, market penetration will depend on pricing, production capacity and the speed at which beverage companies transition. The Q4 2024 commercial availability provides a timeline for investors to monitor initial market reception and adoption rates.

Origin caps make recycling easier with “mono-material” containers, can be made with unmodified virgin PET plastic or 100% recycled PET plastic, enable lighter packaging, and extend product shelf life

Tethers keep caps connected to bottles and out of the environment

Origin’s design offers excellent user experience, angling cap away from the mouth, not toward it

WEST SACRAMENTO, Calif.--(BUSINESS WIRE)-- Origin Materials (“Origin”) (NASDAQ: ORGN, ORGNW), a technology company with a mission to enable the world’s transition to sustainable materials, today revealed engineering and design innovations in its manufacturing of tethered PET caps, the first tethered PET caps ever made.

Origin tethered PET beverage cap (Photo: Business Wire)

“The EU Single-Use Plastic Directive, which came into effect last month, mandates that caps stay connected to bottles throughout the European Union,” said John Bissell, Origin Co-Founder and Co-CEO. “Our PET cap innovations are perfectly suited for that regulatory environment—and frankly any environment. We expect many other regions to introduce their own tethered beverage cap requirements as well, following the example of the EU. With our leading PET cap technology and manufacturing systems, we are extremely well positioned to address a $65 billion caps and closures market that consumes billions upon billions of caps per year which today cannot be recycled into new caps, only downcycled.”

Bissell added: “If you’re going to keep caps connected to bottles, the logical thing to do is make the cap and the bottle from the same material: PET. Otherwise recycling centers face the problem of separating tethered HDPE or polypropylene caps from PET bottles. With our solution, caps and bottles can be recycled together easily with no need to separate. That’s a real breakthrough for recycling circularity because it increases purity and keeps valuable, high-performing PET plastic in the loop.”

The tethered PET cap complements Origin’s previously announced PET closure, which is the world’s lightest CSD (carbonated soft drink) cap compatible with the PCO 1881 neck finish and the first PET cap produced with commercial-scale equipment. Origin’s PET caps can be made with any type of PET plastic, whether virgin PET, recycled PET (rPET), or bio-based PET.

“Our patent-pending tethered cap design is simple, clever, and user-friendly,” said Bissell. “We use the threads of the PET cap and bottle to lock the cap into place, angled away from the mouth, not toward it. We are combining the performance and sustainability advantages of our PET caps – recyclability, shelf-life extension, lightweighting, ability to use recycled PET, and enablement of mono-material packaging – with an excellent user experience. We have already seen extremely strong interest in this welcome addition to our PET cap product line.”

Origin’s PCO 1881-compatible caps will be commercially available beginning in Q4 2024, with PCO 1881-compatible tethered caps to follow afterward. In conjunction with world-class partners, we are solving the most difficult sustainability challenges, in alignment with our core mission to help transition the world to sustainable materials.

To learn more about Origin’s PET caps and closures, visit our website or contact commercialorder@originmaterials.com.

About Origin Materials

Origin is a leading technology company with a mission to enable the world’s transition to sustainable materials. Our innovations include all-PET caps and closures that bring recycling circularity and enhanced performance to a ~$65 billion market, specialty materials, and our patented biomass conversion platform that transforms carbon into sustainable materials for a wide range of end products addressing a ~$1 trillion market. Origin’s technology, economics, and carbon impact are supported by a growing list of major global customers and investors. For more information, visit www.originmaterials.com.

Cautionary Note on Forward-Looking Statements

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, range of products on which Origin Materials’ caps and closures solution may be used, anticipated performance and recycling circularity improvements and ability to derive them across various products, when Origin’s PCO 1881-compatible caps and other cap formats and features, including tethers, will be available or will comply with current or future regulatory requirements in the EU and elsewhere, estimated total addressable market and how much of that market Origin’s PET caps and closures will address. 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 military conflict, 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 on May 14, 2024 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806466830/en/

Origin Materials

Investors: ir@originmaterials.com

Media: media@originmaterials.com

Source: Origin Materials

FAQ

What are the key features of Origin Materials' new tethered PET beverage caps?

Origin Materials' (ORGN) new tethered PET beverage caps enable mono-material packaging for easier recycling, are compatible with virgin or 100% recycled PET, allow for lighter packaging, extend product shelf life, and feature a user-friendly design angling away from the mouth.

When will Origin Materials' PCO 1881-compatible caps be commercially available?

Origin Materials (ORGN) announced that their PCO 1881-compatible caps will be commercially available beginning in Q4 2024, with PCO 1881-compatible tethered caps to follow afterward.

How do Origin Materials' tethered PET caps address EU regulations?

Origin Materials' (ORGN) tethered PET caps comply with the EU Single-Use Plastic Directive, which mandates that caps stay connected to bottles throughout the European Union. The caps are designed to meet these regulatory requirements while offering sustainability benefits.

What market opportunity does Origin Materials see for its tethered PET caps?

Origin Materials (ORGN) sees an opportunity in the $65 billion caps and closures market, which consumes billions of caps per year. The company's tethered PET caps address regulatory requirements and sustainability concerns, positioning them well in this market.