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Carbios to Be Constructed in France in Collaboration with Indorama Ventures, Its First-of-a-kind Manufacturing Plant for 100% Bio-recycled Pet

Carbios | February 24, 2022

Carbios to Be Constructed in France
Carbios have developed an enzymatic solution for the end-of-life treatment of plastic and textile polymers. Indorama Ventures, a PET manufacturer from India, and Carbios have agreed to work together to build a manufacturing plant in France that will use Carbios' PET bio-recycling technology.

"We are very pleased that Carbios and Indorama Ventures have chosen France to build their first 100% bio-recycled PET manufacturing plant. From cutting-edge science, Carbios has developed a disruptive technology and process that enables the efficient transformation of plastic waste into novel, valuable products. This breakthrough project showcases the government’s ambition within France 2030: to get ready for the challenges of the next decade. Combining biotechnology and a renewed industrial ambition will be key to achieving a more circular economy.“ According to Bruno Le Maire, France's Minister of Economy, Finance, and Recovery.

"The announcement by Carbios of a flagship project for enzymatic plastic recycling demonstrates our ability to foster the emergence of innovative industry leaders with cutting edge technologies for the energy transition." It is a success for industrial startups in France and a key milestone in the France 2030 strategy, making our industry ready to meet the needs of the Transition. "

-Agnès Pannier-Runacher, Minister Delegate for Industry.

Contributing to a cleaner planet while creating new jobs and economic value is our core mission. Hence, we are very pleased to welcome Carbios to the Grand-Est Region and very proud to welcome the Longlaville site selection for their world-first 100% bio-recycled PET plant, in partnership with Indorama Ventures, already present and very active in our region. The Carbios reference plant is fully integrated within the Grand-Est Region's ambition to become a leading territory for PET circular economy. This project represents the first significant milestone in building our complete ecosystem.  Jean Rottner, President of the Grand-Est Region, stated

Carbios has successfully launched its demonstration plant in Clermont-Ferrand and is now taking the next step toward industrialization and commercialization through a partnership with Indorama Ventures. The goal is to build and run the world's first industrial-scale enzymatic PET bio-recycling plant in France, which would process around 50.000 tons of post-consumer PET waste each year, which would be enough to make 2 billion PET bottles or 2.5 billion PET trays.

"With this first medium-sized plant, we want to become the global reference for the circular economy of plastics and textiles. By engaging in such a partnership with Indorama Ventures, we confirm our commitment to pursue our initial industrial development in France. This plant will pave the way towards international commercial and industrial deployment. We are grateful to our shareholders, partners, the French Government, and the Grand-Est Region for sharing Carbios’ ambitions and vision towards a profitable circular economy. " Comments by Emmanuel Ladent, Chief Executive Officer of Carbios.

Indorama Ventures and Carbios decided to complete a due diligence process after the good results of Indorama Ventures' first investigation into the technical soundness of Carbios' technology over the last several months. A feasibility study will be conducted to determine the viability of industrializing Carbios' technology at Indorama Ventures' French manufacturing facility. If these technical and economic analyses are successful, Indorama Ventures will co-invest in the project.

"We are pleased to implement Carbios’ innovative and transformative technology at our Longlaville site. Bio-recycled PET addresses customers’ growing demand to contribute to a cleaner planet through high-quality plastics while decreasing the use of hydrocarbons. "adds D K Agarwal, Chief Executive Officer of Indorama Ventures.

The capital expenditure required for the project is projected to be roughly €150 million for Carbios' core technology, including an integrated purification stage. Additionally, an estimated €50 million in investment will be made to prepare the site's infrastructure. The project is estimated to generate around 150 full-time employment opportunities, both direct and indirect. Carbios anticipates concluding a major non-dilutive financial support package from the French Government and the Grand-Est Region 5 in the coming months, based on an offer received last week from Industry Minister Agnès Pannier-Runacher and Grand-Est Region President Jean Rottner.

This financial assistance is contingent upon notice to the European Commission and contracting with French authorities. Carbios reported a €112 million cash position on September 30, 2021 in its half-year reports. Carbios has also acquired a €30 million loan from the EIB6 since then.

This agreement represents both sides' desire to address the rising concern about plastic pollution by advancing Carbios' enzymatic bio-recycling technology. This innovative technology can speed the transition to a circular economy for plastics.

Carbios' technology, dubbed C-ZYMETM, uses a world-first enzyme-based biological process to transform PET (the predominant polymer in bottles, trays, and polyester fabrics) into its core monomers, which can then be utilized to make 100 percent recycled and indefinitely recyclable PET. This one-of-a-kind production facility combines Carbios' science and technology with the world-class manufacturing capabilities of Indorama Ventures. Companies that make consumer goods, like Carbios' partners L'Oréal and Michelin and big companies like PepsiCo and Suntory Beverage & Food Europe, want more environmentally friendly packaging for their products. This partnership will help meet both of these needs.

Spotlight

In today’s manufacturing companies, CAD, PLM and ERP solutions are traditionally implemented as stand-alone solutions, which each has its own data structure, interface and capabilities to fulfill Engineering, Operations and Manufacturing requirements respectively. However, with the rise of Industry 4.0, for manufacturers to stay competitive they must be able to implement solutions that interconnect information and processes not only across the internal enterprise and departments but external partners and suppliers as well.

Spotlight

In today’s manufacturing companies, CAD, PLM and ERP solutions are traditionally implemented as stand-alone solutions, which each has its own data structure, interface and capabilities to fulfill Engineering, Operations and Manufacturing requirements respectively. However, with the rise of Industry 4.0, for manufacturers to stay competitive they must be able to implement solutions that interconnect information and processes not only across the internal enterprise and departments but external partners and suppliers as well.

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