Avantium raises €20 million in a financing round led by PMV

By Avantium | April 20, 2016

Avantium, an innovative chemical technology company and leader in renewable chemistry, recently announced that it has closed a financing round of €20 million ($22.59 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 commercialize the YXY technology for producing 100 percent 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 metric tons per year is intended to be located in Antwerp, Belgium.

On March 15 this year, Avantium and BASF announced that they 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.

Tom van Aken, CEO Avantium, said, “We are in an exciting period where all pieces of the strategy are coming together and major milestones are achieved. Today, we proudly announce the successful closing of our financing round, and we are honored that PMV and FPIM strengthen our shareholder base. 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.”

Roald Borré, head of equity investments at PMV, commented, “Our team is very proud to be part of this great story. At PMV we are all about creating value for all stakeholders involved by building sustainable companies. Avantium made it in 2015 to the Global Cleantech List, a list of the top 100 private clean technology companies, and this for the sixth year in a row. Thereby joining other companies in our portfolio on the list like Kebony and FRX Polymers. 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.”

Philippe Muyters, Flemish minister for work, economy and innovation,” said “As a government we are proud that Avantium has committed to Antwerp, which confirms Flanders as a leading region for investments in chemistry and innovation. The government has put everything in place to convince this promising company to invest in Flanders. We are glad that today Avantium announces this financial closing with PMV as its new investor.”

Avantium plans to make the plant investment together with BASF and the reference plant is intended be based at BASF’s Verbund-site in Antwerp. Such joint investment is subject to the successful conclusion of the exclusive negotiations to establish a joint venture and the subsequent decision to jointly invest in a “reference” plant.