02. May 2018
Symphony Environmental moves into the bioplastic sector
Symphony Environmental Technologies has signed a collaboration agreement and commitment to a strategic investment with French biotechnology start up, Eranova.
Eranova has developed a technology which extracts starch from algae which can be used to produce a range of compostable and biodegradable bioplastics. Other applications include biofuel, biopolymers, proteins for food and animal feed stock, and by-products for the pharmaceutical and cosmetic industries.
The key benefits of the technology, said Symphony, are, among other things, the fact that a natural, renewable waste product which pollutes beaches can now be put to good use; also, algae are a non-food-based resource, which do not impact the food industry, in addition to providing higher yields per hectare due to the fast growing rate of algae.
The agreement marks Symphony’s first move into the bioplastics sector. The UK-based company is a producer of a wide range of polymer masterbatches and additives, including oxo-degradable and anti-microbial technologies.
Under the agreement, Symphony will subscribe EUR500,122 for an 8.0% holding in Eranova when fully funded to start its pre-industrial development, with an option to increase its stake to 51% in one or more tranches at any time within three years of the initial investment.
In addition, Symphony will have the right to buy 75% of Eranova's compounds made in the Middle East and North Africa, for sale as compound or in manufactured finished products within the Middle East region exclusively, and on a non-exclusive basis globally, excepting thirteen (mainly European) countries for which Eranova will have exclusivity.
According to Symphony, Eranova needed some €4,790,000 to start its pre-industrial development, of which Symphony’s investment represents one of the final tranches required. Next to €1.03mln in funding from the French Environmental & Energy Management Agency (ADEME), Eranova has also received funds from the French region of Provence Alpes Cote d’Azur together with private investment and soft loans.
Pre-industrial development is expected to start in the second half of 2018 and will consist of constructing long seawater tanks, called "raceways", where Eranova will optimise cultivation of algae for production. The raceways constructed during this phase will represent 1/50th of a full commercial facility and will cover 1.2 hectares. During this phase, too, starch will be extracted for conversion into bioplastic compounds.
Eranova has also signed an agreement to begin installation of the pre-industrial development with the Grand Port de Marseille, with TOTAL TDR, a division of petrochemical giant TOTAL, supporting certain employment costs due to the innovative nature of the technology.
Michael Laurier, Symphony chief executive, said: "This investment and collaboration agreement adds another key environmental technology to Symphony's range of smarter plastics, and gives the Group an exciting position in the bioplastics market which, according to a recent report by Zion Market Research, is growing at a rate of 12.5% per annum and will reach a value of $35.5bn by 2022.”
Philippe Lavoisier, chief executive of Eranova, added: "We are pleased to have Symphony as an investor in Eranova. Green algae are a major issue for the environment, and our technology will be used to collect and use this pollutant as a source to manufacture an odourless, colourless, compostable and biodegradable range of bioplastics without creating competition with food production.”