Leaf Resources Limited (ASX: LER) is an Australian leading material company engaged in converting plant biomass into industrial sugars. Their proprietary process for converting biomass-to-functional industrial sugars enable a myriad of downstream technologies to produce renewable chemicals that will substitute petrochemicals used in manufacturing today. With the project development and continued technical innovation, the company is building a robust global business cantered on renewable carbon-containing products to deliver environmental and economic benefits to the shareholders.
Today, the company announced that it had appointed TechnipFMC to conduct the Front-End Loading level 3 (FEL3) study over LER Malaysia’s Segamat Biorefinery project. The company hosted a competitive bidding process contest in which many leading engineering companies participated, and after an impressive bid by TechnipFMC, it was awarded the contract.
The FEL3 study will determine the final engineering design on a site-specific basis, including the incorporation of utilities.
TechnipFMC is a UK based international engineering company delivering greater efficiency across project lifecycles from a thought to the delivery of the project and beyond. It is operative in 48 countries along with Malaysia.
LER plans to establish a biorefinery at Segamat in Malaysia, incorporating its proprietary GlycellTM process for which the company has obtained a manufacturing license from the relevant Malaysian authorities. The GlycellTM technology converts plant waste into a valuable industrial sugar (hexose and pentose) or a chemical that can be used in many products or by downstream manufacturing companies.
TechnipFMC will provide its international engineering team’s experience and capabilities to the FEL3 study. It will help LER to fulfill any further requirements for the manufacturing license. The study is expected to begin from the next week with an anticipated date of completion in August 2019.
As per the management, TechnipFMC showed its keen interest in the world of renewable chemicals made from industrial sugars sourced from biomass, after having a strong presence in the oil and gas sector. Further, it demonstrated how it might add value to determine the final engineering design for Segamat biorefinery site.
On 18 December 2018, LER announced that it has partnered with Bioprocess Pilot Facility (BPF) in Delft, The Netherlands, to perform a series of Integrated Demonstration Studies (IDS) to focus on refining and validating the GlycellTM manufacturing process and further test this process under pilot industrial conditions including various hardware components.
After the completion of the Phase 3 IDS and FEL3 study, it will enable the institutional grade bankable feasibility study to be completed to support final due diligence and project financing. The IDS is expected to be completed by June 2019 end, with information for the bankable feasibility study from the IDS to progressively become available starting in April 2019.
LER has also entered with Radium Capital, engaged in providing funds to Australian businesses running successful R&D programs, for the advance payment of funds to be received under the Australian R&D tax incentive, under which LER had received $660,000 from Radium for July-October 2018.
During 2018, the scrip price has dipped by over 48% and is currently trading at 5.2 cents. Even today, the scrip price has plunged by 8.8% as per the previous close of 5.7 cents.
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