Fermented fabric maker Nanollose surged 22 per cent after showing off the world’s first plant-free rayon fibre — which it hopes will revolutionise sustainable fashion.
It’s the first commercially valued fibre made by the Perth-based company using a process which converts waste from beer, wine and liquid food industries into fabric-making cellulose.
Nanollose (ASX:NC6) shares were buoyed by the news, climbing 22 per cent to 22c on Tuesday morning, valuing the company at $13.5 million.
Traditional viscose-rayon is a well-established fibre predominantly derived from wood-pulp and treated with chemicals, used to make everything from home furnishings to clothing.
Nanollose’s Managing Director, Alfie Germano, said the new product would create a sustainable alternative:
“Each year a huge amount of trees are cut down to produce wood-based fibres like rayon.
“Today’s breakthrough takes Nanollose one step closer to commercialising our sustainable fibres as a very real alternative so we positively impact and reduce the cutting down of trees and use of toxic processes to create clothing.”
Nanollose has also filed a provisional patent to protect its unique processing method, where microbial cellulose is turned into viscose dope which is then turned into rayon.
The current market for rayon is valued at $US10 billion ($13.1 billion) and expected to grow to $US16.3 billion in the next two years.
Nanollose caught the public’s attention for their beer and wine-based dresses before listing at 20c on the ASX earlier this year.
The shares have traded between 18c and 22c since October.
The plant-free fabric comes as fast-fashion chain H&M set goals of sustainability earlier this year – making a commitment to use 100 per cent recycled or other sustainably sourced materials by 2030.
“The entire industry is experiencing a green wind of change that is customer driven, every day we see headlines showing this shift is becoming more solidified, and we believe we have a solution” Mr Germano said.