Quarterly Activities Report
Perth, Jan 31, 2022 AEST (ABN Newswire) - Nanollose Limited (
ASX:NC6) (N0L:FRA) a leading biomaterials company commercialising scalable technology to create fibres and fabrics with minimal environmental impact, is pleased to provide shareholders and investors with an overview of activities for the period ending 31 December 2021 ("Quarter", "Reporting Period").
Commenting on the Quarter, Nanollose Executive Chairman, Wayne Best, said: "During the December 2021 Quarter, the Company continued to work with Birla Cellulose towards finalising the first pilot spin, which has been slightly delayed due to Covid-19 related disruptions, and which we are now expecting to be completed in February. During the Quarter, Nanollose achieved a key milestone, with the completion of the penultimate step in the manufacture of NullarborTM lyocell fibre, being the first pilot scale processing of MC. We look forward to updating shareholders regarding the pilot spin shortly."
Operational
Pilot Production of NullarborTM Fibres
During the Reporting Period, Nanollose continued to advance towards completion of the first pilot fibre spin. Due to Covid-19 related delays, the pilot fibre spin is now anticipated to complete in February, which will mark the most important milestone yet towards the commercialisation of the Company's Tree-Free Nullarbor lyocell fibre.
The Reporting Period marked the successful completion of the penultimate step in the manufacturing of Nullarbor fibre, the processing of raw MC into material suitable for use in the lyocell process. This step is a key milestone for the Company with the specific technical goals of the pilot trial being achieved as planned. The Company noted during the Quarter that final preparatory testing of the resultant processed MC identified that a small quantity of fine metal particles was introduced during the drying process. Whilst the metal particles were not ultimately able to be removed from the specific batch of MC in an efficient manner, the source of the metal particles was identified as related to an isolated event from the drying equipment, which was subsequently resolved and will not affect future work. The achievement of this processing step significantly reduced a key risk of the pilot program, with the achievement of this result at pilot scale marking the passing of another important milestone.
The Company has since supplied Birla Cellulose with an additional batch of MC, and its processing in preparation for the pilot fibre spin is almost complete, and has proceeded without incident.
Work is also ongoing to incorporate the information gained from these initial pilot trials into improvements in MC production in order to streamline the overall waste to fibre process. During the Reporting Period the Company continued to refine product specifications and define and further refine quality control policies and procedures, utilising knowledge gained in the leadup to the pilot spin. Refinements and further definition will be ongoing through to commercial production.
Potential Offtake Partners
During the Reporting Period, the Company continued to advance discussions with leading fashion and textile brands that have expressed an interest in obtaining material from the Company. The Company continued to work closely with its fashion consultant, Carla Woidt, to shortlist the most suitable partners for the Company's strategy going forward.
The Company has focussed on shortlisting high quality partners that have a commitment to sustainable solutions for the fashion industry's environmental challenges, and that are seeking a long-term relationship with Nanollose.
The Company is looking forward to formalising these negotiations during the current quarter, following completion of the pilot spin, when it will be in a position to provide samples to selected partners for trials and testing.
Joint Patent Application Update - Grasim
The Company is pleased to announce that shortly following the end of the Quarter, the Company's joint patent application (entitled High Tenacity Lyocell Fibres From Bacterial Cellulose and Method of Preparation Thereof) with Grasim Industries Limited ("Grasim") was filed globally via the Patent Cooperation Treaty (PCT).
The Company is pleased with the progress being made towards finalising formal patent protection of its intellectual property, and is pleased with the continued commitment from Grasim to the success of the project.
Production of First 100% NullarborTM Lyocell Garment
During the Quarter, Nanollose and Birla Cellulose produced a small quantity of 100% Tree-Free Nullarbor lyocell fibre, which is in the process of being converted into yarn. Working closely with Carla Woidt, Nanollose engaged one of Australia's leading fashion designers, who has designed a garment to showcase this revolutionary fibre. Nanollose has also contracted an Australian based garment manufacturer, who will use this design to transform the yarn into the Company's first garment made from 100% Nullarbor lyocell.
The Company expects to be in a position to unveil the completed garment by the end of this quarter, and looks forward to having a tangible product available to showcase to the market the quality, feel, and appeal of its fibre.
Internal Research and Development Projects
During the Quarter, the Company continued to progress internal research and development initiatives, including improvements to the Company's Jelli GrowTM product, development of an MC-based alternative to leather, and the development of absorbency materials.
The Company looks forward to updating the market on these projects as significant milestones are determined and met.
Six Monthly Outlook
As Nanollose continues to progress towards the commercialisation of its next generation, Tree-Free fibres, there are several key milestones that the Company aims to achieve in the coming six months:
- Undertake the first pilot spin of Nanollose's NullarborTM lyocell fibre (anticipated to occur in February).
- Enter into a number of agreements to provide initial quantities of fibre from the first pilot spin to selected partners.
- Continue implementing refinements into MC production and procure material to support ongoing pilot production of fibre.
- Supply initial quantities of fibre, yarns, and textiles from the pilot spin to selected partners.
- Commence product trials with leading global brands in the fashion and apparel industry.
- Explore the use of high tenacity Tree-Free lyocell for use in the nonwoven sector as the Company seeks to commercialise NufoliumTM for nonwoven fibre applications, including personal wipes (which is a high growth market).
- Undertake second and subsequent pilot processing and spins at increased scale.
- Explore commercial opportunities for second and subsequent pilot spins.
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/T97A2CEG
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.
| ||
|
