Origin Materials and Indorama Ventures have signed a strategic memorandum of understanding ("MOU") to explore initiatives related to the rapid commercialization of low carbon bio-based materials. Initiatives include evaluating the use of Indorama Ventures' existing units in the U.S. and making some modifications to commercially produce bio-based materials. Under this arrangement, Indorama Ventures will convert derivatives of Origin Materials' platform chemical CMF (chloromethyl furfural) into a variety of sustainable chemicals and bio-based plastics.
According to the MOU, the companies will also study the potential of working with well-known brands to produce samples using bio-based materials in limited product launches. These materials may be used in packaging, textiles, films and automotive applications. According to Origin, these may include bio-PET, bio-PTA, the advanced bio-based chemical FDCA (furan dicarboxylic acid), and co-polyester, which offers advantages over traditional PET plastics.
The two companies share a strategic interest in the rapid deployment of Origin Materials' carbon negative technology platform, which transforms sustainable wood residues into useful materials. The partnership is expected to increase the value of Indorama Ventures' global petrochemical manufacturing footprint and support the company's 2030 vision to solidify its position as an industry leader in sustainability through the adoption of low-carbon-strength bio-based materials.
We are pleased to partner with Indorama Ventures, the world's largest producer of virgin and recycled PET resins, combining our strengths in technology development, commercial manufacturing and supply chain operations," said Rich Riley, co-CEO of Origin Materials. Our common goal is to drive rapid, meaningful change across the industry by developing new products and exploring ways to transform existing petroleum-based plants into plants that produce low-carbon strength and performance-enhancing bio-based materials. Together, our goal is to help decarbonize the world's materials.
Yash Lohia, Chairman of the ESG Committee at Indorama Ventures, added, "As part of our Vision 2030, we are working to explore and adopt advanced technologies to achieve sustainable development. Strategic partnerships that accelerate the introduction of innovative new technologies play an important role, including the collaboration with Origin Materials. Advancing the commercialization of bio-based material production will create advantages for Indorama Ventures as well as the chemical industry and other industries. We are excited to bring more sustainable solutions to our customers and create a better world together."
