Avantium N.V.

Environmental & Social Information • Nov 20, 2024

Avantium and SCGC Advance the Development of PLGA Polyester

AMSTERDAM, 20 November 2024, 07:00 hrs CET – Avantium N.V., a leading company in renewable and circular polymer materials, announces the strengthening of its partnership with SCG Chemicals Public Company Limited ("SCGC"), a leading chemical player in Asia and an innovator of chemical innovations and solutions. The companies have signed a multi-year collaboration to pilot the production of PLGA (polylactic-co-glycolic acid). This partnership marks a significant milestone in the development and commercialization of sustainable materials.

Avantium's Volta Technology uses electrochemistry to convert CO² to high-value products and chemical building blocks including glycolic acid. Glycolic acid, combined with lactic acid, can be used to produce PLGA polyester in existing manufacturing assets. PLGA is a biodegradable, recyclable polyester with excellent barrier and mechanical properties, making it an excellent sustainable alternative for conventional fossil-based polyesters. Building on the initial success of their partnership, Avantium and SCGC have spent the past year thoroughly exploring the properties of PLGA to perfect its formulation for large-scale polymer applications, with a focus on barrier properties, recyclability, and environmental impact.

SCGC and Avantium have now committed to a multi-year collaboration to pilot the production of PLGA from CO² feedstock. Under this agreement, SCGC will provide support for all stages of technology development. Additionally, SCGC will work with Avantium on developing various PLGA applications, aiming to bring these sustainable solutions to market. As part of this collaboration, Avantium grants SCGC an option to negotiate license deal to utilize its Volta Technology, including PLGA production, within Southeast Asia. This strategic collaboration is expected to accelerate the adoption of Avantium's innovative technologies in the region, fostering the growth of sustainable materials and contributing to a circular economy. Furthermore, the PLGA piloting initiative welcomes other synergistic industrial collaborators. Avantium and SCGC invite interested parties to join this groundbreaking effort to explore and expand the applications of PLGA, driving innovation and sustainability in the polymer industry.

Dr. Suracha Udomsak, Executive Vice President and Chief Innovation Officer of SCGC, comments: "SCGC is committed to advancing Green Innovation to tackle low carbon challenges. Our goal is to reduce greenhouse gas emissions by 20% by 2030. Together with Avantium, SCGC has evaluated PLGA samples and we are highly impressed with the sustainability and performance characteristics of this innovative material. We look forward to further advancing PLGA production with Avantium in the years to come."

Gert-Jan Gruter, Chief Technology Officer at Avantium, comments: "We are pleased to partner with SCGC in this groundbreaking initiative. This collaboration not only highlights the potential of our Volta Technology but also reinforces our shared commitment to sustainability and innovation. By deepening our collaboration with SCGC, a cornerstone investor in Avantium through SENFI Ventures and a partner in our FDCA and PEF technology, we aim to make a significant impact on the global materials market."

Press release

About Avantium

Avantium is a pioneering commercial-stage company focused on renewable & circular polymer materials. Avantium develops and commercialises innovative technologies for the production of materials based on sustainable carbon feedstocks, i.e. carbon from biomass or carbon from the air (CO2). The most advanced technology is the YXY® Technology that catalytically converts plant-based sugars into FDCA (furandicarboxylic acid), the key building block for the sustainable plastic PEF (polyethylene furanoate). PEF is known under the brand name Releaf®, an EU registered trademark of Avantium. Avantium has successfully demonstrated the YXY® Technology at its pilot plant in Geleen, the Netherlands, and is in the process of starting the world's first commercial plant for FDCA in Delfzijl, the Netherlands. Avantium works in partnership with like-minded companies around the globe to create revolutionary renewable chemistry solutions from invention to commercial scale.

Avantium's shares are listed on Euronext Amsterdam and Euronext Brussels (symbol: AVTX). Avantium is incorporated in the Euronext Amsterdam SmallCap Index (AScX). Its offices and headquarters are in Amsterdam, the Netherlands.

For more information:

Caroline van Reedt Dortland, Director Communications +31-20-5860110 / +31-613400179 mediarelations@avantium.com

Aarne Luten, Head of Investor Relations +31-625687714 ir@avantium.com