The Geismar plant will use sustainable wood residues — sourced in part from sawmills and managed forests in Louisiana — to produce plant-based polyethylene terephthalate (PET) used in packaging, textiles, apparel and more apps. Hydrothermal carbon, which can be used in fuel pellets, will also be produced on site. Made with renewable raw materials, Origin’s patented technology platform is designed to reduce the carbon emitted during the production of widely used products, from containers for food and beverages to parts for the automotive industry.
The project will create 200 new direct jobs with an average annual salary of over $90,000 plus benefits. Louisiana Economic Development estimates that an additional 857 indirect jobs will result in the Louisiana Capital Region. The company estimates that 500 construction jobs will result at the height of development of the new facility.
“I welcome Origin Materials’ plans for a new facility in Louisiana,” Governor John Bel Edwards said. “Their unique process of developing PET products from renewable wood fibers is another example of how the global transition to sustainability can be a catalyst for economic investment and job creation in our state. The company’s carbon-negative mission aligns with our climate action plan’s approach to limiting the severity of climate change while maintaining economic competitiveness in a low-carbon future.
The plant will be located on an LED-certified site – the 150-acre Parks Geismar site in Ascension Parish – meaning it has been deemed ready for development after extensive review. The company expects construction to begin in mid-2023 and the plant to be mechanically complete and operational by mid-2025.
“The demand for ‘net zero’ materials is extremely strong, and we believe this plant will be instrumental in meeting the demand for our products in the United States and around the world,” said John Bissell, co- founder and co-CEO of Origin Materials. “We are grateful for the partnership of Louisiana Economic Development, the Baton Rouge Area Chamber, and Ascension Parish for the support they provided in the site selection process. Local talent is world class in refining, forestry and agronomy, commodity logistics and chemicals. The site is located along the Mississippi River with easy access to barges and railroads and abundant local wood residue feedstock. The incentive package offered for construction in the area is compelling and the local industrial cluster can provide access to hydrogen, ethylene, water treatment and more. »
Based in West Sacramento, California, Origin Materials was founded in 2008. The company has partnered with leading consumer brands such as Danone, Nestlé Waters and PepsiCo in its creation of recyclable PET plastic consumer products made from plants, as well as Ford Motor Company and global chemical companies. This Geismar-based facility, the largest of its kind, will join the company’s network of locations, including its West Sacramento-based pilot facility and Ontario, Canada-based production site which is currently under construction.
“As Ascension Parish moves toward a greener future, we look forward to welcoming Origin Materials into our business community,” said Ascension Parish President Clint Cointment. “This project is important in an emerging market for bio-based chemicals as well as an investment in our local workforce.”
To secure the project, the State of Louisiana is offering Origin Materials a competitive incentive package that includes FastStart LED services, ranked #1 in the nationwide Workforce Development Program Condition over the past 12 years. Additionally, the company would be eligible for a $6 million performance-based award, to be paid over six years, to reimburse site infrastructure costs. The company should also utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
“This project portends a future of transformational change in chemical and plastics manufacturing,” said Baton Rouge Area Chamber President and CEO Adam Knapp. “Origin Materials’ decision to locate its largest plastics manufacturing facility here is a testament to our region’s continued labor and supply chain advantages, even as technologies evolve for the future. AEDC and LED have been excellent partners in their work to support the company’s decision to locate in the capital region. »