Avantium sells Ray Technology bio-based Glycol IP to UPM for US$3.14M to focus on FDCA, PEF commercialisation

NETHERLANDS – Avantium has reached an agreement with UPM for the sale of intellectual property related to its Ray Technology business, including patents and invention disclosures developed up to the end of 2023, for a total consideration of €2.7 million (approximately US$3.14 million), as the Dutch company focuses on commercialising its FDCA and PEF technology platform.

The Ray Technology IP is connected to the production of bio-based glycols mono-ethylene glycol (MEG) and mono-propylene glycol, which can be applied to packaging, textiles, and industrial fluids. 

Bio-based MEG is a key input for Avantium’s technology to produce polyethylene furanoate (PEF), a plant-based and recyclable polymer. 

Further development of Ray Technology toward commercial scale would have required substantial additional investments, and Avantium concluded that divesting the IP was the most appropriate step.

Strategic Focus on FDCA and PEF

Tom van Aken, CEO at Avantium, explained that this agreement supports the company’s strategic focus and disciplined capital allocation. He noted that Avantium is pleased that the Ray Technology IP will continue with a strong European partner and sees potential for future collaboration opportunities with UPM. 

Avantium has no more employees dedicated to Ray Technology, and the transaction has no employment consequences.

PEF’s Growing Market Relevance

PEF is a plant-based, recyclable polymer that offers superior barrier properties compared to PET, up to ten times better oxygen barrier and six times better carbon dioxide barrier, making it particularly attractive for carbonated beverage bottles, sensitive food packaging, and stand-up pouches where extended shelf life is critical. 

Earlier this year, Avantium’s operational start of its FDCA flagship plant in Delfzijl, Netherlands, was delayed due to construction-related issues, with the hold-up expected to cost an additional €7 million (approximately US$7.6 million) in capital expenditure.

Recycling Approval in Japan

Recently, Releaf, the plant-based PEF developed by Avantium, received official approval for recycling within the Japanese PET bottle stream. 

Japan has one of the world’s highest PET bottle recycling rates, exceeding 90 percent, and the approval means that PEF bottles can be collected, sorted, and processed alongside conventional PET without contaminating the recyclate stream. 

For brand owners, this approval removes a significant barrier to PEF adoption, as it assures that PEF packaging will not disrupt existing recycling infrastructure.

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