Origin (ORGN) down in broader sell-off despite Mitsui deal

Origin Materials is partnering with Japanese conglomerate Mitsui to supply carbon-negative materials to its myriad industries, the companies jointly announced.

Origin Materials, based in West Sacramento, Calif., will develop and industrialize carbon-negative, plant-based materials for Mitsui’s automotive, chemical, electronics, packaging, textiles, construction and personal care divisions as part of a a multi-year capacity reservation agreement. Details of the transaction were not disclosed.

Public via SPAC merger

Origin Materials stock fell in early trading Monday to $6.16 per share, down 3.90% from the opening price of $6.41. Origin Materials shares trade on the Nasdaq stock exchange under the symbol ORGNW. Origin Materials went public in June via a SPAC merger with blank check company Artius Acquisition.

“We are strategically aligned and share a common vision of the role that sustainable, competitive and low-carbon materials can play in creating value around the world,” said Origin Materials c0-CEO Rich Riley in prepared statement. “This partnership reflects our shared commitment to driving sustainable growth, while reducing greenhouse gas emissions.

Carbon negative plastics

Origin produced carbon negative materials by capturing the carbon dioxide stored in plant cellulose through a proprietary chemocatalytic process. Origin uses this process to convert the C-6 cellulose found in non-food Woodstock and even cardboard to create four basic chemicals.

Origin’s main material is called chloromethyl furfal furan and a resin known as hydrothermal carbon. Origin also creates materials known as levulinic acid and furfural, which are all carbon negative materials.

Technically a trading company, Mitsui is involved in iron and steel mining, mineral resources, chemical manufacturing, food products and services, and IT and communications services for businesses through 280 subsidiaries. . Based in Tokyo, Japan, Mitsui reported net income of 335,428 yen ($2.91bn; £2.15bn) on sales of 810,235 yen ($7.04bn). ; £5.19 billion).

Moving from fossil materials to decarbonized materials – Photo: Origin Materials investor presentation

Origin produces carbon negative materials by capturing the carbon dioxide stored in plant cellulose through a proprietary chemocatalytic process. Origin uses this process to convert the C-6 cellulose found in non-food Woodstock and even cardboard to create four basic chemicals.

Origin’s main material is called chloromethyl furfal furan and a resin known as hydrothermal carbon. Origin also creates materials known as levulinic acid and furfural, which are all carbon negative materials.

Technically a trading company, Mitsui is involved in iron and steel mining, mineral resources, chemical manufacturing, food products and services, and IT and communications services for businesses through 280 subsidiaries. . Based in Tokyo, Japan, Mitsui reported net income of 335,428 yen ($2.91bn; £2.15bn) on sales of 810,235 yen ($7.04bn). ; £5.19 billion).

Read more: Mitsui (8031) allocates $633 million to increase stake in oil unit

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