Origin Materials, the world’s leading carbon-negative materials company, has announced that the company has selected a site in Geismar, Louisiana, for the construction of its first world-scale manufacturing facility, Origin 2.
Subject to finalization of economic incentives, the facility would produce carbon-negative materials for making 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 claims that its proprietary technology platform can convert carbon from sustainable wood waste into useful materials while capturing carbon in the process.
The 150-acre facility is expected to generate 500 construction jobs, 200 full-time positions in the area, and 500 to 1,000 indirect local jobs. The factory would convert an estimated 1 million dry metric tonnes of wood wastes into goods for a variety of end markets each year. The facility is scheduled to open in mid-2025.
The projected value of the pending state and local incentives is more than $100 million. In addition, the State of Louisiana is projected to allocate at least $400 million in Private Activity Bond volume caps, pending finalization. Private Activity Bonds are tax-exempt bonds issued by state and municipal governments for the purpose of raising private finance for eligible projects.
John Bissell, Co-Chief Executive Officer of Origin, said that Origin is thrilled to partner with the Governor of Louisiana on this investment in sustainable manufacturing. In refining, forestry and agronomy, feedstock logistics, and chemicals, the local talent is world-class. The facility is located along the Mississippi River, with easy access by boat and rail, as well as a large supply of local wood residue feedstock. The planned incentive package for construction in the area is attractive, and the nearby industrial cluster can provide access to hydrogen, ethylene, water treatment, and other services.
Gov. John Bel Edwards said that he welcomes Origin Materials' plans for a new factory in Louisiana. Their one-of-a-kind process for creating PET products from renewable wood fibers is yet another illustration of how the global trend toward sustainability can spur economic growth and employment development in their state. Their Climate Action Plan's approach to minimizing the severity of climate change while retaining economic competitiveness in a low-carbon future mesh with the company's carbon-negative objective.
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