Earnings call transcript Q1 2023

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Origin Materials First Quarter 2023 Earnings Call. [Operator Instructions].

I would now like to turn the conference over to Ashish Gupta from Investor Relations. ahead. go Please

Ashish Gupta

welcome earnings and Origin first Materials' Thank call. everyone XXXX conference quarter you to

Joining from CFO, the found call first will and our of the refer today of call, Investor quarter Co-Founder, Riley; Co-CEO, this at These presentation website John Relations Co-CEO press Rich to release section Bissell; which issued today. on and Origin Nate and Ahead Origin Whaley. originmaterials.com. its Materials we our be can

statements of we and call, about obligation these forward-looking today, any we views current representative will reflect this new subsequent any based on forward-looking are statements risks on be undertake and making in to as our note light to uncertainties. date, or which publicly assumptions, relied no or of future Please should events. not and results revision upon of revise expectations be statements information views subject to of as the release These

that risks subject are statements These from expectations. differ uncertainties to actual variety of results to materially and could a cause

XX-K XXXX discussion financial on For our important in XX. that Annual other factors material including filings on and XX, amended XXXX. the risks affect our Report Form the to February SEC please could with as refer results, a of our out April further

to, we In non-GAAP as These not performance. from measures, which considered addition, measures as results. isolation or non-GAAP and discuss of for, should call, during Materials' addition Origin we in supplemental today's GAAP financial will a believe measures in are be substitute useful

filings also on company posted of website. website. of our issued this webcast today's this our non-GAAP with measures Relations of our on release in the regarding The call call our the disclosures additional section and each on press available will which the SEC, find be Investor financial will You is afternoon discussed

With over will the turn to that, call Rich. I

Rich Riley

then QX our a X, over highlights Nate website provide Investor to Today joining John of reviewing to commercial Origin earlier will referring by that financial slides I will will will and application wrap to Origin a Thank posted the for regulatory you, who everyone afternoon. X, and to development. Relations we'll start were update. Ashish, turn us. be it thanks I section with up the overview. and to this discuss

begin X. will Slide We on

execute enable We continue to on plan sustainable make on to and our materials. mission world's progress our transition the to

strong and reservations remains demand exceeding with customer capacity First, $X.X off-taking broad-based billion.

to products. As of XXXX, generation commercial revenue strategy development from February of and has higher-margin our the evolved demand generation

total agreements did agreements revenue as first As and program. also generated forward. sign-offtake such, to But are we going plan our by joint activation we quarter we'll this agreements and announce quarterly provide capacity not pleased our our to updates chain reporting updates provide We're that supply to development appropriate.

we and of the with and to commercial our capabilities Our activities engage and develop customers program for set supply supply the logistical commission is establish delivering vendors chain. across relationships product chain in to

complete expected of Second, in underway XXXX. is and as startup X completion is January, the with QX mechanically and plant in announced commissioning Origin commissioning

construction planning, design, financing to Third, and front-end we Origin progress make continue of the on X.

in for fully potential and X update August project traditional to new provide strategic to our earnings partnerships. plans continue previously plan hand funded during Origin can QX an expect offerings the that on X combination indicated XXXX be product Origin cash call. existing financing construction a and We We of from on plant

to XXXX $XX are of of million. $XX to guidance maintaining EBITDA million finally, $XX million And we million adjusted and revenue $XX loss for

tailwinds favorable technology strong see and business to for continue our model We

in the is to to approximately hear several X, expected Section climate year, direct related results Turning Reduction Facilities provide the Origin Energy's manufacturing Act to solutions. tax including end IRA-funded of which billion Slide we Inflation to exploring Industrial IRA is actively of by or expect programs $XXX and investment Deployment or XXC credit. Advanced the AIFD, Department program, advanced the the from

could provide these for that the construction optimistic remain meaningful We of support programs Origin's plants.

for believe and and Biotechnology climate objectives create directives additional The both stated momentum Finally, in include titled Biomanufacturing. our Administration the chain-related a March, Biden and report will Origin securing supply report bold that U.S. released for and platform. goals we positive deploying funding

to a Limited. Company we with were X Slide announce Turning Ventures partnership in to early Public thrilled May, strategic Indorama

of world's virgin For petrochemicals those are of world's largest one Indorama, and the PET employees XXXX they billion with with to close and about worldwide, resins, leading sales. XX,XXX and the not familiar recycled $XX in producers producer

of use and Indorama XXXX Origin's has sustainability. plastics of bio existing plan. technology in bio-based the footprint, could to leadership Indorama in its pledges vision of to highly circular of goal its enable Origin while the increasing commitments Including the as feedstocks. enhance renewable manufacturing relationship of supporting a on XXXX for Ventures strategic related to plan part made recycled and global sustainability pursuit meaningful for building industry is invest billion its as petrochemical vision This value its $X company's

would bio-based Indorama part units bio-based As platform chemical to include explore have The sustainable a the the various of materials. plastics. related understanding arrangement, memorandum into with to commercially of initiatives and USA, convert rapid chemicals the use evaluating we strategic existing the to commercialization signed bio-based of initiatives partnership, derivatives of low-carbon produce of materials. modification Under CMF in some Indorama this Origin's

could Under materials the have are advantage chemical PET The applications anticipated and an partnership brands. the textiles, bio-PET, Origin FDCA, product that advanced MOU, Indorama in co-polyesters over high-profile be bio-PTA, production volume potential will to bio-based launches to plastic. and and samples packaging used limited materials automotive with bio-based and and of the traditional include study in use films, also

automotive, eucalyptus were carbon-negative provided SCGP. partnership excited joint and logistics, manufacturing in announce Slide SCGP, for agreement leading feedstocks from solutions and We're using licensing The develop by to an a aim a mid-April, construction. Origin whereby partnership strategic products consumer to explore a includes Asia-based we X to applications SCGP, strategic to development Origin, Turning between provider in with a food facility. packaging multinational packaging, we sustainable technology

SCGP successfully Sacramento the of feedstock part sustainable work, residues our California other As yields eucalyptus at tested evaluated. similar pilot JDA we West Confirming and we've to wood that facility. processed have

feedstock, a for offers other several properties useful growth, industry. to and including eucalyptus environments, rapid adaptability benefits diverse As

in X, we late markets and applications Slide strategic specialty batteries, for a to apparel. to a to were of in Korea-based company including range industrialized materials use pleased Advanced Turning in Corporation, and wide automotive, March, Hyosung materials Materials announce with sustainable high-value a industrial partnership

is sustainable and power FDCA materials spandex Hyosung As including for apparel materials in industry. battery as using cord and PDF, well blend for from part partnership, negative as PET using applications origin hybrid polymer a signed applications, PET a furanic using derivatives of for capacity the purchase to the which reservation carbon agreement and multiyear HTC a

which Minifin’s deep supply previously with arrangement further XX, expertise announced build Industrialize Slide Minifin announced in fine mid-April, commercial a specialty partnership global and The products. new chain strategic Origin's in become chemical partner Origin process chain a Minafin to Turning chemicals strengths supply capability, Origin's the Origin green of in technology Group, downstream our manufacturing expands for company initiative to platform knowhow, strength, division on will patented of manufacturing Minafin and upon sustainable the chemistry furanic aims the to whereby X. of the

bio-based products. at X position the convert part to Minifin, initiative and to Origin PET. will high-value which CMF and materials, the bio-based chemicals be including As will downstream delivered chain the value is company's supply grow complimentary of by produced intermediates expected manufacturing into technologies the the Origin The initiative, CMF for to of

quarter this amended addition, agreement PepsiCo. we In with our existing

products of mutually plants plants We volumes, agreed the have upon. be may as may flexibility supplied, as of mix, and products increased the the slate well by those with that final agreement be supply to expanding which product

our sales update, pipeline To commercial up our wrap strong. remains

to direct products. serve identify of markets the industries and expand continue that higher-margin end our We to anonymities breadth opportunities and we towards

were announce Craig chemicals to of XX, begin to They of finance, the in to thrilled as of we Turning be early from we benefit a in Tony and bring material Board appointments and the experience strategy, which wealth Tripen operations, companies, Directors. the production. prove tremendous to world-class corporate to April, company and science M&A commercial leading Origin a will Rogerson Slide

XXXX of in annual chemical billion and enabled Inc. $X.X Prior and A and over manufacturer, performance recently having materials leading by billion has sales. Previously, Securities, Hexion wood $X Ag, of president billion companies, of of Hexion, specialty as in Craig most $X.X of adhesives chemicals. global generated global acquired production -- producer developer, served Prior that XXXX materials. $X.X chairman Rogerson products private Kimura executive president, Corporation, to served and by specialty decades leading acquired other chemtura specialty engineered experience for industrial held being the a four CEO engineered and to CEO chairman, in billion and publicly marketer as XXXX, for Craig in of American had revenue. being and

Tony three science strategy Shey as regulatory served technology, and the of manufacturing Laboratories, manufacturing industries, niche knowledge in a mterial driven Many in control operational sold life critical of Mesa over the brings of at most international recently M&A background science and into global finance. are by leader of experience, a director significant requirements. and decades quality He corporate and products markets which design services. tools extensive and

$XX a had innovator more revenue. and annual material a global billion science with leading Tony than Corning, XX-year Previously, with career in

who his Noora, tenure Financial leadership to contributions like Officer. corporate also resigned are May additions would who accounting and to and Origin. progressive Corp We appointed X, have during roles them. welcome board recently Chief We Craig VF Origin to of various thrilled Tony will thank directors held the our outstanding CEO including from his and for of board finance, and we with be Ben on was in

to like John, product X, it will to With development. Origin turn I Origin that, and X, over discuss would who

John Bissell

update and remains in track expected first commissioning Slide located I'll to take guidance. plant startup X. in place for prior Sarnia, with QX with Origin begin an Ontario plant commercial to complete X, XX on in line with manufacturing Origin our on

is site work progressing complete As January X underway, on announced commissioning favorably. is in with mechanically Origin and

experience producers, who our team quarter, as such including During Cabot. carbon we the to experience first hired brings of the black director with working manufacturing valuable

Looking up decarbonize step begin production, the the the deliver world's to in commercial journey materials. we're samples and ahead, take to our next excited plant, start and to customers, product

our sustainable extractives. we to intermediate higher-value oils Origin or bio-asphalt, first HTC, resins, for qualify surfactants, is and X, from FDCA, CMF, from and strategic will using explore and bio-PET and epoxy product to that X parasailing black, we Apart applications foremost qualify carbon and use asset Origin plan a biofuels.

to fulfill demand, support to goals gradually be our up while and materials. to customer we able one we origin that guidance. our We remain revenue operations ramp produce production qualify will expect confident samples meet optimally aiming We to

achievement including we families, significant rubbers goods. In some with rubber additional advances HTC. for our others. And patent our special carbon To black and how position filings what product development, performance related HTC in products of improve to a IP potential five carbon tires makes additional we continue on FDCA and like applications, automotive milestone, suitability program, among and validating announced use of of polymer In and mechanical to the and this offer milestone March, black polymers so strengthen HTC background very I'd interesting customers. and for achieve valuable the that HTC drives to patent or overall understand new the we our our intermediates some it

process to chloromethylfurfural carbon forms any our not conversion compounds and other proves interaction lignin believed HTC world of Origin or the and CMF related of to XX, Slide biomass process. else the in the core with degraded unique be the during material from or in origins. than hydrothermal anywhere a by is Starting HTC

HTC into morphologically XX, similar the is Slide of form image origins SEM carbon an or from made us grape structure. a materials, like a fossil-based with aggregates micrograph, Origin, particles complex SEM primary quite shown electron scanning to from to HTC image is petroleum clustered carbon with Turning black, black [indiscernible] the alongside of

HTC morphological budget conductivity surface immediate or the the Origin's and Beyond an and enhanced the shape, size, offers manipulate particles. chemistry more similarity of ability to

and carbon sustainability isn't makes of it rubber HTC needs and applications as inks in to material products given and wide specifications, this to tires, offering pigments, as tunability for of tailor mechanical the to tunability like allows to particularly a as This benefits products meet such for develop of paint range customers addition application. for performance us deliver The our value for materials versatile a a goods, well HTC, black

which characteristics can two tuned. HTC has be readily

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and black naturally. by black groups cannot hydrophilic fossil-based hydrophilicity a the vary the we and practically fossil-based limit, Furthermore, of attain In remove see makes functional has carbon the HTC contrast hydrophobic treatment can behavior. you to that carbon treating

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the by HCC together. of gives the us performance. HTC We it macro about both and and micro-morphology morphology the Having I'd tell recent this us milestone. established with by The chemistry morphology, tremendous you our affect and micro-morphology surface the over or materials Putting macro to morphology of ability can tunability to providing adjust HTC process thus context, like power the post-processing. conditions clusters, all overreaction,

XX, March Slide continued in black development. strong we to progress our were excited update provide on an in to carbon Turning

carbon than successfully, Specifically, technically carbon a specification rubber widely with better black, for fossil-based carbon tires existing and performed blended used black we a goods. when and specifically fossil-based mechanical that demanding automotive blacks produce and performance

standard, be black market. applications, of carbon, achievement product sustainable in gold demanding this indicating specifications bringing less carbon in black to but forward NXXX to specification rapidly the carbon potential We origins space. not technically XXX as carbon adoption bio-based validates our only achieved, of The widespread the host application benefits look a potential for black used to The for well. in large, represents the has growing broadly our low a which

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of several made our the other future having look highly development we tires black carbon the programs for in blends and further black increasing of of to Now, and carbon blends that exceed technical black proportion forward performance typical similar NXXX the specification, applications. carbon material

and highest And what folks we're this HTC are can Turning have team level black and scientists, excited getting and has represented they the done about carbon incredible we group application other carbon this people Everything spectacular materials products. a point, our our to an management in to tremendously from and us of engineering, process engineers, commercial analysis, XX, job specialize Slide in of materials group development accomplish. engineering, regulatory team. that

to our guys to plan Louisiana, continue construction financing. from origin friend building we and Regarding to advance design, second planning be

black biofuels. FDCA, We the continue make as PDF design progress applications, products of be such developing and converted plant may to be the to can new carbon into which incorporated which and

plant on in to expect We offerings, to construction August provide product plans new an update the XXXX.

origin materials. the one our of exciting two and continues transition to to To the summarize, milestones milestone execute how it's origin an in I'm against mission world's approaching sustainable from team Startup enable proud Award to our our one

and more chemicals to create valuable out development materials our deepen roadmap, continue existing carry strategic our performing new of partnerships, to better and commercialization vision shared our sustainable, relationships a product advance We industry. and

financial will to that, Nate the it discuss turn With over to I of some details.

Nate Whaley

XXXX update John. outlook. commentary a on first provide I'll with our an expectations finish our to on results financing origin with Thanks, and then for begin quarter our

year Speaking program revenue revenue and first supply no to associated $X.X million JDAs with compared activation of the reported and for slide prior quarterly we period. the with in work quarter chain XX,

expenses to million million, prior $XX.X operating same the First quarter during year. period in the compared were $X.X

$X.X million the quarter year. in loss to was $X.X in to a for income the of prior same for Adjusted million same quarter the of Net EBITDA first loss million compared compared period prior period in a was income the the net $X.X of million $X.X first the year.

securities, State January, $X.X million balance in plant. Bond cash under of a marketable therefore Turning issuance support five to sheet, early the a to our $XXX.X announced equivalent in cash of of unanimously related portion of with QX financing regarding commissioning meaningful the granting bonds resolution first we of X cash and the to completion ended the X, the exempt Commission expenditures billion its to non-recurring Louisiana tax approval quarter Origin and Origin up the and of passed construction of Origin

amount and origins, volume, the negative the company tax-exempt use in This solids of expected on strong Origin these activity X of of is foundation financing to private of the allocation, stock announced million produce enables use XXX feed waste cap toward the to inclusive bonds materials bond carbon previously project. the builds

of and financial leading of the entirely the Origin Origin America Department financing continues of States Energy. Agriculture loan on Bank programs, Origin engaged debt investors, X, including private the traditional of United the to to could enable to Department of Federal of been underwrite bonds market by financing other which tax-exempt institutions them work with a forms bonds. through has using and and

Reduction Inflation Act Origin incrementally discussed, and anticipate for programs, state, credit from advanced of local, other financing X. and loan various also previously to those we the including we federal the beneficial grant as tax manufacturing And promoting be

combination cash expect be on continue financing indicated traditional of a As project and existing X potential hand. to funded fully that Origin Rich strategic partnerships. Previously we from can mentioned,

Given play in incentive ongoing meaningful an financing update team, Again, to technology in role affairs anticipate Origin Origin and federal we global August, X. a strategic we licensing the to an Origin's and governmental X provide on effort expect active programs XXXX. partnerships of

with outlook. I XXXX our will wrap now up

are adjusted million maintaining an million $XX We revenue our $XX and $XX $XX to for of of EBITDA million. loss guidance million to

back I that, for turn will remarks. it closing with And Rich to

Rich Riley

their proud our shareholders draw Nate. step our in you, their would for transition to our the once-in-a-planet materials. the production continued and closing, execution I'm our we support. I incredibly closer commercial to Thank partners and as success for thank team, team's like contributions to world's taking In company's customers, of in to sustainable our our next

that, I'll to ask the with And open for operator the line questions.

Operator

Instructions] [Operator first go ahead. The Please Research. Fermium from ION Frank from Mitsch question comes Research

Frank Mitsch

about? I'm years, outlet into did that's relationships -- to the into talk that you for you've that'll come out can How a and, think couple the owners the And natural over about that obviously, a of given Johnny downstream. go? have could about of brand lately push that relationship a or the kind is curious PET Indorama of had partnership. where PepsiCo, but with the any the the you last know, it's owners, in company obviously, from you that Danones a you was brand Indorama, color that largest and there, that sort Was CMF come and the do with Indorama that

Rich Riley

of goes into other producer paraxylene Indorama of that listeners, PET world's we of an production is PET. us what strategic the and the our XX% make for largest as Yeah, is incredibly partnership

better world, have terms into around in partner our the the market absolute So, paraxylene to of partnering global for leader our customers in a in with bio-PET couldn't Indorama. we the convert

sustainability where their And agenda. into We that top the and very invest at with to really their they well sustainability billion also they've up have this committed of initiative XXXX. lined stated provision $X goals

creating And secondly, a we we're get you initially, mutual smaller like, kind bio-based samples, that the multifaceted think bio-based hands like the strategic or Indorama materials. in near-term, will that -- evaluating so of So, customers. alignment. handle have using of to and to we together those And work on scale then facilities the in U.S. incredible in it's to produce to our continue partnership conversion But grow. the

watch So, to a work lot ways together. of

Frank Mitsch

I state in firm bonds. the about if And he so Louisiana a to press release, could bonds financial and forth tax-exempt a for talked underwrite ask hiring the

X you curious those what in be start-up. that might is as you Just XXXX timeframe have to a with coming of a that terms bonds, roughly market to thoughts understanding Origin

away we ways from a are little that? So,

Nate Whaley

Nate. Frank, Sure.

we Really, So announced August. going as of back to timing, call, full update that we that as that help X hired February, our said as have America to in all have Bank Origin far bring like a the are and on we us earlier market. first, in in of around to we expectations financing

until want our to full point. that update I hold at So, that on

Operator

from Bank go ahead. comes next The America. question Steve of Byrne from Please

Steve Byrne

of I pathways? guys would where is produce now way maybe are new these Thank value And developing you. the path. of with other potential it talk on started a those or mean, The derivatives. can find a the different Every about of going and as chemistry potential Can chemistry these if characterize this evolving, you continually fascinating. process initially we you pathway you a we a FDCA PET? furan reverses get any PEF really what down And I putting the little you produce you're in the go time of view just of call aside. to interest How think bit about your PET. value down the

was where as to your bio-based it of size versus look carbon convert way now now a black it of own it. continually The you're a you perhaps proposition carbon derivative then going value able way characterize a this tentative better the path to down or PET, proposition And seems at just in you view previously a into black PET? of the HTC effectively, versus the to here it a value being is evolve. describe Can

John Bissell

Hey, for it. really question, this Steve, John, thanks appreciate is Yeah. the

highest other lots we're you really think, out, I I off our And this and you're products the products places doing And of additional and platform. so, think upon platform of come build put way is of a if to that you sort what evolution exploring can think, is we're chemistry. to which the zoom discovering in referring the I of intermediates value developing all what

I really, when talk individual speaking am each I generally of these you and the the think, as generally, at quite things look at products speaking, we about being performance think I when you advantaged, proposition, said, better is mean, value of new markets, isn't and itself. in also, higher individual and saying, But usually performance margin, something then we this when the look advantage. we're a now, value that for Okay, its go at well, product, products usually the industry, that right

to it's off feels the it make do both product. and because product of to our partner drop-in a justified sort that costs a that additional the And because work higher to why So, of than lower incumbent. a we sort easier, of value a is material platform with look usually it's just develop new reason at

sort So, sides you of were getting it in both nice on way. a

we sort And of price excited materials. of so one at about these the looking when reasons advantage side, the why performance and new usually side, we're that's cost get the On them.

know, obviously, of demand other uses to an a around product we is, PET for You of that understand amount now, don't there's have enormous do right it. PET the development world an bunch to side of enormous amount the

the would are near-term. relative can for an know, from we our perspective, capacity to PET us, in arbitrarily so market I into scale, impact that just ability like almost to bring So, we products, because online say important

sort answer believe into the that's into actually we reasonably, penetrate products, short, can, of higher-value we more there. a advantaged market the that kinds the performance get happier can we longer maybe of guess I the these are But and is

I the think side is you about other asked HTC.

HTC HTC principles reformulating into the to performs get interesting What's data really without our we're same not the black of with recently. that sophisticated as the product than its we finding NXXX, integration it that product carbon more is only we that in rubber, the from rubber. think which I our better But generic applications did published been apply products. finding we're is and it better

the is carbon rubber are perform that of with these formulate in make of carbon applications what into alongside to the black part product, to actually the you critical added lot a well. material how And, components right? the putting are the a So, the end as just black do other

if to little value speaking, a higher reformulating, to a bit going willing Generally you're the of you're get of ultimate do product.

think So, talking is about forward as, and materials as current going higher value, same and cost performance to bringing of In agency about that these we the the PX the PET. way. think we compared advantage cases, we're all kinds kinds of of lower life into materials sort of

Steve Byrne

the HTC in you're that And down it becoming to that addition me pursuing, seem and lower this to pathway would new value costs, carbon going with higher alternative. and a black

understanding The would COX generating some other My carbon emissions. on COX would data reduction is be in a seem significant black you that. benefit would And maybe have is a significant emission source.

might is pretty DOE looking this enable the black for be whether I'm of the more funding. carbon this get you DOE might compelling. that that versus reduce products that the products for footprint? could COX to curious to end product emissions HTC one as just And the be just Is COX If

Rich Riley

COX of course, footprint tires which is carbon of consumption of the are one of we I markets the is reduce, opportunity significant major Well, the mean, black, for then right. and And that huge a Yeah. Black to tires. materials a using, of automobiles, see really course, Carbon part

positive of impact. industry, So, I for think opportunity huge lots

about optimistic ability of pretty broadly. to we're COX think, sort footprint our I impact

exactly one, there's have there's emissions, the but to which there. black improve I of just we another and carbon things we about in to our specific work course, carbon world. like black interesting discussed, incentives think I which And think think for opportunities of the world, that's carbon, dynamic being in COX various And for as the that big in Without opportunity that we actually get so, there's that. a us lots

be with they're think supply. America way black black has subject to older really North new actually we processes. carbon our we bringing ability constraints will bring pollutant to as in, of make from the limited But production carbon of in kinds same especially which, online HTC, that associated the using economically general Because don't those emissions we just well, online supply

Carbon And in sort layer there's to North we in in America future. capacity do challenged in so, actually expand another, we way the the of think we could opportunity where to really, production a can players other may be Black that

Operator

from The go Please Stine ahead. from next comes Craig Hallum. question Eric

Eric Stine

three to worries. value. gets plants or higher strategy companies that or time to if mean, I'm appreciate that is licensing all get where products. and you've generation revenue change on It so got route? the bit just market at is margin maybe value that side the is close I think curious, driving happens interest So, more feel a like faster given probably offtake can how and the that demand I no I four go -- I could the little now, look the or they mean, fills they scarcity and

Rich Riley

great question. a that's Yeah,

has excited packaging, quarter this a assets, a So, partnership which for exploration and is a we with were capabilities. need of and lot to our announce an eucalyptus sustainable first of of lot that a SEGP, example other company licensing of a lot different including

an And efforts. example Asia-based facility an with so, explore working is them licensing to of our

being with complete say test that want our share yeah, tests interest these to to more with kind Origin as those announce will that continue being scenarios obviously do of feed yields and But appropriate. to the licensing various companies increase sort various And do X I is, stocks, inbound I really mechanical, and and only more interest. that's partners do use thing and and Origin receive of would online can we'll of We also for think we soon, some can't and X the explore. various one

Eric Stine

smaller you I envision obviously good than what X and that know Origin this guess, I mean, X. to plant, segue beyond. I for Origin

of that into out those Do how into making lot terms products, the in areas? market, disclosed curious, obviously, your you getting route Just to plays just about reach. a that different into things, Pepsi of you other think the some get companies what agreements amending increasing other of go

John Bissell

will lot a access are need case. can multiple they certainly different there PET in have really in but need a a of continue excited lot of directions. the lot polyester the a PET polymers. we of of companies are our side in for recently PET those that, [indiscernible] deal of a think lot the and customers interested with I long wide be continue a materials. and And markets. that'll in of to to to lot and think, time, these and there's a announced HTC materials chemical think we a PEF, on the are interested and and PET are want go and We range who companies And customers companies take into value of propositions to lot do that of PEF to really next-generation sort alone, around explore We

Eric Stine

of Do forward? you point, route that iceberg kind you this is the Pepsi's progress a going companies kind that at of more and I go of see off, doing kind view you'll as you tip that of and want or how mean, one things

Rich Riley

continue to that And interest It's say say, I is that's I only customers going don't for our enormous PET. hard think in would multiple obviously PEF. But to think of there to FDCA from and grow. I there's demand

that top demand And about And test newer polymer of that learn continue will and think it. on do think so develop I to grow I they it for more and, a that's as it, them.

I So, more of to see we'll this. think continue

Operator

from The go from John Suisse. Credit Roberts next question Please comes ahead.

John Roberts

And of target from forward that for capacity still these pull you any that X new Revenue you. through Thank before? a contracts, Origin had $XXX XXXX million.

Rich Riley

customers X as and reaffirmed use I comes Origin online, year I in our outlook continues around guidance we of haven't don't to any think it as of get this explore reason we for yet. things. samples continue asset think I there's and ramp. year. given agreements a for the think, quarter next arrangements to it licensing those large-scale strategic kinds development And and and our to on joint materially revenue those do has this to samples hands one But changed.

John Roberts

or X then any And have commercially NXXX black as secondly, blends HTC fuels? sold liquid fossil Origin and will in carbon of

John Bissell

ready black think I'd making this carbon meaningful it couple little that be X material to some going I a grade Origin of than But to speak be, since NXXX the that it's call as volume we're volume. it pretty I application from that that we'll to off we'll that's to think will talk a that making we're we surprised HTC, of that don't the weren't I'm making to be we'll if I'd not seems NXXX. I the better be perform sure clear some pretty about say, But Can't think point. allocated at applications. of using be be ready specifically to months. that volumes a of

Operator

Molchanov Pavel James. Raymond ahead. from comes Please from question go next The

Pavel Molchanov

led was the saw press I for disclosing number? stop you longer off in the useful capacity that takes this my reporting taking after to of It be release will the what reservations, years. question. to over Thanks, decision that and no quarter, quite the

Rich Riley

more crew in ago, than quarters and And rapidly. felt short in about we've of rapidly proven a grown, relatively Yeah, of for demand were we've we reason demand that on focused beyond And a And was Pavel. scale of got And Xx that several packaging to demand. like lot period that couple we would we you so very that has them Rich, grew have we like fact, a kind expected. I of number This we that would the had plants. prove a say is time. really number thanks, talked know, to we that feel

And wasn't so, generation. continuing instead, revenue relationships, And the would just we development right keep on demand that to joint really focus. focus and, and licensing agreements, growing

make like advancements, working things partnership spending been like from what of you and we've carbon other for stuff on that or product example, case companies HTC. of with comes our tires or black companies some And that that, in relationships our hear with deeper closely some the that's about, even in talking resources developing of

as keep update And day, raw to helpful. we'll that it going super growing, for time. no of, it's think really but increasingly doubt continue that from we wasn't just will that have feedback supply massive a long appropriate, investors there's generally that to be So, thought constrained materials. the for demand sort we number, And get we

rationale. So the some of that's

Pavel Molchanov

Understood.

a the looking at me timetable Let I for latest? we of Have like that? production, something about follow-up on long reach Origin steady Are on or to that? cusp the so for a changed pounds, quarter startup. your still how XX-month you're Or XX,XXX will state obviously thoughts of kind what's X take it of think operation? right

John Bissell

Yeah, thanks Pavel.

that, changed think, of and saying, speaking, fast ramp kinds okay, in demand there. I just going more both a of a bit a percentage little that maximizing part sure speaking, really of month-by-month probably can. we there's up this on meaningful stronger us we're view capacity ramp is as reflecting as I really you at hasn't the generally customer make But customers, specific from basis. our and know, for not capacity that looking specific increase driver exactly for kinds to on it us, a generally is materials uncertain than for

is around that that the and always some you then And there's under try kinds for these second uncertainty reflecting up to sort of exactly promise the of things those want get can overdelivers how scale, the to we recognition our fast and we extent things.

learned talked haven't from of, learned since But we materially our time to bringing of not all, the that would that anything I scale, you something say it's om this. all at online. time haven't we this one So, about of sort change the think we I point, view at know, think, way the last one

Operator

the of our I over today's investor Q&A. Gupta, turn segment. Ashish Q-and-A to Investor Relations now segment concludes That live it will next to conduct

Ashish Gupta

today's a with time Ask part our as all submitted the participation last four in pleased will operator, question as asked of commonly call, want high to very who campaign. and be earnings of we on our we investors to Once you, again, a taking level thank of and most the interest are everyone Origin submit questions. Thank we've calls, invited done for questions

what you the terms retrofitting from questions Origin licensing? with developing talk SCGP? revenues Rich, Is a factory? Can is about possible it are for Our or first future

Rich Riley

great able Yes, it's is large question And really in I them using make feasibility to a SCGP commercial Asia as explore really and company we're interesting is doing previously. discussed Eucalyptus of PET a as them a of being the quantities working feed-stock. what with to

the that out have proven excited to so, Eucalyptus feasible that eucalyptus a are them our And for very pilot plant. Origin an received have set were to processed on and that feed-stock plants, from like attractive yields we seems that and in have

working so, and with to on on continue of them forward And we'll the similar sort look working projects. assessment other companies feasibility with

Ashish Gupta

few the licensing think over a years? you could Do significant be source next revenue of

Rich Riley

of in for needs, licensing leads companies our to is with us their to all customer these I be make not need own an revenue a a clear, do of that certainly conversation which some as entire it lot do. or a will single source a the various and And of terms more origin but compensated a to is serious clear we it some two kind There's for of still timing of how plant partners. part quickly is scale able build be sense plants. plant that explorations us for of for that wouldn't -- we likely initial

near relatively progress I lot make but And continue in how the so, terms. meaningful could a, a -- just to the we and by of to much would pretty lead licensing revenue say, on I when to say a think that It's hard really front.

Ashish Gupta

for that consideration take color, Question Great. questions building there you John. Rich. some commissioning that, that beyond? X for Origin any John, are John. to With into and Origin turn think appreciate learnings we'll process key from to Really now you X for want

John Bissell

Yeah, sure.

things I think, quite there a have been we few are that learning.

scaling technology set we're these probably doing project really talk we're pretty I the learned think, things. of them, are two we also but of Origin the We're the I capabilities most way of the scaling kinds investors will we things but remind we've with do execution. around when projects. to that both that specifically important organizational a regularly capital

and you of I when think we'd right? have? as fantastically, may that in And form quite what our processes make so, it about And we things capital to worked a really test to what project single didn't like and that we up do did learned where sure what it fit a good-sized how our to was, XX, through? of and to the time. do could that. way muscling future we've we we have execute have comes And do we that, way frankly, just as end like to sort And every are the Because efficiently really a it's project bit that our

significant. that's think I been So, pretty

terms of things the that there. of In number we've learned

the execution, OMX. I transferable very organizations, to that lot line is that people each capable is of individually from projects, a of other to lot engineering, different a think going capital And same be spectacular along together at thing of design, of we, which, brought lot is are that manufacturing. a we and

project And of companies, across of those that from the capital sort really where the people meld the contribution, understand the of are to capabilities. a great clear in each of the of what that so, parts together we're way, companies of terms in parts do way great and of is each great some trying those our pieces get that of sum you areas, that a those organizational

bit So, I quite think there. there's been a

that we sort we quite But differently. say, boy, on change I I at side, point, the us. of I'd jumps technology the process. say this a nothing maybe it's still components modest, say of really stack rather I'd out want particular for Or do think some small that to think are where things in little we'd this there

the But of we things a as about technology up on one, capacity organizational of ramp capabilities. and we're started going different up course, and learn to set

think I that. forward we're all to So, looking

Ashish Gupta

today's I'm it for call. going conclude remarks. Q&A of to Rich closing That'll portion back turn the to

Rich Riley

And for This in and thank for us today's all today Origin. you Thanks, for all interest Ashish. questions joining concludes the great call. your

Operator

today's call. concludes conference This

You you a have participating may pleasant disconnect your and day. lines. for Thank

Origin Materials (ORGN) 10 May 232023 Q1 Earnings call transcript