Actinogen Limited (ASX: ACW) has entered into a collaborative and royalty agreement with Leaf Energy (ASX: LER) for its bioethanol project.
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.
An independent study by the CSIRO has confirmed Actinogen's ability to produce cellulases, and was shown to be more active than its comparative commercially available preparations.
Actinogen’s process can potentially be more cost effective than current methods, and avoid the need to rely on human food stocks as the source material.
The traditional method of producing cellulase is usually performed in an anaerobic environment at high temperatures, which requires infrastructure capital.
Actinogen can produce cellulase in an aerobic environment at room temperature, which may significantly lower costs.
Leaf Energy’s glycerol pretreatment process is complementary, using the cheap, recyclable glycerol in a simple process 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 and those sugars 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 towards additional trials to explore the potential synergy of other actinomycetes, specifically those identified to produce lignase and shikimic acid, for the use in its biomass processes.
Actinogen will grant leaf the rights use any methods of production solely developed as part of the collaborative process, in return for a net profit royalty on Leaf's future licensing arrangements, which are confidential in nature.
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