Origin Materials UP; To Develop 150-acre Facility To Produce Carbon-negative Materials In Louisiana

(RTTNews) - Shares of carbon negative materials company Origin Materials, Inc. (ORGN) are rising more than 7% Wednesday morning.

The company today said it plans to develop a new facility to produce carbon-negative materials in Geismar, Louisiana.

The plant will utilize sustainable wood residue to produce polyethylene terephthalate (PET), which is used in packaging, textiles, apparel, and other applications, as well as hydrothermal carbon, which can be used in fuel pellets.

The 150-acre facility is expected to create 200 full-time positions, 500 construction jobs, and between 500 and 1,000 indirect jobs.

"The pending state and local incentives are estimated to be worth more than $100 million. In addition, a Private Activity Bond volume cap allocation from the State of Louisiana, pending finalization, is expected in the amount of at least $400 million. Private Activity Bonds are tax-exempt bonds authorized by state and local governments for the financing of qualified projects with private capital," Origin Materials said.

The plant is expected to be operational mid-2025.

ORGN is at $5.86 currently. It has traded in the range of $4.65-$14.01 in the past 52 weeks.