Avantium receives EUR20 mn financing for YXY technology

Dutch chemical technology and renewable chemistry firm Avantium has closed a financing round of EUR20 million. The investments are made by PMV, an independent investment company for Flanders, FPIM, a Belgian Federal Holding and Investment Company, and Avantium’s existing shareholders.

The funds will be used to commercialise the YXY technology for producing 100% biobased packaging material PEF (polyethylenefuranoate), a next generation plastic with superior performance. Avantium’s roll-out plan includes the construction of a ‘reference plant’, the world’s first commercial plant to produce FDCA (furandicarboxylic acid). This reference plant with a capacity of up to 50,000 tonnes/year is intended to be located in Antwerp, Belgium.

On March 15 this year, Avantium and German chemicals firm BASF announced signed a letter of intent to establish a joint venture for the production and marketing of the renewable chemical building block FDCA, as well as marketing of PEF. The joint venture intends to use the YXY process technology developed by Avantium to solidify its world-leading positions in FDCA and PEF, and subsequently license the YXY technology for industrial scale applications. The companies plan to jointly invest in the new plant, subject to the successful conclusion of the exclusive joint venture negotiations.

“We are honoured that PMV and FPIM strengthen our shareholder base,” Tom van Aken, CEO Avantium said. “Belgium is very important to us, since we plan to build the reference plant in Antwerp. Through the joint venture that we intend to set up with BASF, we aim to rapidly deploy of the YXY technology and be the technology and market leader in FDCA and PEF.”

PMV’s portfolio places particular emphasis on sustainable energy, biotech, cleantech, life sciences and infrastructure for the future, which makes Avantium a good fit. In 2015, Avantium made the Global Cleantech List, a list of the top 100 private clean technology companies for the sixth year in a row.

Roald Borré, Head of Equity Investments at PMV, said: “FDCA and PEF are without any doubt innovations with an incredible impact on the environment and thus society. We are very committed to supporting companies that bring innovation, sustainability, a solid business plan and a great team together. For us, Avantium clearly is one of these companies.”