Aduro Clean signs offtake LOI for Hydrochemolytic oil

Executive Summary

• Aduro Clean Technologies Inc. signed a non-binding Letter of Intent (LOI) with a leading international commodities trading company to evaluate and qualify its Hydrochemolytic oil for future offtake agreements.
• The agreement establishes a structured pilot-to-FOAK validation program, with Phase 1 focusing on technical characterization and Phase 2 committing to the purchase of the initial production parcel from the company's first-of-a-kind (FOAK) industrial plant in the Netherlands.
• The LOI aligns with growing EU regulatory demand for certified circular hydrocarbon feedstocks and includes a non-exclusive framework that preserves Aduro's ability to secure additional offtake partners as production scales.

Key Details

• Signed a non-binding LOI with a leading independent international commodities trading company active in naphtha and certified circular hydrocarbon streams.
• LOI establishes a framework to evaluate and qualify Hydrochemolytic oil for future offtake agreements.
• Includes a committed offtake arrangement for the initial production parcel tied to the company's FOAK industrial plant planned for construction at Chemelot Industrial Park in Geleen, Netherlands.
• Phase 1 (Pilot Stage): Non-commercial engagement where Aduro provides samples from its next-generation process (NGP) pilot plant for product characterization, including contaminant profiling, boiling range distribution, and alignment with downstream upgrading and steam-cracking requirements. Testing and analytics primarily conducted by Aduro with technical input and commercial feedback from the trading company.
• Phase 2 (Commercial Validation): Triggered upon commissioning of the FOAK industrial plant. The trading company commits to purchase the initial production parcel to support downstream customer qualification, market development, and demonstration of production reliability/reproducibility at industrial scale.
• Post-Phase 1, parties intend to negotiate a longer-term commercial framework aligned with full FOAK production capacity.
• Arrangement is non-exclusive, preserving Aduro's ability to engage additional offtake partners.
• Except for the commitment to purchase the initial production parcel, the LOI is non-binding and subject to the negotiation and execution of definitive agreements.
• Market Context: EU's Packaging and Packaging Waste Regulation (PPWR) introduces progressively tightening recycled content targets for plastic packaging beginning in 2030. Global chemical recycling market valued at ~$15.5B in 2024, projected to grow at ~9.8% CAGR through 2030.
• Technology: Hydrochemolytic technology converts polyolefin waste into a circular hydrocarbon product for integration into conventional petrochemical upgrading and steam-cracking infrastructure. Product features low concentrations of olefins and heteroatoms. Pilot-scale steam cracking tests previously demonstrated stable cracking performance.

Notable Quotes

• Eric Appelman, Chief Revenue Officer: "This LOI brings together two important elements for us, technical validation and an initial commercial framework," ... "the commitment to purchase the first FOAK production parcel establishes the product's initial commercial pathway."
• Ofer Vicus, Chief Executive Officer: "Securing a structured offtake commitment at the FOAK stage reflects our effort to align technology validation and market demand," ... "This LOI links our pilot validation work directly to industrial production and marks an important step in our milestone-driven commercialization pathway."