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Origin Materials is scaling back operations converting biomass to chemicals as it changes its focus to a completely new business: bottle caps. Origin has developed a technology to treat lignocellulosic feedstock with hydrochloric acid to yield chloromethyl furfural (CMF), which the company has been promoting as a chemical building block to make the polyethylene terephthalate (PET) precursor p-xylene and furandicarboxylic acid, a raw material for polyethylene furanoate. Origin started up a plant with 25,000 metric tons of capacity in Sarnia, Ontario, last year. In addition, though, the company launched a business last year to make PET bottle caps for PET bottles. The aim is to replace the polyethylene and polypropylene caps currently used to make all-PET packages, which are more recyclable. Origin says in a press release that it has lined up a $100 million contract for the caps. But it says that it will reduce its overall staff by 28% and run the Sarnia CMF plant only when quantities are needed from partners. The company will also draw CMF from inventories built up when it has previously run the plant. Origin planned to build a much larger plant in Geismar, Louisiana, but last year delayed that project and redesigned it to include biofuels.
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