Leaf Resources (ASX: LER) Joins the Eco Friendly Crusade

KEY TAKEAWAYS:

• Leaf Resources Ltd (ASX: LER) is producing a biodegradable coating for packaging products.
• The company was granted license to manufacture an eco-friendly product by QUT bluebox.
• Leaf now obtains exclusive right to produce this material in the US, Canada, Brazil and Malaysia.

In a bid to encourage the use of sustainable products, Leaf Resources Ltd (ASX: LER) made known its intention of producing a biodegradable coating for packaging products. The company was granted license to manufacture an eco-friendly product by QUT bluebox and will use lignin and glycerol as raw materials. Through the license it has acquired, Leaf now enjoys exclusive right to produce this material in the US, Canada, Brazil and Malaysia.

Given the growing environmental concerns and increasing proclivity towards eco-friendly products, Leaf’s move is regarded as being in step with the existing trend. It puts the company in a favourable position to capitalize on the fast-growing market of these products which is expected to touch the 14 billion mark over the next 5 years. Courtesy of the current growth rate of 17.2% in this segment, Leaf hopes to reap rich rewards from its innovative approach.

At the core of Leaf’s business is Glycell technology which featured pretreatment of the biomass through a combination of engineering and chemistry. This process makes use of glycerol and requires low temperature and low pressure to effectively break down the plant material in order to generate cellulose concentrate. As compared to the traditional feedstock that was previously used, cellulose not only helps in reducing capital costs but also improves operational efficiency.

With the demand for biodegradable products expected to rise over the coming months, Leaf Resources Ltd is poised to make its mark in this segment with the help of state-of-the-art technology. By transforming plant material into eco-friendly products, Leaf hopes to make a substantial contribution in steering consumers away from harsh chemicals and petroleum-based products that tend to leave a carbon footprint.

To this effect, the company’s recent acquisition of the Malaysian Biorefinery is yet another step in the strategy to develop biodegradable packaging materials.

About Leaf Resources Limited (ASX: LER)

Leaf Resources is an emerging renewable chemical company focused on commercialising the GlycellTM process; A disruptive technology that alters the economics of using biomass as a feedstock for the production of industrial sugars that can be used to produce biobased chemicals, bioplastics and other renewable products. Leaf Resources was voted #4 of the Hottest Small Companies in the Advanced Bio-Economy 2016/17 ABLC San Fran.

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