In the latest update from renewable chemistry company Avantium N.V., the company reported that its subsidiary Avantium Renewable Polymers has signed another two conditional offtake agreements for the supply of PEF resin to manufacture bottles and films. This brings the total number of such contracts up to four. The current partners include specialty chemical company Toyobo (Japan), specialty polyester film producer Terphane (USA), the beverage bottling company Refresco (Netherlands), and a major global food & beverage brand owner.
The PEF will be produced from the FDCA produced by the company at the flagship plant it intends to build once a positive Final Investment Decision has been made. While that decision has been delayed due to the uncertainties caused by the Coronavirus pandemic, the company continues to negotiate with potential partners on collaboration and funding opportunities.
The offtake commitments signed so far represent 30% of the plant’s annual FDCA production capacity and are subject to a positive FID, financial closing, other customary approvals and party specific conditions.
The FDCA produced by Avantium RNP is based on a proprietary plants-to-plastics YXY technology. The technology has been demonstrated at the pilot plant in Geleen, the Netherlands. The planned flagship plant will be the world’s first commercial FDCA production facility.
The partners will purchase Avantium’s FDCA at agreed price levels for a period of at least five years, depending on both the product application and the specific terms and conditions included in each agreement.
Additionally, Avantium announced that it has signed a collaboration agreement with Carlsberg Group to jointly develop several PEF applications, including the Green Fibre Bottle, with the aim to validate the circularity of the applications, which should lead to additional demand for FDCA from Avantium’s flagship plant. As a further sign of their commitment, Carlsberg has recently joined the PEFerence consortium, a group of organisations collaborating in an EU-funded project that aim to replace a significant share of fossil-based polymers with the 100% plant-based PEF.
“These further developments in commercial commitments bring us closer to making a positive FID for our FDCA flagship plant,” said CEO Tom van Aken, without disclosing any further details.
Avantium will provide a further update on the progress towards the FID in due course.