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Cellulac Intends to Produce 20,000 Tons Per Annum of Lactic Acid at its Germany Facility

Published on 2013-12-26. Author : SpecialChem

DUNDALK, Co. Louth -- Cellulac plc ("cellulac"), the first company to convert brewery facilities for the sustainable production of lactic acid from second generation (2G) feedstocks, recently announced an agreement to lease a 6.8 acre site in Dundalk from the Irish Whiskey Company which is developing a distillery on the balance of the 13 acre site which was until recently the home of the second largest brewery in Ireland.

Cellulac intends to retrofit the facility and incorporate its end-to-end chemical and process engineering platform to produce Lactic Acid and Polylactic Acid for biodegradable plastics, Ethyl Lactate, a green solvent, and Sodium Lactate. The Company has produced lactic acid at a pilot plant in Potsdam, Germany. It expects to ramp up production at the facility initially to 20,000 tons per annum, which will have a revenue value in excess of €40 million, for export by the end of 2015. Operations are expected to commence by June 2014.

Project Highlights:
  • Production of lactic acid at 40% below current producers costs
  • Flexibility to use agricultural and brewery waste as well as dairy by-products
  • Phase 1 (20,000 tons) to provide 30 full time jobs
  • Phase 2 (100,000 tons) to increase to 60 full time jobs
  • $1.6 billion market for lactic acid based biochemicals
  • Market growth forecast at 20% per annum until 2025

The proprietary end-to-end platform involves the integration of a number of complementary technologies that cellulac has acquired or developed. These include enzyme cocktails, fermentation protocols, non-genetically modified bacteria (non-GMO) and SoniqueFlo™, all of which are protected by an extensive portfolio of 136 patents (granted and pending).

Gerard Brandon Chief Executive Officer of cellulac said: "Ireland has a world-wide reputation for quality food ingredients derived from the agricultural sector. It is fitting, therefore, that we are at the forefront of the new bio-economy sector. With the support of the European Union we will convert, part of what was until recently, the 2nd largest brewery in Ireland into what will be the largest producer of lactic acid from agricultural waste and dairy by-products. This will not only directly breath new opportunity into Dundalk by creating 30 jobs, but it will also indirectly support agricultural jobs in the rural community and generate local taxes that will benefit the area. Today's agreement is an important step in accelerating our plans for commercial production. We look forward to commissioning the retrofitted and repurposed facility by mid-2014."

Sean Sherlock T.D. Minister for Science & Innovation commented: "I am delighted at this announcement by the company of its plans to create 30 new jobs for Dundalk. This is a shining example of EU and Government supporting science and innovation to cross-over to industry. We are delighted to be involved in this environmentally friendly project that not only creates new jobs, increases GDP and exports but contributes to the reduction of our Country's lower carbon emission targets to benefit the community as a whole."

About Cellulac

Cellulac is a science, technology and industrial biochemicals company creating a new paradigm in ‘green' chemical manufacturing. The company employs patent protected micro-organisms and a patent protected proprietary process for the manufacture of a broad array of high-value biochemicals and is in the process of initiating the first straw to lactic acid commercial venture in the world. Cellulac has been provided with the largest EU Competitive Innovation Fund grant for late stage commercialization of technology in 2012 of €2.78m (£2.2m). Other financial supports include €168,000 (£135,180) from The Bio-Refinery Competence Centre (TBCC) in Ireland and €288,000 has been provided by FFG in Austria.

Source: Cellulac


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