Cologne-based BluCon Biotech GmbH and Korean LG Chem Ltd. have entered into an investment agreement, to scale up and commercialize BluCon Biotech’s novel technology for converting lignocellulosic non-food raw materials into high-purity lactic acid, a precursor for the bio-based and biodegradable plastic PLA (poly lactic acid).

BluCon Biotech’s technology is set to transform the global plastics market. The direct fermentation of ligno-cellulosic feedstock to lactic acid allows the production of the bioplastic PLA and is price-competitive with fossil-based plastics. In the environment, lignocellulose is slow and difficult to degrade. In the laboratory, BluCon Biotech’s in-house mix of microorganisms and enzymes converts lignocellulose rapidly.

Together, BluCon Biotech GmbH and LG Chem Ltd. will now work on a novel process to convert lignocellulosic non-food raw materials into high-purity lactic acid, a precursor for the bio-based and biodegradable plastic PLA.

BluCon co-founder and CEO Dr. Albrecht Läufer comments: “BluCon's IP-protected technology is highly efficient and unique as it is the first in the world to directly ferment ligno-cellulosic biomass to lactic acid in one bioreactor. This will lead to a commercially viable process that can produce lactic acid at a lower cost than traditional methods, making bio-based plastics competitive with fossil-based plastics.”

By using non-food feedstocks derived from agricultural residues and waste streams e.g. from the pulp and paper industry, BluCon not only avoids competition of chemical production with the food chain, it also helps to protect the environment by reducing pollution from incineration of straw or bagasse and avoiding CO₂ emissions.

BluCon has already received funding from the German Ministry of Economics and Climate Protection to scale up its proprietary fermentation technology. The company is currently performing pilot runs.

BluCon plans to adapt its process for the conversion of feedstocks, such as wheat straw into bioplastics, to other feedstocks such as corn stover, bagasse, cotton stalks, starch and algae. BluCon will serve as a technology supplier. It will license its technologies to investors, the chemical and biotech industry and to large feedstock and bioplastic producers. This will generate revenue through milestone, royalty and service fees. The factories will likely be located in areas with ample feedstock supplies. This can con-tribute to bring development to remote rural areas worldwide.

Additionally, the technology platform of BluCon has the flexibility to be used to produce other bio-based products as well, such as ethanol or succinic acid.