5 Year, £35 Million Pharmafilter Partnership With Cellulac To Deliver 2nd Generation Bioplastics Supply Chain Solution For Hospitals

Dundalk, Ireland and Amsterdam, The Netherlands, 30th March 2015: Cellulac, the industrial biochemicals company, and Pharmafilter, a provider of integrated waste management infrastructure for dealing with complex waste, are delighted to announce a commercial partnership to deliver the first vertically integrated, supply chain solution for energy and wastewater recovery in hospitals.

cellulac’s environmentally-benign, low cost production bioplastic process uses 2nd generation diary and agriculture feedstocks. Through this commercial partnership, cellulac will produce up to 90% of the core ingredients for disposable single use items and personal hygiene products compatible with the Pharmafilter recovery system in hospitals. This partnership is a template for collaboration, development and implementation of end-to-end solutions for advances in technology for the bio-economy.

Gerard Brandon, CEO of Cellulac, commented;

“The Pharmafilter alliance with Cellulac is a classic definition of the bio-economy. Producing, at volume, our low-cost, thermostable and high strength bioplastics for a technology partner would be a significant development alone. However, it becomes transformative when combined with Pharmafilter’s hospital recovery system which is capable of recapturing energy and cleaning wastewater in a safe and environmentally friendly way. Our partnership creates a low cost, vertically integrated supply chain solution that has a low carbon footprint and is environmentally friendly, positioning both cellulac and Pharmafilter as lynchpins in a circular bio-based economy.”

Eduardo Van Den Berg Founder and CEO of Pharmafilter BV.

“Our innovative solution solves waste, wastewater and safety problem for hospitals by removing complex waste, sewage and wastewater streams emanating from hospitals. Central to this solution is the requirement to secure a sustainable low cost and low carbon, high energy, end-of-life solution for single use bioplastics. cellulac’s innovative production and operational cost base opens the door for Pharmafilter to meet those targets and we look forward to rolling out the products over the next few years.”

Notes to Notes to Editor:

Cellulac (http://cellulac.co.uk) have acquired chemical engineering technologies and combined with bacteria and enzyme expertise that uses a variety of 2nd generation dairy and agricultural feedstocks, in the low-cost bio-production of multiple, well-established specialty chemicals - including those central to the high growth bio-plastics sector.

1. The cellulac bio-production process utilises raw materials that are second generation feedstocks, including lactose whey and lignocellulosic materials (eg straw, spent brewers’ grains, ethanol producers’ distilled dried grains with solubles). These are by products resulting from other commercial or agricultural processes and as such have little intrinsic commercial value, guaranteeing low input costs. By contrast, first generation feedstocks used in alternative bio-production platforms are highly sensitive to commodity price inflationary pressures as a result of their use as basic food crops.

2. The cellulac process significantly reduces the combined cost of energy and enzymes for the conversion of raw feedstocks to fermentable sugars when compared to alternative pre-treatment systems such as steam explosion. This results from the application of the SoniqueFlo™ cavitation technology in the pre-treatment of such feedstocks and the use of cellulac’s proprietary cocktail of enzymes to furnish high yields of both C5 / C6 fermentable sugars for subsequent downstream conversion to biochemicals.

3. The cellulac process removes the majority of the energy costs associated with the downstream processing of fermentation broth to Lactic Acid by the innovative use of supersonic energy and CO2 in SoniqueFloTM to produce ethyl lactate, an industrial organic solvent derived from Lactic Acid. Conventional processing is highly energy intensive and consumes as much as 67% of the overall cost of Lactic Acid production.

Pharmafilter (www.pharmafilter.nl) represents a change in the way we work that positively enhances the work environment, patient safety and care. It is an environmentally friendly way of dealing with the complex waste, sewage and wastewater streams emanating from hospitals that would normally be contaminated with high concentrations of pharmaceuticals, such as antibiotics, painkillers, toxic substances, heart medicines and contrast media. Through urine and faeces, these substances are discharged to the wastewater system and despite excellent biological treatment in wastewater treatment plants, eventually discharged into surface water.

Logistically and historically, waste in hospitals are removed and separated into various categories. This activity requires both significant staffing hours, physical infrastructure and recording of waste types. This process requires the use of sorting rooms, internal, external storage and transporting waste through public corridors and lifts. The core benefits are: The on-site plant produces its own electricity and recovers the water to the quality that can be reused in the hospital. It reduces mixed waste (including hazardous) by 50% of the volume including 90% of organic waste representing another cost benefit.

2. It is a thoroughly integrated waste management system that delivers significant improvement in the handling, removal and treatment of waste streams arising in hospitals, at every user interface. These include solid waste in the form of bioplastic bed pans, urinals, kitchen refuse, general waste and health care risk waste.

3. Pharmafilter system greatly simplifies the methods by which waste is handled and decontaminated and, therefore, reduces overall costs.

Process: Starting inside the hospitals individual shredding units (“Tonto”) are installed in service or utility rooms convenient to areas of waste output.

Steps:

1. All waste generated in the department and ward from healthcare risk waste, food, sharps, materials contaminated with blood, soiled, pharmaceuticals, paper, plastics, biodegradable bedpans and urine collection units are shredded in the Tonto unit.

2. Waste now exits the hospital through waste disposal pipes that are now redirected to the Pharmafilter on-site unit rather than the external sewer.

3. Here the Pharmafilter unit automatically decontaminates and separates all constituents of this mixed waste stream; sewage, organics and water resulting in outputs free of viruses, pathogens harmful bacteria, pharmaceuticals and other trace contaminants.

Cellulac +353 (1) 254 2330
Gerard Brandon gjbrandon@cellulac.co.uk

Pharmafilter +353 (0) 86 827 6649
Peter Kelly p.kelly@pharmafilter.nl

FTI Consulting +44 20 3727 1000 Simon Conway / Mo Noonan

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