The Louisiana State Bond has approved the issuance of up to $1.5 billion of tax-exempt bonds for the financing of Origin 2 – the first industrial-scale manufacturing facility of Origin Materials, which will turn solid waste feedstocks into carbon negative materials.

Over the past decade, Origin, headquartered in West Sacramento, California, has developed a platform for turning the carbon found in inexpensive, plentiful, non-food biomass such as sustainable wood residues into useful materials, while capturing carbon in the process. Origin’s patented technology platform can help revolutionise the production of a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tyres, carpeting, toys and more, with an addressable market of around $1 trillion.

In addition, Origin’s technology platform is expected to provide stable pricing largely decoupled from the petroleum supply chain, which is exposed to more volatility than supply chains based on sustainable wood residues. Origin’s patented drop-in core technology, economics and carbon impact are supported by a growing list of major global customers and investors.

 To be located in Geismar, Louisiana, Origin 2 will create an estimated 500 construction jobs, 200 local full-time positions and between 500 and 1,000 indirect local jobs. The plant will convert an estimated 1 million dry metric tons of wood residues each year into products for a wide range of end markets. Front end design of Origin 2 is underway with detailed engineering set to begin in 2023. Origin has previously disclosed that its Geismar plant is expected to cost approximately $1.1 billion and it is expected to be operational mid-2025.

“The availability of this funding to support the build-out of the plant will strengthen our ability to create local jobs, and to meet growing demand for our products in the United States and internationally,” said John Bissell, co-founder and co-chief executive officer of Origin.

www.originmaterials.com