Origin Materials announces Louisiana as location for second manufacturing plant

Origin Materials has announced plans to build a manufacturing facility in Geismar, Louisiana.

The carbon negative materials company, along with Louisiana Governor, John Bel Edwards, revealed, subject to finalization of economic incentives, the company has selected the site for the construction of its first world-scale manufacturing facility, Origin 2.

The facility would produce carbon-negative materials used to make polyethylene terephthalate (“PET”) plastic, which is used in packaging, textiles, apparel, and other applications, as well as hydrothermal carbon, which can be used in fuel pellets, as activated carbon, and as a replacement for carbon black. Origin’s patented technology platform can turn the carbon found in sustainable wood residues into useful materials while capturing carbon in the process.

The 150-acre facility would create an estimated 500 construction jobs, 200 local full-time positions, and between 500 and 1,000 indirect local jobs. The plant would convert an estimated 1 million dry metric tons of wood residues each year into products for a wide range of end markets. The plant is expected to be operational mid-2025.

The pending state and local incentives are estimated to be worth more than $100 million. In addition, a Private Activity Bond volume cap allocation from the State of Louisiana, pending finalization, is expected in the amount of at least $400 million. Private Activity Bonds are tax-exempt bonds authorized by state and local governments for the financing of qualified projects with private capital.

“Origin is excited to announce this investment in sustainable manufacturing with the Governor of Louisiana,” said John Bissell, Co-Chief Executive Officer of Origin. “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.”

“I welcome Origin Materials’ plans for a new facility in Louisiana,” Gov. John Bel Edwards said. “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.”

“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,” said Bissell. “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. We look forward to working with all involved and to being a part of the community for years to come.”

“As Ascension Parish transitions toward a greener future, we look forward to welcoming Origin Materials to our business community,” said, Ascension Parish President, Clint Cointment. “This project is significant in an emerging bio-based chemical market as well as an investment in our local labour force.”

“This project points to a future of transformational changes in the manufacturing of chemicals and plastics,” added, Baton Rouge Area Chamber President and CEO, Adam Knapp. “Origin Materials’ decision to locate its largest plant-based plastics operation here speaks to our region’s continued advantages for workforce and supply chain, even as technologies change for the future. AEDC and LED have been excellent partners in their work to support the company’s decision to locate in the Capital Region.”

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