Aduro Signs Offtake LOI for Hydrochemolytic(TM) Oil with Pilot-to-FOAK Validation Program

Executive Summary

• Aduro Clean Technologies signed a non‑binding Letter of Intent (LOI) with a leading international commodities trading company to evaluate and potentially purchase Hydrochemolytic™ oil produced at its upcoming FOAK industrial plant in the Netherlands.
• The LOI outlines a two‑phase Pilot‑to‑FOAK validation program, including sample testing (Phase 1) and a committed purchase of the initial production parcel from the FOAK plant (Phase 2).
• The agreement provides a structured commercial pathway for Aduro’s circular hydrocarbon product, supporting market entry amid growing regulatory demand for certified recycled feedstocks.

Key Details

• Parties: Aduro Clean Technologies Inc. and an unnamed leading independent international commodities trading company.
• LOI Scope: Non‑binding framework to evaluate Hydrochemolytic™ oil; includes a committed off‑take of the initial production parcel from the FOAK plant.
• Phase 1 – Technical Validation:
• Aduro will supply samples from its Next Generation Process (NGP) Pilot Plant for product characterization (contaminant profiling, boiling range distribution, downstream upgrading compatibility).
• Testing conducted primarily by Aduro with technical and commercial input from the trading partner.
• Phase 2 – Commercial Validation:
• Upon commissioning of the FOAK Industrial Plant at Chemelot Industrial Park, Geleen, Netherlands, the trading company will purchase the first production parcel of Hydrochemolytic™ oil.
• Purchase intended to support downstream customer qualification, market development, and demonstration of industrial‑scale reliability.
• Future Outlook: Parties intend to negotiate a longer‑term commercial framework aligned with full FOAK production capacity after the initial parcel is delivered.
• Exclusivity: The LOI is non‑exclusive; Aduro may engage additional off‑take partners as production scales.
• Regulatory Context: EU Packaging and Packaging Waste Regulation (PPWR) driving demand for certified circular hydrocarbon feedstocks; anticipated growth of global chemical recycling market (~USD 15.5 bn in 2024, CAGR ≈ 9.8% to 2030).
• Technology Highlights: Hydrochemolytic™ converts polyolefin waste into low‑olefin, low‑heteroatom hydrocarbon suitable for conventional petrochemical upgrading and steam cracking; pilot‑scale steam cracking tests have shown stable performance.

Notable Quotes

• “This LOI brings together two important elements for us, technical validation and an initial commercial framework,” said Eric Appelman, Chief Revenue Officer, Aduro.
• “Securing a structured off‑take commitment at the FOAK stage reflects our effort to align technology validation and market demand,” said Ofer Vicus, Chief Executive Officer, Aduro.