Leaf Resources has secured a license for an innovative biodegradable coating product for the packaging market. The product is based on lignin and also utilizes glycerol, two of the products that Leaf’s Glycell™ process will produce.
The technology was licensed from QUT bluebox, the commercial arm of the Queensland University of Technology (QUT) and was developed as a long term QUT project that included Dr. Les Edye, Head of Research and Development while an Adjunct Professor at QUT.
The coating technique uses natural ingredients and produces a biodegradable product, it is not only suitable for the established corrugated board and mulching markets, but also a potential solution to the disposable coffee cup problem.
Strategically Ideal for Leaf Resources
This biodegradable coating is strategically advantageous for Leaf Resources as:
Focusing on Three Segments of The Market
- It complements and enhances the economics of our Glycell™ process as it utilizes two of Leaf’s core products, lignin and glycerol
- With this license, Leaf will reposition lignin from the Glycell™ process as a high value bio-based, renewable lignin barrier coating, instead of burning it as fuel
- The product will be sold as a coating into the paper market where Leaf has strong industry contacts
- Low cost entry to the market through the terms of the license agreement
- No capital required for initial production as coating can be toll manufactured
- It could deliver short term cash flow to Leaf within the next 12 months
- Pre-market testing already completed by QUT
Leaf’s coating strategy will look towards three segments of the market where the biodegradable coating has natural advantages.
Corrugated Board market - The Biodegradable coating was developed to replace the traditional, petroleum based wax coatings and various plastic coatings used to waterproof the paper or cardboard.
Mulching Markets: Testing shows that barrier coating can replace black polyethylene as a mulch with additional benefits that it biodegrades to put beneficial carbon back in the soil.
Food & Beverage Packaging - As a biodegradable, recyclable and renewable sourced natural product it is a potential solution to the 487 billion cups a year disposed of worldwide each year2 (second largest contributor to waste).
Leaf has signed an exclusive license contract with QUT bluebox for Malaysia, USA, Canada and Brazil.
Leaf Managing Director Ken Richards said:
“This is a wonderful opportunity for Leaf Resources to grow and to continue working with QUT. We are fortunate to secure an innovative technology that delivers a much-needed product to the market, complements our core strategy so well and can deliver shorter-term cash flows to Leaf Resources.”
QUT bluebox CEO Tim McLennan commented:
“We are pleased to welcome Leaf Resources as a licensee for this tremendously promising product that showcases Queensland innovation. Leaf Resources has very strong contacts in their licensed territories and we look forward to their success in those areas.”