Company:Origin Materials

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Short description: Bio-based chemical company


Origin Materials is a carbon negative material company in the chemical industry headquartered in West Sacramento, California. The company’s mission is to enable the world’s transition to sustainable materials.

Origin Materials, Inc.
FormerlyMicromidas, Inc.
TypePublic company
NASDAQ: ORGN
IndustryChemical Industry
Founded2008; 16 years ago (2008) in West Sacramento, California, US
Founders
  • John Bissell
  • Ryan Smith
Headquarters
West Sacramento, California
,
United States
Key people
  • John Bissell
  • Rich Riley
Products
  • Chloromethylfurfural
  • Hydrothermal carbon
  • Levulinic acid
  • Furfural
Websiteoriginmaterials.com

Origin developed a patented process to convert cellulose biomass to the basic chemical building blocks used to make industrial and consumer products. Waste, byproducts, and offcuts from sustainably harvested timber is the preferred feedstock, but agricultural waste, cardboard, and other ligneous biomass can also be used.[1]

Following the Paris Agreement, many companies set tiered goals to reduce their carbon footprint. The first milestones include a 50% reduction in carbon emissions by 2030, with the end goal of achieving net zero by 2050.[2] These ambitious goals are considered “one of the greatest challenges humankind has faced” by the United Nations.[3]  While more than a third of the world’s largest companies are now committed to net zero on paper, most are not on track to concretely achieve those goals.[4][5]

As one of the world’s largest sectors at $5 trillion annually,[6] the chemical industry is also one of the most significant energy consumers and top producers of CO2.[7] Origin Materials is partnering with companies around the world to provide carbon negative materials that will help them meet their carbon reduction goals. Some of Origin’s partners include Nestle, Danone, Pepsi,[8] Mitsubishi, Ford, Revlon, Hyosung,[9] SCGP,[10] Minafin Group,[11] and Solvay.[12] Their first commercial plant was opened in June 2023, and they plan to open five more full-scale plants before 2030.[13]

History

Early Years

In 2008 John Bissell, Ryan Smith, and Casey McGrath founded Micromidas Inc. after graduating from the University of California, Davis. The company initially focused on converting wastewater to PET plastic through a biological process.[14][15] The same year, their team won the EPA P3 (People, Prosperity and the Planet) student design competition, receiving $75k in grant funding.[16]

Micromidas began raising funding in 2010 to begin construction of their pilot plant in West Sacramento.[17] Building on the research of UC Davis Chemistry Professor Mark Mascal, they shifted to a new conversion process. They developed a one-step chemical process to replace the biological process, and utilized cellulose inputs. This change reduced processing time to be within minutes instead of days, and produced additional chemical intermediaries. Origin subsequently procured a series of patent families for this technology.[18]

By 2014 Micromidas had raised over $25 million to build the pilot-scale plant in West Sacramento and had successfully created PET plastic.[19]

Micromidas began doing business as Origin Materials in 2017.[20]

Production

In March, 2017, Danone and Nestlé Waters joined with Origin to form the NaturALL Bottle Alliance. Together, their goal was to provide PET plastic bottles made from bio-based material at commercial scale.[21] Danone and Nestlé are two of the world’s largest bottled water companies. A year later, PepsiCo also joined the NaturALL Bottle Alliance.[22]

In June of 2017, Origin announced Sarnia, Ontario, Canada as the site of its first commercial plant.[23] This plant, known as Origin 1 (O1), would demonstrate their products could be manufactured at a commercial scale, and it would help Origin generate revenue to continue building additional, larger, plants.[18] Construction of O1 began in 2018[24] and experienced some construction delays due to supply chain challenges resulting from the COVID-19 pandemic.

In 2020, Origin committed to the commercial manufacture of the sustainable chemical 5-chloromethyl furfural (CMF). According to Bioplastics Magazine, “5-chloromethyl furfural is a highly flexible raw material for many chemistries including para-xylene, purified terephthalic acid (PTA), and polyethylene terephthalate (PET), as well as numerous commodity and specialty chemicals through its derivatives, including furandicarboxylic acid (FDCA).”[25] Origin’s chemical process produces carbon negative CMF and other valuable chemical products.[26]

In February of 2022, Louisiana Governor John Bel Edwards and Origin Materials announced their second, larger “world-scale” manufacturing facility, Origin 2 (O2), would be built on the 150-acre LED-Certified Parks Geismar site in Ascension Parish, outside Baton Rouge, Louisiana. Construction is expected to commence in 2023, with the facility being mechanically complete in 2025.[27]

In 2022 Origin and Mark Mascal from UC Davis were awarded the EPA Green Chemistry Challenge Award to recognize their innovative technology.[28]

At the end of Q1 2023 Origin announced its first revenue of $1.7 million and signed offtake agreements with companies valued at more than $9.3 billion.[29]

Origin announced it began startup of O1, the world’s first commercial CMF plant, on June 27, 2023,[30] and in July the plant was opened.[31]

Public Company

Following his tenure at Shazam, and its acquisition by Apple, Rich Riley joined Origin Materials in 2020[32] as Co-CEO alongside John Bissell.[33]

In 2020 Artius Acquisition Inc. was formed as a publicly-traded special purpose acquisition company (SPAC). Founded by Charles Drucker (former CEO of WorldPay Inc.) and Boon Sim (formerly Temasek Holdings and Credit Suisse), their mission was to find and merge with an innovative technology business.[34] After considering ten different companies, it selected Origin Materials.[35] In February of 2021, Origin and Artius announced their definitive agreement to combine their businesses.[36] [37] Artius formally approved the combination on June 23, and the companies merged and went public on NASDAQ on June 25th with the ticker symbol “ORGN.”[38][39]

See Also

{{columns-list|* Chemistry:5-Chloromethylfurfural



References

  1. ↑ Vinoski, Jim. "Has Origin Materials Cracked The Code On Carbon-Negative Plant-Based Plastics?" (in en). https://www.forbes.com/sites/jimvinoski/2021/08/31/has-origin-materials-cracked-the-code-on-carbon-negative-plant-based-plastics/. 
  2. ↑ "Net Zero by 2050 – Analysis" (in en-GB). https://www.iea.org/reports/net-zero-by-2050. 
  3. ↑ "For a livable climate: Net-zero commitments must be backed by credible action" (in en). https://www.un.org/en/climatechange/net-zero-coalition. 
  4. ↑ "Nearly All Companies Will Miss Net Zero Goals Without At Least Doubling Rate of Carbon Emissions Reductions by 2030, Accenture Report Finds" (in en). https://newsroom.accenture.com/news/nearly-all-companies-will-miss-net-zero-goals-without-at-least-doubling-rate-of-carbon-emissions-reductions-by-2030-accenture-report-finds.htm. 
  5. ↑ Mendiluce, Maria (2022-11-10). "A Guide to Achieving Net Zero Emissions". Harvard Business Review. ISSN 0017-8012. https://hbr.org/2022/11/a-guide-to-achieving-net-zero-emissions. 
  6. ↑ "Chemicals Market Size, Trends and Global Forecast To 2032". https://www.thebusinessresearchcompany.com/report/chemicals-global-market-report. 
  7. ↑ "Chemical Sector Overview" (in en-GB). https://www.iea.org/energy-system/industry/chemicals. 
  8. ↑ Engel, Linda (2018-09-14). "Danone, Nestlé Waters and Origin Materials welcome PepsiCo to the NaturALL Bottle Alliance" (in en-US). https://renewable-carbon.eu/news/danone-nestle-waters-and-origin-materials-welcome-pepsico-to-the-naturall-bottle-alliance/. 
  9. ↑ Russell, Michelle (2023-03-28). "Hyosung, Origin Materials partner on carbon negative apparel" (in en-US). https://www.just-style.com/news/hyosung-origin-materials-partner-on-carbon-negative-apparel/. 
  10. ↑ "SCGP x Origin Materials to Mutually Develop World-Class Innovation 'Bio-based Plastic from Eucalyptus Woodchip' Transforming Renewable Plants into Bio-PET Plastic, Addressing Sustainability Challenges". https://www.scgpackaging.com/en/news/scgp-x-origin-materials-to-mutually-develop-world-class-innovation-bio-based-plastic-from-eucalyptus-woodchip-transforming-renewable-plants-into-bio-pet-plastic-addressing-sustainability-challenges. 
  11. ↑ "Origin Materials, Minafin Group Launch Manufacturing Initiative for Commercial Plant". https://www.contractpharma.com/contents/view_breaking-news/2023-04-20/origin-materials-minafin-group-launch-manufacturing-initiative-for-commercial-plant/. 
  12. ↑ Jaideep (2021-04-22). "Advanced Bio-Based Raw Materials to Soon Hit the Automotive Industry, Solvay And Origin Materials to Collaborate". https://www.chemanalyst.com/NewsAndDeals/DealsDetails/solvay-and-origin-materials-to-collectively-produce-advanced-bio-based-raw-materials-101. 
  13. ↑ Laird, Karen (2023-06-29). "Origin Materials starts up first commercial manufacturing plant" (in en). https://www.sustainableplastics.com/news/origin-materials-starts-first-commercial-manufacturing-plant. 
  14. ↑ Kane, Elise. "Micromidas Inc. - Sacramento - LocalWiki". https://localwiki.org/sac/Micromidas_Inc.. 
  15. ↑ Herrin, Douglas (2013-11-26). "Advice from Student Entrepreneurs: “Embrace your Chutzpah”" (in en). https://obamawhitehouse.archives.gov/blog/2013/11/26/advice-student-entrepreneurs-embrace-your-chutzpah. 
  16. ↑ "Production of Natural Plastics in Wastewater Treatment | Research Project Database | Grantee Research Project" (in en). https://cfpub.epa.gov/ncer_abstracts/index.cfm/fuseaction/display.abstractDetail/abstract_id/8858/report/0. 
  17. ↑ "Micromidas to test sludge-to-plastic tech" (in en). https://www.cnet.com/culture/micromidas-to-test-sludge-to-plastic-tech/. 
  18. ↑ 18.0 18.1 Skoczek, Marianne (2021-03-31). "Origin Materials: Disrupting the Plastic Bottle Mold" (in en). https://innovate.ucdavis.edu/news/origin-materials-disrupting-plastic-bottle-mold. 
  19. ↑ Howard, Lisa (2016-04-14). "Startups with Roots at UC Davis Pivot as Innovations Become Businesses" (in en-US). https://research.ucdavis.edu/startups-pivot/. 
  20. ↑ Lane, Jim (July 24, 2017). "Top 10 Storylines: Heard on the Floor at the 2017 BIO World Congress". https://www.biofuelsdigest.com/bdigest/2017/07/24/top-10-storylines-heard-on-the-floor-at-the-2017-bio-world-congress/. 
  21. ↑ "Danone and Nestlé Waters Launch NaturALL Bottle Alliance" (in en). 2017-03-02. https://www.nestleusa.com/media/pressreleases/waters-launch-bio-bottles. 
  22. ↑ Mohan, Anne Marie (2018-09-11). "PepsiCo joins NaturALL Bottle Alliance" (in en-us). https://www.packworld.com/news/sustainability/news/13375805/pepsico-joins-naturall-bottle-alliance. 
  23. ↑ Morden, Paul (2018-08-23). "Construction on Origin Materials pioneer plant underway" (in en-US). https://www.sarnialambton.on.ca/construction-on-origin-materials-pioneer-plant-underway. 
  24. ↑ Côté-Paulette, Colin (2018-07-16). "As biochemical companies set up shop in Sarnia, some say a greener future is coming to the region". https://www.cbc.ca/news/canada/windsor/sarnia-lambton-petrochemical-valley-biochemistry-transformation-1.4744454. 
  25. ↑ "Origin Materials develops furan platform based on Chloromethyl Furfural - bioplastics MAGAZINE" (in en). 2017-03-02. https://www.bioplasticsmagazine.com/en/news/meldungen/20200817Origin-Materials-develops-furan-platform-based-on-Chloromethyl-Furfural.php. 
  26. ↑ Jenkins, Scott (2021-06-01). "Converting woody biomass to intermediates allows carbon-negative products" (in en-US). https://www.chemengonline.com/biomass/. 
  27. ↑ "Gov. Edwards, Origin Materials Announce $750 Million Sustainable Materials Facility in Ascension Parish". 2022-02-16. https://gov.louisiana.gov/index.cfm/newsroom/detail/3564. 
  28. ↑ Fell, Andy (2022-06-07). "EPA Presents Green Chemistry Challenge Award to Chemistry Professor" (in en). https://www.ucdavis.edu/climate/news/epa-presents-green-chemistry-challenge-award-chemistry-professor. 
  29. ↑ "Origin Materials, Inc. Reports Financial Results for First Quarter 2023". 2023-05-10. https://investors.originmaterials.com/node/8936/pdf. 
  30. ↑ "Origin Materials Announces Startup of Origin 1, World’s First Commercial CMF Plant" (in en-US). 2023-06-27. https://finance.yahoo.com/news/origin-materials-announces-startup-origin-110000165.html. 
  31. ↑ Irwin, Melanie (2023-07-19). "Origin Materials celebrates Origin 1 start-up" (in en). https://cknewstoday.ca/sarnia/news/2023/07/19/origin-materials-celebrates-origin-1-start-up-gallery. 
  32. ↑ "Rich Riley". https://www.ypo.org/profile/rich-riley. 
  33. ↑ "From Petrochemical to Biomass: A Co-CEO Journey with Origin Materials". 2023-05-01. https://myclimatejourney.substack.com/p/john-bissell-rich-riley. 
  34. ↑ "Artius Acquisition Inc.". https://www.artiuscapital.com/acquisition. 
  35. ↑ "Artius Announces Shareholder Approval of Business Combination With Origin Materials" (in en). 2021-06-23. https://www.businesswire.com/news/home/20210623005949/en/Artius-Announces-Shareholder-Approval-of-Business-Combination-With-Origin-Materials. 
  36. ↑ Guzman, Doris de (2021-02-18). "Origin Materials going public" (in en-US). https://greenchemicalsblog.com/2021/02/18/origin-materials-going-public/. 
  37. ↑ Laird, Karen (2021-02-21). "Origin Materials gets SPAC merger deal" (in en). https://www.sustainableplastics.com/news/origin-materials-gets-spac-merger-deal. 
  38. ↑ "Artius Completes Business Combination With Origin Materials | Cleary Gottlieb" (in en). https://www.clearygottlieb.com/news-and-insights/news-listing/artius-completes-business-combination-with-origin-materials. 
  39. ↑ "Origin Materials, Market Leader in Disruptive Materials Technology, Completes Business Combination With Artius, Creating First Publicly Traded Pure Play Carbon Negative Materials Company". 2021-06-25. https://www.nasdaq.com/press-release/origin-materials-market-leader-in-disruptive-materials-technology-completes-business. 

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