The funds raised from the placement will be used to advance the commercialisation of Leaf’s proprietary Glycell process, through the development of the company’s first commercial project.
The Glycell process is an innovative technology that uses a low cost, bio-degradable reagent glycerol, in a simple process that breaks down plant biomass into cellulosic sugars.
Cellulosic sugars are a major feedstock for green, bio-based chemicals, bio-plastics and biofuels.
The Glycell process can produce cellulosic sugars at under $50 per tonne (when co-products are included).
This compares with $220 per tonne for sugars produced from the conversion of corn starch.
Leaf will make a US$1 million payment in early November to Leaf Development, LLC (Leaf’s joint venture with Claeris LLC) for the development of the first commercial plant using Glycell.
The company has signed up with two Malaysian government agencies earlier this month to advance the development of a commercial-scale bio-chemical production facility that utilises Leaf’s proprietary technology.
Leaf’s share price has increased by 20% during the past one month, last trading at $0.18.
Leaf Resources bags $2.35M for cellulosic sugar project
Published: 08:00 02 Nov 2016 AEDT