Avantium, an Amsterdam-based leader in renewable chemistry, has successfully raised €70M through a combination of a €50.5M fully underwritten rights offering and a €19.5M institutional upsize offering. This significant capital increase will support the launch of the world’s first commercial FDCA (furandicarboxylic acid) plant in the Netherlands, marking a major step forward in the production of sustainable plastics.
Tom van Aken, CEO of Avantium, expressed satisfaction with the successful capital raise, which surpassed the initial target of €50M. This financial milestone will ensure Avantium remains well-capitalized until its FDCA Flagship Plant becomes commercially operational, allowing the company to strengthen its balance sheet and accelerate its technology licensing strategy.
Broadening Investor Interest
The increased issue size and high exercise percentage of the rights, alongside the commitment from larger existing shareholders and the entry of new strategic investors, reflect a growing and broadening interest in Avantium’s innovative approach to renewable and circular plastics economy.
Pioneering Sustainable Plastic Production
Founded in 2000, Avantium focuses on developing renewable polymer materials, utilizing proprietary technologies like YXY to convert plant-based sugars into FDCA, a key component for producing sustainable plastic PEF (polyethylene furanoate). PEF’s applications span various products, including polyesters, polyamides, polyurethanes, and more, offering a 100% plant-based and recyclable alternative to traditional plastics.
Advancing Renewable Polymers
The proceeds from this funding round will primarily support the completion, commissioning, and startup of the FDCA Flagship Plant, facilitating its commercial deployment. This initiative is pivotal in Avantium’s mission to contribute to the reduction of carbon emissions by 1% in the real estate industry, showcasing the company’s commitment to sustainable innovation.
Allocation of Proceeds
Avantium plans to allocate 80% of the proceeds towards completing and starting the FDCA Flagship Plant and enhancing activities in Renewable Polymers for technology licensing. Additionally, 15% will cover general management expenses and support services, with the remaining 5% dedicated to developing and scaling up the Volta Technology.
With this funding, the company is poised to lead the transition towards a renewable and circular plastics economy, creating long-term, sustainable value for all stakeholders and reinforcing its position as a pioneer in the field of renewable chemistry.