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Origin Materials to invest $750 mn in new manufacturing facility in US

22 Feb '22
3 min read
Pic: Shutterstock
Pic: Shutterstock

Gov John Bel Edwards and Origin Materials, a carbon-negative materials company committed to leading the global transition to sustainable materials, have announced that the company plans an investment of at least $750 million to develop a biomass manufacturing facility in Ascension Parish that will result in 1,057 new direct and indirect jobs.

The plant in Geismar will utilise sustainable wood residue – sourced partly from Louisiana’s timber mills and managed forests – to produce plant-based polyethylene terephthalate (PET) used in packaging, textiles, apparel and other applications. Hydrothermal carbon, which can be used in fuel pellets, also will be produced at the site. Made with renewable feedstocks, Origin’s patented technology platform is designed to reduce the carbon emitted during the production of widely used products ranging from food and beverage containers to parts for the automotive industry, according to a press release by the government.

The project will create 200 new direct jobs with an average annual salary of more than $90,000 plus benefits. Louisiana Economic Development estimates an additional 857 indirect jobs will result in Louisiana’s capital region. The company estimates 500 construction jobs will result at the peak of development for the new facility. The plant will be located on an LED Certified Site – the 150-acre Parks Geismar site in Ascension Parish – signifying that it has been deemed development-ready after an extensive review. The company expects construction to begin in mid-2023 and for the plant to be mechanically completed and operational by mid-2025.

To secure the project, the State of Louisiana is offering Origin Materials a competitive incentive package that includes the services of LED FastStart, ranked the No. 1 state-wide workforce development program in the nation for the past 12 years. Additionally, the company would be eligible for a $6 million performance-based award to be paid out over six years, to reimburse site infrastructure costs. The company is also expected to utilise the state’s Quality Jobs and Industrial Tax Exemption programmes.

“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,” Gov. John Bel Edwards, said in a statement.

“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. We are grateful for the partnership of Louisiana Economic Development, the Baton Rouge Area Chamber and Ascension Parish for the support they have provided in the site selection process. The local talent is world-class across refining, forestry and agronomy, feedstock logistics and chemicals. The site sits along the Mississippi River with easy access to barge and rail and plentiful local wood residue feedstock. The proposed incentive package for building in the area is compelling and the local industrial cluster can provide access to hydrogen, ethylene, water treatment and more,” Origin Materials co-founder and co-CEO, John Bissell, said.

Fibre2Fashion News Desk (GK)

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