Origin Materials, a carbon-negative materials manufacturer, and SCG Packaging (SCGP), a multinational consumer packaging solutions provider, have formed a strategic partnership to explore licensing Origin's technology for use in an ASEAN-based manufacturing facility.

The partnership includes a joint development agreement (JDA) between the two companies that aims to develop sustainable, carbon-negative products from eucalyptus feedstocks provided by SCGP for use in food packaging, logistics, automotive, and construction. Successful processing and testing of the SCGP's eucalyptus feedstock at Origin's pilot facility in California confirmed comparable yields to other sustainable wood residues. 

According to Origin Materials, SCGP's partnership would open doors to expand Origin's technology, possibly through worldwide licensing, and is a significant step toward reaching its goal of promoting sustainable materials globally.

By utilizing Origin's patented technology platform to convert sustainable wood residues into useful materials, SCGP is looking to enhance its supply chain, capabilities, and market value.

The two companies are also exploring the production of plastic PET (polyethylene terephthalate) and carbon black derived from HTC (hydrothermal carbon) for use in automotive tires, biofuels, and PEF (polyethylene furanoate), a next-generation polymer for sustainable packaging. 

Analyst QuickTake: Origin Materials has been actively involved in developing and commercializing carbon-negative materials. The company previously collaborated with industry players such as Minafin (February 2022), Mitsubishi (April 2022), Intertex (July 2022), and ATC Plastics (July 2022) for the development of carbon-negative black for various applications such as bio-based chemicals, tire materials, rubber compounding, and plastic masterbatch.