Australian plant-tech company Nanollose Ltd (ASX: NC6) has partnered with global wet wipes manufacturer Codi Group to develop an eco-friendly wipes product, a market which has traditionally been dependent on oil-based raw materials.
The Cooperation Agreement stems from a trial batch of Nanollose’s Tree-Free fibre which was sent to Codi earlier in the year for further testing. Codi subsequently converted the fibre into a nonwoven fabric which has the potential to be a world-first sustainable material that is 100% biodegradable.
“We are delighted to be working with one of Europe’s leading manufacturers of wipes,” said Nanollose Chairman, Dr Wayne Best.
“Codi’s commitment to innovation, sustainability and the environment make it the ideal partner for Nanollose in the wipes market.”
The wipes market was estimated to be worth US $13.2 billion in 2018 but with population growth and greater access to sanitary products, that figure is expected to reach $17.3b by 2023 according to a Smithers Pira report.
Oil-based fibres have raised increasing concerns from environmental regulators whilst the disposable nature of wipes make them a product ripe for innovative improvements like those being explored by Nanollose and Codi Group which currently produce more than 7 billion wipes per year.
“This cooperation agreement with our partner Nanollose is at the heart of our Codi Group strategy to drive real sustainability into our products,” said Codi Group’s CEO, Fridjov Broersen.
“In close cooperation with our customers we are delighted to be able to lead our markets into new opportunities.”
Nanollose’s Tree-Free product Nullarbor™ fibre has already validated as wearable garments as part of the Company’s waste-to-clothing strategy and in May, secured supply of microbial cellulose for the commercialisation of its Nullarbor™ fibre.
Early morning trade following the Codi partnership announcement saw shares in NC6 rise as high as $0.125 (+50.6%) after opening this morning at $0.083.