Appendix 4E and Annual Report
Perth, Aug 26, 2022 AEST (ABN Newswire) - The period marked a transformational year for Nanollose Limited (ASX:NC6) (N0L:FRA), underpinned by a series of critical R&D breakthroughs.
Excitingly for the board and management team, the successful achievement of those objectives leaves the Company uniquely positioned to pursue commercial opportunities at a time when the global garment sector - one of the world's largest industries by annual turnover - is shifting its significant resources towards the development of sustainable production solutions.
The highlight of the Company's R&D achievements over the last 12 months was the successful execution of a pilot production spin of Nullarbor(TM) fibres. The production was undertaken with technology developed jointly by Nanollose and Birla Cellulose and for which a patent application was filed in January 2021. The Tree-Free and Forest-Friendly technology uses various wastes and by-products from the food and agricultural industries.
The pilot spin successfully produced over 250kg of Forest-Friendly Nullarbor-20(TM) fibre with a targeted blend of 20% microbial cellulose and 80% conventional wood pulp. Importantly, what it also demonstrated is that Nanollose's technology fits seamlessly within existing factory operations of fibre and fabric manufacturers; clear evidence of its practical application and capacity to scale.
For the ongoing development of its technology, Nanollose is proud to be working with Birla Cellulose, which is a global leader in sustainable fibre technology research. Birla Cellulose operates as a business unit within the Aditya Birla Group, the world's largest producer of rayon fibres with over 140,000 employees globally. The collaboration with Birla Cellulose marks one of a number of strategic partnerships established over the past year that help place Nanollose at the forefront of key changes taking place in the global garment industry.
Nanollose continued to grow its partner base during the period, securing agreements with several leading clothing and materials manufacturers. This was underpinned by a binding Memorandum of Understanding with multinational clothing company Inditex. The MOU with Inditex, as well as other strategic agreements secured during the period provide considerable validation of the Company's approach and potential. These partnerships further reflect the ever-increasing level of interest among the world's largest fashion and textile brands to develop sustainable production solutions.
Nanollose's board and management team are confident it now has the pieces in place to establish a lucrative position at the forefront of the fashion industry's shift towards sustainability. While the year marked a transformational period in R&D, the Company expects the years ahead will bring exciting opportunities to convert its R&D into material commercial contracts.
Management has now turned its focus to increasing the scale and percentage of microbial cellulose in its pilot production, and the business development opportunities that this presents. Management is also looking towards securing a long-term commercial supply of microbial cellulose dedicated to fibre production. In addition, now that the fibre technology has transitioned out of the laboratory and into the pilot plant, Nanollose has begun an exciting project to make an animal-free and plastic-free leather alternative from microbial cellulose.
As the sustainable fashion shift accelerates, Nanollose aims to be a leading player in the global transition using Australian innovations and world class global partners.
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About Nanollose Limited
Nanollose Limited (ASX:NC6) is an innovative Australian company that uses a low cost and eco-friendly fermentation process to grow fibres that could become a sustainable alternative to conventional plant-derived cellulose fibres. The Company's process, which uses streams from various large-scale industries like sugar, wine and food, has the ability to produce 'Plant-Free' Cellulose. Cellulose is the hidden building block polymer most consumers know nothing about, but forms a huge part of items used in their everyday life such as clothing, paper and hygiene products.