I probably should have started with this:
Origin's platform is the production of HTC, which is a bio-based replacement for petroleum based plastics like PET. The applications are endless. It's the Holy Grail for a neutral/negative carbon footprint and a basic building block of the future. Origin built one demonstration plant and has been sending out samples by the metric ton to eager clients to test on their own lines. Co-CEO Rich Riley, who has recently departed, says customers take one look at the molecule and instantly have 5 or 6 ideas. Reminds me of biology in which "shape/structure determines function", at least for proteins. But this one plant is not enough to scale. They will need a 2nd, 3rd, 4th plant for that and of course major funding.
One of the by-products of CMF is HTC, which most notably would be a bio-based replacement for petroleum based carbon black for which there is now a severe shortage. The biggest market for carbon black is tires, which have an ugly carbon footprint. In the BoA interview, Riley and Bissell confess that Origin now seems to be "THE" carbon black alternative. The others have apparently missed the mark.
The company has also shared that the next phase may be utilizing their limited scale plant for smaller, high margin products/applications until they can build out more plants, most likely funded largely by partners. Meanwhile, caps and closures is a quick and easy generation of capital, but also a distinct industry in and of itself of which I think they will dominate, particularly in Europe where tethered caps are now mandatory. Not surprisingly, companies have gone cheap and caps are simply being ripped off by customers in defiance. Should be well received here as well. Origin says that customers were coming to them years ago requesting PET caps and closures.
I was shocked by the departure of co- CEO Riley who owns ~3M shares and seemed to be integral to critical negotiations on multiple fronts. My perception is that he must feel pretty secure in the mission at this juncture to step aside. Discord members just say it was inevitable anyway. |
