CHEMICAL MANAGEMENT, PRODUCTS AND TECHNOLOGIES
Origin Materials | January 30, 2023
Origin Materials, Inc., the leading global carbon-negative materials firm with a mission to accelerate the global transition to sustainable materials, announced the mechanical completion of Origin 1, the firm's first commercial manufacturing plant, following the previously disclosed schedule.
Critical mechanical systems were successfully installed, and commissioning has commenced as part of mechanical completion. Work will continue on-site, including electrical work, the addition of new equipment, and the refinement of technology.
Following this significant accomplishment, work will continue at the facility, with plant commissioning to support the startup scheduled to be completed by the end of the first quarter of 2023 and the startup commencing soon after. Origin 1 is anticipated to address the increasing customer demand for the company's renewable materials and enable clients to qualify products and applications beyond PET. On its next earnings call, the company aims to release forecasts for sales, EBITDA, and other financial measures for 2023.
About Origin Materials
Origin Materials, headquartered in West Sacramento, is one of the world's foremost carbon-negative materials firms. The mission of Origin is to facilitate the global transition to sustainable resources. The firm has spent more than a decade developing a platform for converting the carbon present in affordable, abundant, non-food biomass such as sustainable wood wastes into valuable commodities while simultaneously absorbing carbon. Its unique technology platform has the potential to change the manufacture of a vast array of end goods, including clothes, textiles, plastics, packaging, auto components, carpets, and toys, with an addressable market of about $1 trillion. Additionally, the company's technological platform is anticipated to deliver consistent pricing substantially decoupled from the petroleum supply chain, which is more volatile than supply networks based on sustainable wood wastes. The patent-protected drop-in core technology, economics, and carbon effect of Origin are backed by an expanding number of worldwide investors and customers.
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CHEMICAL TECHNOLOGY, CHEMICAL MANAGEMENT
Permian Resources | January 24, 2023
Permian Resources Corporation has announced a series of portfolio management transactions, including a bolt-on acquisition, the divestiture of non-operated production and land, and the sale of a part of its water infrastructure assets in Reeves County, Texas.
Acquisition Summary
Permian Resources has signed a definitive agreement to purchase 3,300 net royalty acres, 4,000 net leasehold acres, and 1,100 Boe/d (73% oil) of net production, primarily located in Lea County, New Mexico, from an unnamed third party for a total purchase price of $98 million.
This purchase price reflects an acquired value of roughly $8,000 per net leasehold acre and approximately $7,000 per net royalty acre. The operating location of the assets includes primarily undeveloped land and is next to one of the company's current core blocks in Lea County.
Non-Operated Divestitures Summary
Permian Resources also confirmed the divestiture of producing, non-operated assets in Reeves County consisting of roughly 1,800 Boe/d (44% oil) and 3,500 net leasehold acres for $60 million to an unknown third party, showing a valuation multiple of more than 5x 2023 anticipated EBITDA. The divested acreage covers the vast bulk of the company's non-operated position in Texas and includes a negligible residual inventory.
Midstream Infrastructure Transactions Summary The company signed formal agreements with an unnamed third party to sell a portion of its saltwater disposal wells and related produced water infrastructure in Reeves County for $125 million. The total consideration will be paid at closing, with $60 million subject to repayment if specific requirements tied to Permian Resources' future drilling activities in the service region are not satisfied over the next several years.
About Permian Resources
Permian Resources is a prominent independent oil and natural gas firm committed to generating outsized returns for its shareholders via acquiring, optimizing, and developing oil and liquids-rich natural gas properties. Headquartered in Midland, Texas, it is the most prominent pure-play E&P firm in the Delaware Basin. Leveraging its technical knowledge and operational flexibility to create the best and add to its portfolio of high-return, long-life inventory, which allows the firm to offer industry-leading returns to its shareholders. The company is committed to improving its high-quality, diversified asset base, implementing a capital-efficient development program, optimizing a conservative balance sheet and financial policy, and enhancing shareholder returns via a disciplined investment strategy.
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CHEMICAL TECHNOLOGY, CHEMICAL MANAGEMENT
Quaker Houghton | January 31, 2023
On January 30, 2023, Quaker Houghton announced that it has signed a contract with Constellation to acquire Renewable Energy Certificates (RECs) to meet roughly half of its entire U.S. based electricity requirements.
Constellation's RECs are Green-e® Energy Certified and sourced from wind and solar energy facilities in the contiguous United States. Throughout the contract's life, 100% of the electricity purchased by specific Quaker Houghton U.S. sites will be acquired from a renewable source or matched with RECs, which are subsequently retired. Each Renewable Energy Certificate that has been retired represents the environmental benefits of one megawatt-hour (MWh) of electricity produced by a renewable generator.
Through the acquisition of Renewable Energy Certificates (RECs), Quaker Houghton supports the operation and development of facilities that generate clean, renewable energy in regions where on-site production is not viable.
Quaker Houghton's Chief Executive Officer and President, Andy Tometich, commented, "Sustainability is core to our business and is a critical, driving force in our long-term plan. We are pleased to accelerate the achievement of our greenhouse gas emissions targets through the use of renewable energy certificates and remain committed to delivering on our ambitious 2030 sustainability goals."
(Source – PR Newswire)
Constellation's Senior Vice President, Retail, Daniel J. Verbanac, stated, "Constellation is pleased to support the sustainability goals of our customers." He added, "As America's leading clean energy producer, Constellation lauds Quaker Houghton's choice of renewable energy which helps reduce pollution and demonstrates a commitment to the environment."
(Source – PR Newswire)
About Quaker Houghton
Headquartered in Conshohocken, Pennsylvania, Quaker Houghton is a global leader in industrial process fluids. Its high-performance, innovative, and sustainable solutions are supported by best-in-class technology, deep process expertise, and personalized services. The company has over 4,000 personnel and operates in more than 25 countries. Its clients include the world's renowned advanced steel, aluminum, offshore, automotive, aerospace, mining, can, and metalworking firms. Its chemists, engineers, and industry experts work with businesses to continuously enhance their operations so that they can function even more efficiently and successfully in the future.
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