Avantium green lights construction of FDCA Flagship Plant
In the Netherlands, Avantium N.V., a leading renewable chemistry technology firm, has announced that it has made a positive Final Investment Decision (FID) on the construction of its FDCA Flagship Plant. The decision was taken after that all three key conditions the company had defined, which include securing sufficient financing, finalizing the engineering and establishing the supply chain, and obtaining sufficient offtake commitments for the Flagship Plant, was fulfilled.
The positive FID represents a pivotal milestone for the further development and commercialization of Avantium’s sustainable polyethylene furanoate (PEF) plastic, with the construction of the Flagship Plant at Chemie Park Delfzijl expected to be completed by the end of 2023.
With the recent signing of a EUR 90 million committed debt financing term sheet, the final outstanding financing condition has now been met.
Reaching this milestone marks a defining moment in the evolution of Avantium and will accelerate the commercialization of PEF. With an annual production capacity of 5 000 tonnes, Avantium’s FDCA Flagship Plant will be the world’s first facility to produce furandicarboxylic acid (FDCA) on a commercial scale.
FDCA is the key building block of the 100 percent plant-based, recyclable plastic material PEF which also has functional advantages compared with fossil fuel-derived plastics.
Avantium believes that the Flagship Plant, in addition to generating revenues and profits in its own right, will clearly demonstrate the viability of large-scale manufacturing of PEF to consumers, customers, and partners.
This the company says “should pave the way to dramatically expand” the applications of PEF, with a potential total end-market of US$200 billion per year, which Avantium intends to access by the provision of technology licenses to collaborators worldwide.
The positive Final Investment Decision (FID) concludes an intense phase of (i) securing sufficient financing; (ii) finalizing the engineering and establishing the supply chain; and (iii) obtaining sufficient initial offtake commitments for the Flagship Plant prior to starting with the construction of its FDCA Flagship Plant.
We highly appreciate the trust our partners, and in particular, a strong consortium of Dutch banks, place in our innovative technology to produce FDCA and PEF. By meeting the key conditions concerning the construction of our FDCA Flagship Plant, we have reached a pivotal point in our journey to commercialize the next-generation plant-based plastic PEF. Bringing a new plastic to the market is a remarkable feat. With the backing of all our stakeholders, our perseverance, efforts, and drive are about to bear fruit. We are excited to be playing an important role in accelerating the transition to the circular economy while building value for our shareholders, commented Tom van Aken, CEO of Avantium.