merrion street

Galway based greentech company, Cellulac*, has been approved for a record

€2.8m grant from the European Commission to commercialise its biorefining

technology that converts agricultural waste into lactic acid.

Cellulac is a high-potential start up client of Enterprise Ireland which

supported the company in its bid for this significant grant. Lactic acid is

used in food and beverages, cosmetics, pharmaceuticals, biodegradable

plastics and other industrial sectors. It is a growing €4Bn pa market and

is expanding at a rate of 19% per year.

The EU grant approval, which will anchor a consortium of funding from

State, institutional and private investors, will be used to prove mass

production capability. Possible locations for the demonstration plant -

where lactic acid will be produced at an industrial level with the goal of

licensing the technology world wide - are currently being scouted in

Ireland and the EU.

Cellulac will create 14 high quality jobs and will be recruiting graduates

from the life sciences and engineering sectors to grow its research base in

Ireland.

Congratulating Cellulac on its win, Seán Sherlock T.D. Minister for

Research & Innovation said;

“The size of the EU Commission grant for the Cellulac project indicates the

high-commercial potential of the finished product - Lactic acid and the

importance of biorefining as a future growth industry. I am delighted to

see one of Enterprise Ireland’s high-potential start-up clients make such a

strong impression in this EU initiative, which seeks to bridge the gap

between research and the market. Both the Irish Government and the EU

Commission are encouraging SMEs to convert good ideas for innovative

products, services and processes that protect the environment into

fully-fledged commercial prospects so I am particularly encouraged by

Cellulacs’ success”.

Speaking about the EU grant approval Fin Murray, Cellulac CEO said; "This

win and our confidence that Cellulac will be filling key R&D roles locally

is a testament to the investment poured into the development of the life

sciences and green tech sectors over the last number of years. GMIT, NUI

Galway and the Technology Centre for Biorefining and Bioenergy supported by

Enterprise Ireland and IDA Ireland, will prove to be key supports for

greentech companies like ours”.

Murray continued, "We would like to publicly recognise the support of

Enterprise Ireland to date. We are actively fundraising at the moment and

are interested in hearing from potential investors with domain knowledge or

potential partners that have a stake in this exciting new industry.”

Enterprise Ireland’s CIP Eco-innovation National Contact Point Mark Sweeney

said "We are delighted with this success for an Irish company under the CIP

Eco-innovation Programme. The 2012 call is open soon and we are actively

looking for companies with innovative products and processes that reduce

environmental impacts”.

Any interested companies should contact mark.sweeney@enterprise-ireland.com

for more information."

Photographs to issue from Gary O’Neill Photography, 087/7974300

ENDS

*Cellulac is the trading name of Sustainable Biopolymers Ltd

Further information: Fionan Murray 086 606 3606

Editors Notes

About Cellulac

Cellulac is an Enterprise Ireland supported start up specialising in

research on the use of biomass as an alternative to petroleum and

foodstocks in the production of lactic acid. In 2010, the company

successfully produced 1 tonne of high quality acid from wheat straw at an

industrial plant in Germany. Patents were filed and continue to be filed

for this technology in key territories around the world. In 2012 the EU

approved a grant of €2.8m for the further development and commercialisation

of the technology.

EU Commission

The grant falls under the EU Commission’s Competitiveness and Innovation

Framework Programme’s, Eco-Innovation initiative (CIP Eco-innovation) -

First Application and Market Replication Projects and is managed by the

Executive Agency for Competitiveness and Innovation in cooperation with DG

Environment.

Lactic Acid

The Food & Beverages Industry constitutes a major market, driving growth.

It is also a key ingredient in the Pharma, Chemical and Medical sectors. It

is used as a key ingredient in pharmaceutical products such as intravenous

solutions, moisturisers, shampoos, anti-aging skin creams and soaps. Food

additives constitutes a large application area for lactic acid globally.

Biodegradable plastics represents the fastest growing end-use application

for lactic acid.

In China as well as other Asian countries demand is outstripping supply.

The United States represents the largest region for lactic acid worldwide.

Growth-wise, Europe is projected to be the fastest growing regional market

With demand for lactic acid-based biopolymers expanding at the cost of

conventional polymers on counts of environmental friendliness, easy

recyclability and cost-effectiveness, emergence of new lucrative

opportunities are portended for lactic acid consumption in the coming

years.