Juice maker Food Revolution will turn orange scraps into $1 million worth of sales a year under a deal with essential oils maker Natural Fractions.

Food Revolution (ASX:FOD) makes juices, fibres and fruit water products from its plant in Victoria’s Mill Park and last year sold $35 million worth of product. It uses a processing technology developed by the CSIRO

Food Rev turned a $1.9 million profit last year.

The company told investors on Wednesday it had secured another revenue stream, selling $1 million worth of orange oil to Natural Fractions each year for the next two years.

Orange oil can be used for a range of antibacterial, anti-inflammatory and disinfectants.

Sales of the cold-pressed orange oil will “create a new product without the need for additional raw material” because the product will be created from scraps created during the juicing process.

The Food Revolution (ASX:FOD) share price, past 12 months.

In June, company told investors it had spent “a significant amount” on research and development on orange oil production.

At the time the team had worked out how to extract the oil and said it had already secured sales agreements for the product, which it reckons it can produce 80 tonnes of each year to contribute $1 million annually in revenue.

In the first half of the 2018 year, the company sold generated $17 million in customer receipts and reported a $34,000 profit. This was a 98 per cent drop on the prior corresponding period’s profit, due to a delay in receiving and R&D tax offset.

At the end of December, Food Revolution had $888,000 cash in the bank. The share price is up 7 per cent over the past year to 6c.