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LVMH Invests in Low-Carbon Packaging

Origin Materials Inc. and LVMH Beauty, a division of LVMH Moët Hennessy Louis Vuitton, on Tuesday announced they have created a strategic partnership to develop sustainable low-carbon footprint packaging for the perfumes and cosmetics industry, with potential applications from apparel to toys.

As part of the agreement, LVMH has signed a multi-year capacity reservation agreement with Origin Materials to purchase sustainable, carbon-negative polyethylene terephthalate (PET) for use in packaging for the Beauty division. PET produced using Origin technology is functionally identical to petroleum-based PET, but with a dramatically lower carbon footprint since it is made from sustainable wood residues that capture carbon, according to Origin. In addition, Origin PET is equally recyclable to fossil-based PET within the existing infrastructure, which is critical to creating a circular economy with a significantly reduced carbon footprint.

Origin aims to continue to work with LVMH Beauty on sustainable packaging solutions across its family of brands, which includes Parfums Christian Dior, Parfums Givenchy and Guerlain. Origin’s technology can help LVMH Beauty brands reduce the carbon impact of their products while maintaining the premium aesthetics and zero-compromise performance that luxury customers expect.

“At LVMH, with our Life 360 program, we made the decision that our packaging will contain zero plastic from virgin fossil resources in a near future,” said Claude Martinez, executive president and managing director, LVMH Beauty. “Origin’s bioplastic technologies are playing a crucial role in helping LVMH achieve our sustainability targets without any compromise on quality. LVMH Beauty is happy to collaborate with Origin, supporting innovative technologies.”

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Origin said its patented technology platform can help revolutionize the production of a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tires, carpeting and toys, with an estimated $1 trillion addressable market. In addition, Origin’s technology platform is expected to provide stable pricing largely decoupled from the petroleum supply chain, which is exposed to more volatility than supply chains based on sustainable wood residues.

Origin Materials co-CEO Rich Riley said the company’s mission of “enabling the world’s transition to sustainable materials as fast as possible” aligns with LVMH’s ambitious environmental initiatives.

“We look forward to helping LVMH reduce its carbon footprint and achieve its sustainability goals while continuing to deliver superior product experiences to its customers,” Riley said.

Headquartered in West Sacramento, Calif., Origin Materials has developed a platform for turning the carbon found in inexpensive, plentiful, non-food biomass such as sustainable wood residues into useful materials while capturing carbon in the process. Origin’s patented drop-in core technology, economics and carbon impact are supported by a growing list of major global customers and investors.

In February, Origin said it plans to build its first world-scale manufacturing facility, dubbed Origin 2, in Geismar, La. The facility would produce carbon-negative materials used to make PET plastic, which is used in packaging, textiles, apparel and other applications, as well as hydrothermal carbon that can be used in fuel pellets, as activated carbon, and as a replacement for carbon black.

The plant would convert an estimated 1 million dry metric tons of wood residues each year into products for a wide range of end markets. The company expects construction to begin in mid-2023 and for the plant to be mechanically completed and operational by mid-2025.