Avantium sells bio-based glycol IP to UPM in multi-million deal
Key takeaways
- Avantium has sold its Ray Technology intellectual property, including patents and invention disclosures, to UPM.
- Ray Technology IP involves bio-based MEG and MPG production.
- The divestment aligns with Avantium’s strategic priorities and capital allocation discipline, with no employee impact.
Avantium, a Dutch company specializing in renewable and circular polymer materials, has reached an agreement with UPM for the sale of the intellectual property (IP) related to its Ray Technology business.
The transaction covers the patent portfolio and invention disclosures developed by Avantium up to the end of 2023, when further development was put on hold by Avantium. The total consideration for the transaction amounts to €2.7 million (US$3.14 million) in cash.
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 various applications such as packaging, textiles, and industrial fluids.
Bio-based MEG is a key input for Avantium’s technology to produce PE furanoate (PEF), a plant-based and recyclable polymer.
Tom van Aken, CEO at Avantium, says: “This agreement supports our strategic focus and disciplined capital allocation. We are pleased that the Ray Technology IP will continue with a strong European partner and see potential for future collaboration opportunities with UPM.”
Scaling up
Avantium is focusing on the commercialization and licensing of its 2,5-Furandicarboxylic acid (FDCA) and PEF technology platform. The company says further development of Ray Technology toward commercial scale would have required substantial additional investments.
“In light of its strategic priorities and capital allocation discipline, Avantium concluded that divesting the IP was the most appropriate step,” the company states.
Avantium has no more employees dedicated to Ray Technology, and the transaction has no employment consequences.
Earlier this year, Avantium’s operational start of its FDCA flagship plant in Delfzijl, Netherlands, was delayed due to construction-related issues. The hold up was expected to cost an additional €7 million (US$7.6 million) in capital expenditure.
Recently, Releaf, a plant-based plastic PEF developed by Avantium, received official approval for recycling within the Japanese PET bottle stream.
