Benzinga | Nov 8, 2021 07:04AM EST

Origin Materials And Kolon Form Strategic Partnership To Industrialize Advanced Carbon-Negative Chemicals And Materials

Origin Materials, Inc. ("Origin" or "Origin Materials") (NASDAQ:ORGN, ORGNW))), the world's leading carbon negative materials company with a mission to enable the world's transition to sustainable materials, and Kolon Industries, Inc. ("Kolon," "Kolon Industries"), a global leader in chemicals and materials, today announced a strategic partnership to industrialize novel polymers and drop-in solutions for select applications, with an initial focus on automotive applications.

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This strategic partnership aims to rapidly develop and industrialize new sustainable carbon-negative products based on Origin Materials' patented technology platform, leveraging Kolon's polymerization expertise, application development and supply chain strength. As part of the partnership, Kolon signed a multi-year capacity reservation agreement to purchase sustainable carbon-negative materials from Origin Materials.

The partnership includes co-development aimed at commercializing polyethylene furanoate ("PEF"), a polymer with an attractive combination of performance characteristics for packaging and other applications, including enhanced barrier properties when compared with polyethylene terephthalate ("PET"), degradability, and other qualities. Origin Materials' technology platform is expected to produce cost-competitive, sustainable, carbon-negative furandicarboxylic acid ("FDCA"), the primary precursor to PEF. Kolon Industries' deep polymer expertise in novel FDCA-based polymers, including PEF, is expected to introduce world-class carbon-negative polymers and chemistries.

Origin Materials and Kolon believe that Origin's platform, together with Kolon's demonstrated expertise in polymer chemistry, manufacturing and application development, can accelerate the deployment of environmentally sustainable products and create profitable, competitively advantaged business opportunities for both companies.

"Origin is a pioneer and a global leader in carbon negative chemical technology, and Kolon Industries is a world leader in chemicals and polymers," said Sung Han, Chief Technology Officer of Kolon Group. "Therefore, the collaboration between these two companies will ensure both carbon-negative and cost-effective Sustainable Polymer Economy, which will further enable the realization of the Circular Economy."

"Kolon is a highly innovative company and a world leader in polymer development," said John Bissell, Co-CEO of Origin Materials. "We are thrilled to work together to enable our shared vision for a net zero material economy. This partnership reflects both companies' commitment to sustainable innovation."