Recently, German biotech company BluCon Biotech and chemical giant LG Chem have entered into a new investment agreement.
Under the agreement, the two companies will collaborate to expand and commercialize BluCon's proprietary technology for the production of high-purity L-lactic acid. Lactic acid is a precursor of bio-based biodegradable PLA. For LG Chem, this investment will support and complement its bioeconomy portfolio, which includes next-generation materials such as PLAs and polybutylene adipate-co-terephthalates (PBATs).
The two companies have agreed to collaborate on BluCon's new process for converting non-food lignocellulosic feedstocks into lactic acid. To complement LG Chem, BluCon has developed a technology route that includes direct fermentation of lignocellulosic feedstock into lactic acid, thereby reducing production costs and making it possible to produce PLA, which can be priced competitively with fossil-based plastics.
Founded in 2017, BluCon Biotech co-founder and co-CEO Dr. Albrecht lüfer explains that the company uses proprietary bacteria to digest lignocellulosic biomass and produce lactic acid in a bioreactor, an efficient and cost-effective technology that is also a world first.
"This will lead to a commercially viable method that can produce lactic acid at a lower cost than conventional methods, making bio-based plastics competitive with fossil-based plastics," he said. The company is currently conducting a pilot run.
The flexibility of this technology platform means that it can also be used to produce other biological products such as ethanol or succinic acid.
The use of non-food raw materials from agricultural residues and waste streams from the pulp and paper industry eliminates any potential competition with the food chain and, in addition, it helps to protect the environment by reducing pollution from the burning of straw or bagasse.
BluCon has also previously received funding from the German Ministry of Economics and Climate Protection to expand its proprietary fermentation technology.
"We are proud to have earned the investment and support of LG Chem, one of the world's leading chemical companies with a clear commitment to carbon neutral growth by 2030 and net zero emissions by 2050," said Markus Fehr, co-founder and co-CEO.
BluCon plans to adapt its process to convert other feedstocks, such as wheat straw, into bioplastics. Other alternatives include corn stover, bagasse, cotton stalks, starch and algae. The company plans to license its technology to investors, the chemical and biotechnology industries, and large feedstock and bioplastics producers, generating revenue in this way through milestones, royalties and service fees. These plants are likely to be located in areas with ample supplies of raw materials and have the potential to bring development to remote rural areas around the globe.
