Australian innovator Nanollose (ASX: NC6) has partnered with Indian production giant Grasim Industries for the exclusive development of Nanollose’s tree-free fibres which are an alternative to Cellulose – a hidden polymer building block used in everyday life such as clothing and paper.
As the flagship business of Aditya Birla Group which delivered revenues of more than USD $43 billion in 2019, Grasim is a leading producer of cellulosic fibres globally and will work in collaboration with Nanollose to develop and share IP around conversion of cellulose into fibre on a commercial scale.
“We are thrilled to have Grasim as an industrial partner. This collaboration will allow Nanollose to scale with a globally recognised fibre maker and create a number of commercially ready sustainable fibre products that will meet the growing demand from brands seeking eco-friendly alternatives,” said Nanollose CEO, Alfie Germano.
“Grasim will also bring a high level of credibility when Nanollose begins offering textile and clothing brands with our breakthrough products.
“We feel this is a natural joining of forces that creates an alliance that will pioneer a new bio-material supply chain along with ticking many large sustainability boxes and increasing market demands”
Currently trading with a market cap around AUD $5m, Nanollose is focused on developing scalable technology to create fibres and fabrics with minimal environmental impact. Within the current marketplace, more than 150 million trees are lumbered annually for cellulose-based fibres and that number is expected to double over the next 10 years.
Using their current technology, Nanollose is able to ferment organic waste to extract tree-free cellulose which can then be spun into nullarbor™ fibre and yarn, which can then be manufactured into clothing products at a non-commercial scale.
In the coming years, pressure is expected to increase on clothing manufacturers which have already seen major brands committing to sustainable production. These include Zara which has pledged to reach 100% sustainable fabrics by 2025 and Nike’s ‘Move to Zero’ sustainability plan.
Collaborative access to Grasim’s facilities should enable Nanollose to advance closer towards commercialisation sooner with the Company last reporting cash reserves of just $600,000 in the bank after incurring a loss of $514,000 for the quarter ending 30 September, 2019.
Following news of the Grasim partnership, shares in NC6 rose 8.7% to an intra-day high of $0.075.