Leaf Resources executes MoU with Biovision & Greenergy to secure essential feedstock

Leaf Resources ASX LER MoU Biovision Greenergy feedstock plant biomass fruit bunch fibre
Leaf Resources has secured a feedstock source for its planned Malaysian biorefining facility.

Renewable chemical developer Leaf Resources (ASX: LER) has secured fibre feedstock supply after executing an agreement with Malaysia-based Biovision & Greenergy.

Leaf Resources plans to develop a biorefining facility in Malaysia and this agreement with Biovision & Greenergy will provide it with its necessary empty fruit bunch fibre feedstock.

Additionally, under the memorandum of understanding (MoU), Biovision & Greenergy will assist Leaf Resources while it develops the facility to firm up protocols for delivering and storing the empty fruit bunch fibre.

Once made definitive, the agreement will have an initial 10-year term and Biovision & Greenergy will supply Leaf Resources with 100,000 bone dry tonnes a year of empty fruit bunch fibre.

When its biorefining facility is operational, Leaf Resources will use the empty fruit bunch fibre to generate industrial sugars, lignin and refined glycerol using its proprietary Glycell process.

“Signing this MoU with Biovision & Greenergy is another important step forward for Leaf Resources as we continue to build momentum in developing our first biorefining facility in Malaysia as part of our joint venture with Claeris,” Leaf Resources managing director Ken Richards said.

Glycell process advances

Late last month, Leaf Resources reported it had successfully completed its phase two integrated demonstration study for its Glycell process.

The phase two study was undertaken at a pilot facility in Holland and Leaf Resources produced samples of C6 industrial sugars and lignin.

A phase three study will begin in October to optimise and validate the Glycell technology further.

Data from the phase three demonstration will be used for the front-end loading engineering test work, which will eventually be incorporated in the final engineered design for the Malaysian plant.

A bankable feasibility study will then be conducted to shore up final due diligence and project financing.

Glycell works by converting plant biomass to industrial sugars to produce renewable chemicals that can replace petrochemicals currently used in manufacturing.

According to Leaf Resources, the process recycles waste and generates a more environmentally friendly alternative to petrochemicals.

The company claims its technology affords both environmental and economic “benefits” to the world.

Leaf Resources’ share price remained steady at A$0.083 in early morning trade.

Lorna has more than 10 years experience as a finance journalist and editor. She has written for an array of industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has covered a myriad of small and large cap ASX and dual-listed stocks.