The plant, for which front end engineering and design (FEED) was completed earlier this year, is taking shape in the Chemie Park Delfzijl at Farmsum in the Netherlands. By meeting the key conditions for launching production, CEO Tom van Aken said Avantium has reached a “pivotal point” in its drive to commercialize the next-generation plant-based plastic, which will help accelerate the transition to the circular economy.

Subsidiary Avantium Renewable Polymers has signed a sub-leasehold agreement with Groningen Seaports for land to build and operate the plant. The company has also agreed a multi-year commercial polymerization pact with Portuguese specialty polyester supplier Selenis and a strategic supply agreement with French agricultural cooperative Tereos covering the purchase of 100% bio-based high fructose syrup to be used as feedstock.

Cas König, CEO of Groningen Seaports, said the new commercial-scale PEF facility will significantly contribute to the development of the sustainable and circular industrial cluster in the northern region of the Netherlands, which no longer depends on fossil resources such as natural gas.

For the supply chain, Avantium has secured offtake commitments representing more than 50% of the plant’s total capacity. Contracts have been signed with Japanese specialty chemicals producer Toyobo, US specialty polyester film producer Terphane, Dutch beverage bottler Refresco, Belgian rigid packaging supplier Resilux and an undisclosed major global food & beverage brand owner. Negotiations with multiple potential international partners to secure additional offtake commitments are said to be in progress.

Financial closing of the investment package is foreseen for the first quarter of 2022. The total sum consists of subsidies, third-part equity, Avantium’s own equity and loans from four Dutch banks. Engineering group Worley and a consortium of Groningen investors, including the port, together will acquire 22.6% of the polymers subsidiary and reduce the Amsterdam-based parent company’s shareholding to 77.4%.

The polymers company previously known as Synvina, was once a joint venture between Avantium and BASF. The German group withdrew from the commercialization project in early 2019 after the then-partners reportedly disagreed on the timeline. The first FDCA plant was originally planned to be built at BASF's Antwerp, Belgium, site with a capacity of 50,000 t/y.

The Dutch parent company has agreed to invest an additional €10 million in Avantium Renewable Polymers to absorb the costs of the one-year delay in reaching financial closing. At an extraordinary general meeting to be held on Jan. 23, 2022, its shareholders will be asked to authorize an equity increase of €45 million. This would help pay for further development of its technology portfolio and investments in the commercialization of its projects as well as for general corporate purposes.

Avantium said it believes its flagship plant will “clearly demonstrate” the viability of large-scale manufacturing of PEF to consumers, customers and partners and pave the way for dramatically expanding applications for the polymer. The expected end-market is projected to be worth $200 billion annually. Technology licenses will be offered to collaborators worldwide.

Author: Dede Williams, Freelance Journalist