US public policy initiatives, major brand demand-pull, and special interest groups are driving an exponential shift to cellulosic-based bio-chemicals. Pulp mills world-wide are moving into this market space given their production and feedstock economics. Cosmo has attracted significant attention from companies at the forefront of this shift sourcing cellulosic bio-chemical processors.
Cosmo is well positioned to extract and sell cellulosic sugars and other bio-chemicals processed from the mill’s red liquor stream into an established commodity market. The C5/C6 sugars could be further processed into bio-chemicals in the fastest growing segment – the $1b. bio-plastics market with current CAGR of 19-22%.
Processing cellulosic bio-chemicals would not be invasive to pulp mill operations or strategic grade direction. Ancillary benefits to the mill would be a net reduction in thermal energy demand, significantly less effluent to be treated along with potential maintenance and chemical cost savings.
The Cosmo bio-refinery business model is cost competitive because existing mill assets and red liquor residual streams provide a substantial piece of bio-refinery operating platform and feedstock. Plentiful biomass with chain-of-custody certification, and a stable water supply round out the economics.
Cosmo has completed lab bench testing, market analysis and initial processing costs. We are now proceeding to commercial-level pilot testing and are aiming at commercial sales in early 2015.