Subject to finalisation of economic incentives, the site would produce carbon-negative materials used to make polyethylene terephthalate (PET) plastic, which is used in apparel, textiles, packaging, and other applications, as well as hydrothermal carbon, which can be used in fuel pellets, as activated carbon, and as a replacement for carbon black.
Origin says its patented technology platform can turn the carbon found in sustainable wood residues into useful materials while capturing carbon in the process.
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By GlobalDataBased out of West Sacramento, Origin Materials, Inc. has announced plans for the construction of its first world-scale manufacturing facility – Origin 2 – in Geismar, Louisiana.
The 150-acre facility would create an estimated 500 construction jobs, 200 local full-time positions, and between 500 and 1,000 indirect local jobs. The plant would convert an estimated 1m dry metric tonnes of wood residues each year into products for a wide range of end markets. It is expected to be operational mid-2025.
The pending state and local incentives are estimated to be worth more than US$100m. In addition, a Private Activity Bond volume cap allocation from the State of Louisiana, pending finalisation, is expected in the amount of at least $400m. Private Activity Bonds are tax-exempt bonds authorised by state and local governments for the financing of qualified projects with private capital.
“The demand for ‘net zero’-enabling materials is extremely strong, and we believe this plant will be instrumental in addressing demand for our products in the United States and internationally,” John Bissell, co-CEO of Origin, says.
Louisiana Governor John Bel Edwards, adds: “I welcome Origin Materials’ plans for a new facility in Louisiana. Their unique process of developing PET products from renewable wood fibres is yet another example of how the global shift toward sustainability can be a catalyst for economic investment and job creation in our state. The company’s carbon-negative mission aligns with our Climate Action Plan’s approach to limiting the severity of climate change while maintaining economic competitiveness in a low-carbon future.”
