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

Rhea-AI Summary

Aduro (Nasdaq: ADUR) signed a non-binding Letter of Intent on March 12, 2026 to evaluate and qualify Hydrochemolytic™ oil with a leading commodities trading company and to establish a Pilot-to-FOAK validation program.

The LOI includes a committed purchase of the initial production parcel from Aduro’s planned FOAK Industrial Plant at Chemelot, Geleen, Netherlands, while remaining non-exclusive and subject to definitive agreements.

Positive

• Committed purchase of initial FOAK production parcel
• Pilot-to-FOAK validation program to confirm specifications and reproducibility
• Pilot steam-cracking tests previously showed stable cracking performance
• Non-exclusive LOI preserves ability to secure additional offtake partners

Negative

• Most terms non-binding, leaving commercial scale terms and pricing uncertain

Key Figures

Chemical recycling market size: USD 15.5 billion Chemical recycling CAGR: 9.8 percent Start of EU PPWR targets: 2030 +1 more

4 metrics

Chemical recycling market size USD 15.5 billion Global chemical recycling market in 2024

Chemical recycling CAGR 9.8 percent Projected compound annual growth rate through 2030

Start of EU PPWR targets 2030 Recycled content targets for plastic packaging begin

Publication year 2024 Year of industry research cited from MarkNtel Advisors

Market Reality Check

Price: $4.52 Vol: Volume 22,484 is close to...

normal vol

$4.52 Last Close

Volume Volume 22,484 is close to the 20-day average 23,095 (relative volume 0.97x), suggesting no unusual trading ahead of this LOI. normal

Technical Shares trade above the 200-day MA at 3.71, about 13.9% below the 52-week high of 5.25 and well above the 52-week low of 1.40 (up 222.86% vs low).

Market Pulse Summary

This announcement links pilot-scale validation of Hydrochemolytic™ oil with an initial commercial of...

Analysis

This announcement links pilot-scale validation of Hydrochemolytic™ oil with an initial commercial offtake commitment at the FOAK industrial plant, creating a milestone-based commercialization pathway. The LOI remains largely non-binding beyond the first parcel, so follow-through on definitive agreements and successful FOAK commissioning will be important. The broader chemical recycling market, cited at USD 15.5 billion in 2024 with 9.8 percent projected CAGR to 2030, provides contextual demand potential for circular feedstocks.

Key Terms

offtake, first-of-a-kind, pilot plant, steam cracking, +4 more

8 terms

offtake financial

"The LOI establishes a framework to evaluate and qualify Hydrochemolytic™ oil produced by the Company for future offtake agreements."

An offtake is a contract where a buyer commits in advance to purchase a company’s future output—such as raw materials, energy or finished goods—often at agreed volumes and prices. For investors, an offtake provides predictable revenue and lowers the risk that production will go unsold, similar to a long-term subscription or pre-order that helps a factory or mine secure funding and plan operations with greater confidence.

first-of-a-kind technical

"initial production parcel tied to the Company’s First-of-a-Kind (“FOAK”) Industrial Plant planned for construction"

A first-of-a-kind product, therapy, device, or project is one that has no prior commercial equivalent and breaks new ground in technology, regulation, or application. For investors, it signals both opportunity and risk: like backing the first airplane, it can capture big rewards if it succeeds but carries extra uncertainty about safety, rules, costs, and customer demand because there is no tested blueprint to follow.

pilot plant technical

"Aduro will provide samples of Hydrochemolytic™ oil produced at its Next Generation Process (“NGP”) Pilot Plant."

A pilot plant is a small-scale version of a production facility built to test, refine and demonstrate a manufacturing process before investing in full commercial production. For investors, it acts like a prototype or test kitchen: it shows whether a process works at realistic scale, reveals likely costs and bottlenecks, and reduces technical and financial risk associated with scaling up to mass production.

steam cracking technical

"alignment to downstream upgrading and steam-cracking requirements."

Steam cracking is an industrial process that uses high heat and steam to break large hydrocarbon molecules (from feedstocks like ethane or naphtha) into smaller building blocks such as ethylene and propylene, which are the raw materials for plastics and many chemicals. Investors watch steam cracking because its operating costs, feedstock prices, and utilization rates directly affect chemical producers’ profit margins and the supply of widely used industrial materials—think of it as converting logs into kindling that feed a big manufacturing furnace.

polyolefin medical

"Hydrochemolytic™ Technology converts polyolefin waste into a circular hydrocarbon product"

Polyolefins are a family of common plastics—including polyethylene and polypropylene—made by linking simple chemical building blocks called olefins. Think of them as different recipes made from the same basic ingredient: they are lightweight, durable, and widely used in packaging, automotive parts, and medical items. Investors watch polyolefins because demand, raw-material costs (tied to oil and gas), and recycling or regulation trends directly affect producers’ sales, margins, and supply-chain risk.

mass balance technical

"reinforcing the need for traceable, mass balance certified inputs."

Mass balance is a record-keeping method that tracks all raw materials, intermediates and finished products through a manufacturing process to ensure what goes in equals what comes out, accounting for normal losses. For investors, it shows whether production is efficient, compliant with safety and regulatory rules, and whether inventory or product shortages, waste, or unexplained losses could affect costs, supply and future revenue—think of it as a kitchen ledger that reconciles every ingredient used and each dish produced.

iscc plus regulatory

"recognized sustainability certifications such as ISCC Plus, and a credible pathway to industrial scale."

ISCC PLUS is a third‑party sustainability certification that verifies raw materials and supply chains meet environmental and social criteria for renewable, recycled, or bio-based products. For investors, it signals that a product or supplier has traceable practices and reduced sustainability risks—like a food label for green claims—potentially affecting market access, regulatory compliance, and reputational value.

chemical recycling technical

"the global chemical recycling market was valued at approximately USD 15.5 billion in 2024"

A process that breaks down used plastics and other waste into their basic chemical building blocks so they can be remade into new materials or fuels, rather than being burned or buried. For investors it matters because it can create new revenue streams, reduce raw‑material costs, and change regulatory and environmental risk profiles for companies—think of it as turning a pile of old LEGO into fresh bricks companies can reuse.

AI-generated analysis. Not financial advice.

LONDON, Ontario, March 12, 2026 (GLOBE NEWSWIRE) -- Aduro Clean Technologies Inc. (“Aduro” or the “Company”) (Nasdaq: ADUR) (CSE: ACT) (FSE: 9D5), a clean technology company using the power of chemistry to transform lower value feedstocks, like waste plastics, heavy bitumen, and renewable oils, into resources for the 21^st century, announces that it has signed a non-binding Letter of Intent (“LOI”) with a leading independent international commodities trading company active in the sourcing, logistics, and marketing of naphtha and certified circular hydrocarbon streams. The LOI establishes a framework to evaluate and qualify Hydrochemolytic™ oil produced by the Company for future offtake agreements.

The LOI includes a committed offtake arrangement for the initial production parcel tied to the Company’s First-of-a-Kind (“FOAK”) Industrial Plant planned for construction at Chemelot Industrial Park in Geleen, Netherlands. It establishes a structured Pilot-to-FOAK validation program intended to determine product value, confirm specification alignment, and evaluate reproducibility of Hydrochemolytic™ oil while supporting downstream market positioning as part of the circular hydrocarbon markets.

Under Phase 1 of the engagement, Aduro will provide samples of Hydrochemolytic™ oil produced at its Next Generation Process (“NGP”) Pilot Plant. This work will focus on product characterization, including contaminant profiling, boiling range distribution, and alignment to downstream upgrading and steam-cracking requirements. Testing and analytics will primarily be conducted by Aduro, incorporating technical input and commercial feedback from the trading company to establish product specifications, assess reproducibility, and determine commercial value. Phase 1 is non-commercial in nature and is intended to advance the technical and economic characterization of industrial-scale production.

Phase 2 establishes a commercial validation step upon commissioning of the FOAK Industrial Plant. The trading company has committed to purchase the initial production parcel of Hydrochemolytic™ oil produced at the FOAK facility. This parcel is intended to support downstream customer qualification, market development activities, and demonstration of production reliability and reproducibility at industrial scale. Following completion of this initial parcel, the parties intend to engage in discussions toward a longer-term commercial framework aligned with full FOAK production capacity. The arrangement is non-exclusive and preserves the Company’s ability to engage additional offtake partners as production scales. 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.

Policy developments are expected to increase demand for certified circular hydrocarbon feedstocks within the petrochemical sector. The European Union’s Packaging and Packaging Waste Regulation (“PPWR”) introduces progressively tightening recycled content targets for plastic packaging beginning in 2030, reinforcing the need for traceable, mass balance certified inputs. Steam crackers consume tens of millions of tonnes of hydrocarbon feedstock annually to produce the building blocks of new plastics. Even limited substitution with certified circular hydrocarbons represents a meaningful opportunity to increase circular content within existing petrochemical supply chains.

According to industry research published by MarkNtel Advisors, the global chemical recycling market was valued at approximately USD 15.5 billion in 2024 and is projected to grow at a compound annual growth rate of approximately 9.8 percent through 2030. In response, polymer producers, petrochemical companies, and commodity traders are working to secure feedstock streams that offer traceability, consistent quality, recognized sustainability certifications such as ISCC Plus, and a credible pathway to industrial scale. Structured offtake arrangements are therefore an important step toward broader market adoption.

Hydrochemolytic™ Technology converts polyolefin waste into a circular hydrocarbon product intended for integration into conventional petrochemical upgrading and steam-cracking infrastructure. The product is characterized by low concentrations of olefins and heteroatoms, properties that are expected to support processing with minimal additional treatment relative to many conventional chemical recycling outputs. Pilot-scale steam cracking tests previously conducted with an industry partner demonstrated stable cracking performance under pilot 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.”

About Aduro Clean Technologies

Aduro Clean Technologies is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil; and transform renewable oils into higher-value fuels or renewable chemicals. The Company’s Hydrochemolytic™ technology relies on water as a critical agent in a chemistry platform that operates at relatively low temperatures and cost, a game-changing approach that converts low-value feedstocks into resources for the 21st century.

For further information, please contact:

Abe Dyck, Head of Corporate Development / Investor Relations
ir@adurocleantech.com
+1 226 784 8889

KCSA Strategic Communications
Jack Perkins, Senior Vice President
aduro@kcsa.com

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release include, but are not limited to, statements regarding the progression from Pilot Plant evaluation to FOAK Industrial Plant construction, commissioning, and operation; the timing, scope, and results of the Pilot‑to‑FOAK validation program; anticipated production volumes, quality, and market introduction of Hydrochemolytic™ oil; the ability to qualify Hydrochemolytic™ oil for downstream petrochemical applications, including steam cracking; the execution, timing, and terms of definitive offtake or commercial agreements; the purchase of an initial production parcel and the potential for subsequent commercial arrangements; integration of Hydrochemolytic™ oil into existing petrochemical infrastructure; regulatory drivers, including the expected impact of the European Union’s Packaging and Packaging Waste Regulation (PPWR), supporting demand for certified circular hydrocarbon feedstocks; the availability and acceptance of sustainability certifications such as ISCC Plus; and the Company’s broader milestone‑driven commercialization and market adoption pathway. Forward-looking statements are based on management’s current expectations and assumptions, including, without limitation, assumptions regarding the technical performance and reproducibility of the Company’s Hydrochemolytic™ Technology at pilot and industrial scale; the successful scale‑up from pilot operations to FOAK production; the availability of feedstock and utilities on acceptable terms; the timely construction, commissioning, and operation of the FOAK Industrial Plant; the willingness of commercial counterparties to participate in validation, qualification, and offtake activities; the ability to negotiate and execute definitive commercial agreements on acceptable terms; the availability of financing to support construction and commercialization activities; the continued development of regulatory frameworks supporting circular hydrocarbons; and the absence of material adverse changes in market, economic, or regulatory conditions. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, risks related to the scale‑up and industrial performance of the Company’s technology; delays, cost overruns, or technical challenges associated with FOAK plant construction and commissioning; the risk that pilot‑scale results may not be replicated at industrial scale; variability in product quality, specifications, or yields; the risk that Hydrochemolytic™ oil may not meet downstream customer, regulatory, or certification requirements; the non‑binding nature of the LOI (other than the limited commitment to purchase an initial production parcel) and the risk that definitive agreements may not be executed or may be executed on terms less favorable than anticipated; uncertainty regarding the size, pricing, timing, and economics of any initial or future offtake volumes; dependence on third‑party partners, contractors, and service providers; changes in market demand for circular hydrocarbon feedstocks; competition from alternative recycling or conversion technologies; changes or delays in regulatory policies, including PPWR implementation or certification frameworks; availability and cost of capital; and other risks and uncertainties described in the Company’s public filings available on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward‑looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7809ce78-333d-4b72-9302-dd304686e959

FAQ

What does the March 12, 2026 LOI mean for Aduro (ADUR) FOAK production?

The LOI commits to purchase the initial FOAK production parcel, creating an initial commercial pathway for FOAK output. According to the company, the commitment supports downstream customer qualification, market development, and demonstration of industrial-scale reproducibility while remaining subject to definitive agreements.

How will the Pilot-to-FOAK validation program affect Hydrochemolytic™ oil specs for ADUR?

The program will define product specifications and reproducibility through phased testing and analytics. According to the company, Phase 1 focuses on contaminant profiling and boiling range, and Phase 2 validates commercial performance after FOAK commissioning.

Where will Aduro’s FOAK Industrial Plant be located under the LOI with the trading partner?

Aduro plans the FOAK Industrial Plant at Chemelot Industrial Park in Geleen, Netherlands. According to the company, the FOAK parcel purchase commitment is tied to initial production from that facility and downstream qualification activities.

Does the LOI with the trading company guarantee long-term offtake for Aduro (ADUR)?

No, the LOI is non-exclusive and non-binding except for the initial parcel purchase commitment, so long-term terms are not guaranteed. According to the company, parties intend to discuss a longer-term framework after FOAK production validation.

What technical evidence supports using Hydrochemolytic™ oil in petrochemical cracking for ADUR?

Pilot-scale steam cracking tests previously showed stable cracking performance under pilot conditions, supporting integration potential. According to the company, the product has low olefins and heteroatoms facilitating downstream upgrading with minimal extra treatment.

How does the LOI position Aduro (ADUR) for circular feedstock demand in Europe?

The LOI links product validation to market access amid tightening recycled-content rules in Europe, helping position Aduro to supply certified circular hydrocarbons. According to the company, structured offtake supports traceability, certification, and downstream customer qualification.