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Praj Industries signs MoU with Lygos for co-developing bioplastic products

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Capital Market
Last Updated : Jun 17 2020 | 11:35 AM IST
Praj Industries and Lygos Inc. have signed a Memorandum of Understanding (MOU) to co-develop Lygos's proprietary yeast for the production of lactic acid. As part of this MOU, Lygos will provide its proprietary yeast platform to Praj for jointly developing into various solutions for commercial applications.

Praj has already developed and offers bacterial fermentation technology to produce lactic acid and downstream products from sugary feedstock. Lactic acid is also used in food and beverages, in cleaning agents as well as in the electronic industry. The global lactic acid market size is estimated at around $1 Bln USD (2019).

Lygos will provide its innovative and high-performance technology, LP1 Ultra Yeast Platform and Carbon Sequestration Superhighway, which is well suited to produce acid compounds.

Praj will assemble other segments of technology backed up by its expertise in process development, optimization, design scale-up and will further integrate lactic acid as a source material in to making Bioplastic, called as Polylactic Acid (PLA).

Demand for PLA acid is ~ 200, 000 tons/year, which is expected to increase substantially in the near future. PLA is an appropriate solution to replace single use plastics and reduce the burden on the waste disposal system. Due to its unique characteristics, PLA offers an improved replacement for many applications. Rising consumer awareness with respect to the need for recyclability, green packaging, and sustainability is driving significant demand globally. Unlike conventional plastic, PLA does not take decades to degrade, and as such, reduces adverse environmental impact.

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First Published: Jun 17 2020 | 11:20 AM IST

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