Leaf Resources is working on plant-based packaging as marketers phase out plastic
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Environmental horror stories such as plastic outnumbering fish in the world’s oceans by 2050 are accelerating a move among brands to recyclable replacements, says Leaf Resources.
Leaf, which focuses on breaking down “plant-derived biomass into renewable and biodegradable products”, says a “war on plastics” is “now shaping the marketing plan for all consumer goods companies”.
Earlier this year, for example, McDonald’s Corp said it would switch to environmentally friendly packing materials and offer recycling in all of its restaurants in a bid to “use our scale for good”.
Foam packaging of old will be banished as soon as the end of this year, and Leaf Resources (ASX:LER) says it has just the alternative.
“Leaf Resources technologies are positioned to be a key enabler to the success of such ambitions,” the company says.
“Leaf’s industrial sugars are a vital feedstock for the production of biodegradable bioplastic and renewable chemicals and Leaf’s new biodegradable renewably sourced packaging product LEAFcoat can increase recycling and replace plastics.”
Leaf’s first commercial scale biorefinery is in the works in Malaysia, where waste products from oil palms provide the perfect biomass for production.
Leaf shares closed at 9.3c on Wednesday, steady since the announcement of its letter of intent to collaborate with Malaysian Biovision and Greenenergy.
The quarterly spelled out key goals for the coming year – with development and refinement of its technology and facility the main focus.
But there’s no production on the cards just yet.
The company reported $3.5 million cash in the bank at the end of December after a $3 million raise at an issue price of 9c earlier that month.
Forecast spending is in the realm of $1.9 million – most of which relates to a trial of its equipment.