Extraordinary meetings, extraordinary materials
In January, Amsterdam-based renewable chemistry technology company Avantium NV called an Extraordinary General Meeting (EGM) to discuss the virtues of plant-based recyclable plastics. Rob Coker spoke with Managing Director, Renewable Polymers, Bas Blom to find out more.
Can you explain a little about the matters in hand that led to calling an EGM?
In December, we announced that we made a positive Final Investment Decision (FID) for our world-first FDCA flagship plant. FDCA (furandicarboxylic acid) is the main building block for our 100 per cent plant-based recyclable plastic – PEF (polyethylene furanoate).
This concluded an intense phase for Avantium, where we worked hard to satisfy the three key conditions to start construction: securing sufficient financing, finalising the engineering and establishing the supply chain, and obtaining sufficient initial offtake commitments. At an EGM on 25 January 2022, Avantium asked its shareholders for their support of the FID and their approval of several specific related resolutions. The shareholders voted in favour of all these resolutions and subsequently, on 31 March, we announced the Financial Close, formalising the entry of two minority shareholders as well as the debt with four Dutch Banks and InvestNL.
How are Avantium’s shareholders helping to promote market-readiness for these new materials?
With the support of our shareholders to construct the FDCA Flagship Plant, Avantium moves to an exciting new chapter of commercialising the plant-based, fully recyclable plastic material PEF. This scalable manufacturing capability demonstrates both the YXY technology as well as the market potential of PEF, launching high-performance, circular and fully renewable products, which will benefit our planet, the packaging of foods and beverages, apparel, the polymer producing industry, and the rise of biobased feedstock. Thus, we can move forward towards a fossil-free world for chemicals and materials.
Our shareholders have supported us through the challenging and complex journey of bringing a new polymer to market. We’re confident that through extensive research and development, bolstered by offtake agreements with key partners such as Refresco, Resilux, Terphane and Toyobo, and partnerships with global brand owners such as Carlsberg, Lego and LVMH within the PEFerence consortium, PEF will provide substantial and long-term value to shareholders. With a supportive ecosystem of partners throughout the PEF value chain, Avantium is ready to meet the increasing global demand for this truly next-generation material and enable the transition to a circular and sustainable future.
What is it about such innovative/environmentally friendly materials that will make them successful in application?
Apart from being circular and fully renewable, PEF has a range of performance and environmental properties that are superior to incumbent fossil-based materials. With lower gas permeability towards carbon dioxide, oxygen, and humidity, PEF can preserve the integrity and quality of the product within the packaging for longer periods of time, reducing food waste and extending functional shelf life. This makes PEF suitable for applications such as bottles for carbonated drinks. PEF is also stronger and has better heat resistance, which combined with the mentioned barrier performance enables thinner or light-weighted packaging solutions. PEF can be detected with technologies commonly used in existing sorting facilities and can be recycled using existing pet recycling assets.
Our work with leading brands across various markets shows the strength of our commercialisation strategy. We actively seek partnerships with industry-leading brands, as well as governments and financial partners. These partnerships demonstrate the commercial value of PEF and thus we will continue to generate demand for FDCA and PEF, also beyond our Flagship Plant.
In which applications are we likely to see these materials and how will they benefit the end-user?
PEF is a 100 per cent plant-based, recyclable material and will first be introduced to high-value applications – from high end monolayer and multilayer bottles to performance polyester films and high-tenacity fibres. From there, PEF can be used for a wider range of applications such as rigid and flexible packaging and apparel.
PEF will benefit consumers in a number of ways. Its superior barrier properties enable a better taste, less loss of vitamins and a longer shelf life. Compared to conventional materials such as fossil-based plastics, glass and aluminium, PEF offers lightweighting and a lower carbon footprint – which is very much needed to curb global warning. We all have become more environmentally conscious and ask the industry and brands to deliver green products. PEF combines this consumer demand in the existing supply chain from polymer production to the end-user and back through recycling, enabling the industry to meet its sustainability commitment and related targets.
In what other ways will Avantium’s PEF-producing plant contribute to sustainability targets more broadly?
As part of our broader sustainability plan – Chain Reaction: 2030 – we have outlined a number of goals to ensure the sustainability of our operations. These include zero non-hazardous waste to incineration and landfill by 2025, and net-zero carbon emissions for our operations by 2030. Our approach to hitting these targets includes switching to 100 per cent renewable electricity, evaluating greenhouse gas emissions and offsetting options, as well as looking into alternative heating systems. Additionally, it is paramount that waste is managed effectively so to reduce the amount of pollution in our environment. We’re looking at numerous ways to reduce the amount of waste we generate and recycle residues wherever possible.