Aduro signs LOI with global trading firm to validate Hydrochemolytic™ oil and secure initial offtake from planned FOAK plant.
Aduro Clean Technologies Inc. has announced the signing of a non-binding Letter of Intent (LOI) with a prominent independent international commodities trading company to explore future offtake opportunities for Hydrochemolytic™ oil produced through its proprietary recycling technology. The company, listed on the Nasdaq under the ticker ADUR, focuses on applying advanced chemical processes to convert low-value materials—such as waste plastics, heavy bitumen, and renewable oils—into higher-value resources suitable for modern industrial applications.
The newly signed LOI establishes a framework for evaluating and qualifying Hydrochemolytic™ oil as a potential feedstock for circular hydrocarbon markets. The trading partner involved in the agreement is active in the global sourcing, logistics, and marketing of naphtha as well as certified circular hydrocarbon streams. Through this collaboration, both parties aim to assess the product’s commercial value and technical suitability, laying the groundwork for potential long-term offtake arrangements in the future.
A key element of the agreement includes a committed offtake arrangement for the initial production parcel from Aduro’s planned First-of-a-Kind (FOAK) Industrial Plant. The facility is expected to be constructed at Chemelot Industrial Park, a well-known chemical and materials innovation hub. The LOI also outlines a structured Pilot-to-FOAK validation program designed to confirm product specifications, demonstrate consistency in production, and determine the economic and technical value of Hydrochemolytic™ oil.
The validation program will be carried out in two phases. In Phase 1, Aduro will provide Hydrochemolytic™ oil samples produced at its Next Generation Process (NGP) Pilot Plant. During this stage, the focus will be on detailed product characterization, including contaminant profiling, boiling range distribution, and compatibility with downstream upgrading processes such as steam cracking. Most of the testing and analytical work will be conducted by Aduro, although the trading company will provide technical input and commercial feedback. The goal of this stage is to define product specifications, verify reproducibility, and estimate the oil’s potential market value. Importantly, this phase is strictly non-commercial and is intended to support the technical and economic assessment of the product at an industrial scale.
Phase 2 will move toward commercial validation once the FOAK Industrial Plant becomes operational. At that point, the trading partner has committed to purchasing the first production parcel generated at the facility. This initial shipment will help support downstream customer qualification processes, enable market development activities, and demonstrate consistent production performance on an industrial scale. After this stage, both parties expect to discuss the possibility of establishing a longer-term commercial arrangement aligned with the plant’s full production capacity. The LOI remains non-exclusive, allowing Aduro to collaborate with additional offtake partners as its production capabilities expand.
Growing regulatory pressure and sustainability initiatives are expected to boost demand for certified circular hydrocarbon feedstocks across the petrochemical sector. In particular, the European Union’s Packaging and Packaging Waste Regulation introduces stricter recycled content requirements for plastic packaging starting in 2030. These targets are likely to increase demand for traceable, mass-balance-certified feedstocks that can be integrated into existing petrochemical supply chains.
Steam crackers around the world consume tens of millions of tonnes of hydrocarbon feedstocks annually to produce essential building blocks for plastics manufacturing. Even a modest replacement of conventional feedstocks with certified circular hydrocarbons could significantly increase recycled content in the plastics value chain.
Industry research from MarkNtel Advisors indicates that the global chemical recycling market was valued at approximately USD 15.5 billion in 2024 and is expected to grow at a compound annual growth rate of about 9.8% through 2030. In response to this expanding market opportunity, polymer manufacturers, petrochemical producers, and commodity traders are increasingly seeking feedstock supplies that provide reliable quality, full traceability, recognized sustainability certifications such as ISCC Plus, and a clear path toward industrial-scale production.
Aduro’s Hydrochemolytic™ Technology is designed to convert polyolefin waste into circular hydrocarbon products that can be integrated into conventional petrochemical upgrading systems and steam-cracking infrastructure. The resulting oil contains relatively low levels of olefins and heteroatoms, characteristics that may enable efficient processing with minimal additional treatment compared with many traditional chemical recycling outputs. Previous pilot-scale steam-cracking trials conducted with an industry partner have already demonstrated stable operational performance under pilot conditions.
Eric Appelman, Chief Revenue Officer at Aduro, stated that the LOI combines two important milestones for the company: technical validation and the establishment of an initial commercial pathway. He explained that the pilot program will help define product specifications and determine the commercial value of Hydrochemolytic™ oil while the commitment to purchase the first FOAK production parcel represents a crucial step toward market entry.
Ofer Vicus, Chief Executive Officer of Aduro, emphasized that aligning technology development with market demand is essential for the successful commercialization of circular feedstocks. According to him, the LOI effectively connects the company’s pilot validation work with industrial-scale production and represents a significant milestone in Aduro’s structured, milestone-driven commercialization strategy.
