Aduro Clean Technologies has signed a non-binding Letter of Intent (LOI) with a leading independent international commodities trading company, setting the stage for the commercial rollout of its Hydrochemolytic oil. The agreement will evaluate the company’s circular hydrocarbon product for future offtake deals.
The LOI covers an initial committed purchase tied to Aduro’s First-of-a-Kind (FOAK) Industrial Plant, planned for Chemelot Industrial Park in Geleen, Netherlands. It also establishes a structured Pilot-to-FOAK validation program designed to confirm product specifications, reproducibility, and downstream market alignment.
Under Phase 1, Aduro will provide samples from its Next Generation Process (NGP) pilot plant for technical characterization, including contaminant profiling and boiling range analysis. Aduro will lead testing and analytics, with input from the trading partner, to define product specifications and commercial value. Phase 1 is non-commercial, aimed at technical and economic characterization of industrial-scale production.
Phase 2 moves toward commercialization. The trading company has committed to purchase the first production parcel from the FOAK facility to support downstream customer qualification, market development, and demonstration of production reliability. Beyond this initial parcel, the LOI is non-exclusive, allowing Aduro to engage additional partners as production scales. Except for the purchase commitment, the LOI is non-binding and subject to definitive agreements.
Policy shifts, such as the European Union’s Packaging and Packaging Waste Regulation (PPWR), are driving demand for traceable, certified circular hydrocarbon feedstocks.
Steam crackers consume tens of millions of tonnes of hydrocarbons annually, making even partial substitution with circular feedstocks a significant opportunity. Industry research by MarkNtel Advisors estimates the global chemical recycling market at USD 15.5 billion in 2024, projected to grow nearly 10% annually through 2030.
Hydrochemolytic Technology converts polyolefin waste into a circular hydrocarbon suitable for conventional petrochemical upgrading and steam cracking. Pilot-scale tests have shown stable performance under industry-standard operating conditions.
“This LOI brings together two important elements for us, technical validation and an initial commercial framework,” said Eric Appelman, Chief Revenue Officer at Aduro.
“The pilot stage work allows us to establish product specifications and determine commercial value of Hydrochemolytic™ oil with a global trading partner while the commitment to purchase the first FOAK production parcel establishes the product’s initial commercial pathway.”
“Securing a structured offtake commitment at the FOAK stage reflects our effort to align technology validation and market demand,” said Ofer Vicus, Chief Executive Officer of Aduro.
“Circular feedstocks must meet the requirements of existing petrochemical infrastructure while also satisfying regulatory and certification standards. This LOI links our Pilot validation work directly to industrial production and marks an important step in our milestone-driven commercialization pathway.”
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