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US$750m plant for biomass manufacturing

4 March 2022

A sustainable materials company plans to spend at least US$750 million to build a biomass manufacturing facility in Louisiana that will turn wood residue into a chemical used in plastic. Origin Materials, headquartered in West Sacramento, California, said the project is expected to create 200 new jobs.

The plant will use sustainable wood residue to produce plant-based polyethylene terephthalate, or PET. The compound is primarily used in packaging, textiles and apparel. The plant is also expected to produce hydrothermal carbon, which can be used in fuel pellets. Gov. John Bel Edwards welcomed the company’s plans for a new facility in the state.

Construction is expected to start in mid-2023, and the facility should be operational by mid-2025. “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,” Origin Materials Co-Founder and Co-CEO John Bissell said in a statement.

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