Leaf Energy (ASX: LER) has entered into a collaborative and royalty agreement with Actinogen Limited (ASX: ACW) for a bioethanol project involving Leaf's glycerol pretreatment process.
Under the terms of the agreement Leaf will fund further studies in the bioethanol project, where strains of actinomycetes produce enzymes such as cellulase which break down cellulose from plant material, papers and industrial waste biomass.
These enzymatic reactions are an important step in the production of second generation bioethanols.
Leaf Energy’s glycerol pretreatment process is complementary, using the cheap, recyclable glycerol to break down plant matter into lignin, cellulose and hemicellulose at low temperature and pressure.
The cellulose and hemicellulose are then available for conversion to sugars using enzymatic hydrolysis, which can then be converted to advanced biofuels, bioplastics and green chemicals
On success of the initial trial, Leaf will have the option to contribute further funding to explore the potential synergy of other actinomycetes, specifically those identified to produce lignase and shikimic acid, for the use in its biomass processes.
Leaf will gain the rights to use any method of production developed as part of the collaborative process, in return for payment of a net profit royalty to Actinogen from future licensing arrangements, which are confidential in nature.
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