Avantium is pushing ahead with the start-up of its flagship FDCA plant while seeking at least €55 million in new equity to fund its next phase of growth.

 

The renewable and circular polymer company said its oxidation unit at the FDCA Flagship Plant has been successfully commissioned, while work on the purification unit is being finalized. The company expects to produce its first batches of FDCA later this year and begin commercial sales under existing offtake agreements by the end of 2026.

 

The progress comes as Avantium's financial position has tightened sharply. Cash, including restricted cash, stood at €23.9 million at June 30, down from €57.5 million at the end of 2025.

 

Avantium plans to raise at least €55 million in equity during the second half of 2026 and is seeking commitments from existing shareholders as well as underwriting support from financial institutions.

 

The company is also in talks with the Investment and Development Agency for the Northern Netherlands (NOM) over a proposed €20 million convertible loan backed by the Dutch government and the Province of Groningen. Avantium said it has received a term sheet and is advancing discussions, but the financing remains conditional on, among other things, the company securing funding through an equity raise.

 

The funding push comes after delays to the flagship plant caused by a titanium welding remediation program, which was completed in April. Avantium said the delay shifted the expected timing of revenues and has given it greater visibility on the additional capital required to support operations and the commercialization of its FDCA and PEF technologies.

 

Chief Executive Officer Tom van Aken said the company was nevertheless making progress toward production.

 

"We are continuing to progress toward the full start-up of our FDCA Flagship Plant. The oxidation unit has been successfully commissioned, and we are currently finalizing commissioning activities for the purification unit as we prepare for the safe start-up of FDCA production. We remain confident that we will achieve a successful full start-up of the Plant in a timely manner, and in our ability to produce FDCA at commercial scale."

 

Avantium said commercial momentum around FDCA and PEF is also building. It has secured 22 offtake agreements for material from the flagship plant and 15 capacity reservations representing more than 150 kilotonnes of FDCA and PEF for future licensed production facilities.

 

The company is also in licensing discussions with potential partners across Europe, Asia and North America, while regulatory developments in Europe and elsewhere are supporting the potential use of PEF in a range of applications.

 

But the company's first-half financial results underline the pressure facing the business. Revenue fell to €4.7 million from €6.7 million a year earlier, largely because of weaker sales in its R&D Solutions business. Avantium reported an EBITDA loss of €18.8 million, compared with a €18.5 million loss in the first half of 2025.

 

Net cash flow was negative €33.6 million in the first half, compared with negative €11.9 million a year earlier.

 

Avantium said weaker conditions in the petrochemical industry, amid geopolitical uncertainty in the Middle East, prompted customers to cut R&D budgets and delay capital investment decisions. Its Renewable Polymers business recorded no licensing revenue during the first half, with the delayed plant start-up pushing some licensing-related activities and revenues into later periods.

 

The company is responding with cost cuts and a restructuring of its portfolio. Headcount fell about 15% to 240 full-time equivalent employees at June 30 from 284 a year earlier.

 

Avantium has also been narrowing its focus around FDCA and PEF. In May, it announced the sale of intellectual property related to its Ray Technology to UPM. In July, it spun out Volta Technology into independent company Carbeau and is preparing to spin out Parana Technology into Parana Materials B.V. Further investment in Dawn Technology will be halted.

 

Van Aken said the changes are designed to sharpen the company's commercial focus.

 

"These actions are intended to maintain disciplined capital allocation, strengthen our financial position and increase our focus on the commercialization and licensing of FDCA and PEF."

 

The company has also strengthened its leadership team. Floris Hekster has been appointed Chief Operations Officer, effective October 1, adding operational expertise as Avantium prepares to move from plant commissioning toward commercial production.

 

Avantium expects the FDCA plant to ramp up gradually after commercial operations begin, with full capacity targeted for the second half of 2028.

 

The immediate priority, however, is financing.

 

The company has convened an Extraordinary General Meeting for September 30, where shareholders will be asked to approve an increase in authorized share capital to facilitate the planned equity raise and support the proposed €20 million NOM convertible loan.

 

Avantium said the equity raise could be launched and completed before the meeting if its existing authorized share capital proves sufficient.

 

Van Aken acknowledged the importance of the months ahead while maintaining that the company is on track for its next stage.

 

"As we move toward commercial operations, we remain focused on strengthening our financial position and securing the resources needed to support the ramp-up of the FDCA Flagship Plant and our next phase of growth."