I don't think a "hold" rating is desperate. I'm just pleased that BIOM is making progress in a very difficult market. If the lignin project is successful and plastics can be made cheaper than oil-based plastics, then it will be a winner. Did you watch the video with Tim Bugg ?
Check out BIOM website for the latest (9 June 2014). http://www.biomebioplastics.com/research-confirms-next-generation-bioplastics-could-be-made-from-trees/
31 Jul '14
More info on BIOM's lignin study
Biome Bioplastics is conducting research into a new, plentiful source of organic chemicals for the manufacture of bioplastics that could significantly reduce costs, expand functionality and increase performance. Backed by a grant from the UK’s innovation agency, the Technology Strategy Board, and working in partnership with the University of Warwick’s Centre for Industrial Biotechnology and Biorefining, we are conducting a pioneering project to investigate the possibility of using lignin as an alternative, bio-based source of aromatic chemicals. The project has successfully demonstrated that bacteria can be effective in the selective degradation of lignin, and that the breakdown pathway can be controlled and improved using synthetic biology. Crucially, several organic chemicals have been produced at laboratory scale in promising yields that have potential use in bioplastic manufacture. Initial scale-up trials on several of these target chemicals have demonstrated the potential for them to be produced at industrial scale, suggesting the commercial feasibility of using lignin-derived chemicals as an alternative for their petrochemical counterparts. We have also transformed these chemicals into a material that shows promising properties for use as an advanced bioplastic. The next phase of the project will examine how the yields of these organic chemicals can be increased using different bacteria and explore options for further scale-up of this technology. The first commercial target is to use the lignin-derived chemicals to replace the oil-derived equivalents currently used to convey strength and flexibility in some of our products, further reducing cost and enhancing sustainability.
31 Jul '14
Background info on Durapipe
Durapipe is one of 97 companies in the international Aliaxis group. After successful field trials in the market place, Biome's portable induction welding equipment will have worldwide sales potential to fluid handling companies within the group and pipe installers. Coupled with transforming cheap lignin into a thermoplastic means that bioplastics will become cheaper than oil-based plastics. The future for BIOM is starting to look very rosy indeed.
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