Eco Investor March 2016

Pre-Revenue Securities

US Project for Leaf Resources

Leaf Resources is to build a Glycell biorefinery in the US in a joint venture with US biorefinery company ZeaChem Inc.

The two companies are also strengthening their links with Leaf investing $550,000 from current cash to increase its equity stake in ZeaChem to 13 per cent. It has the potential to go to 45 per cent.

Leaf said the partnership gives it access to an attractive suite of processes for the production of renewable chemicals that can be materially enhanced through the Glycell process. Leaf's Glycell process can break down plant biomass efficiently while ZeaChem has ways to take the sugars from the Glycell process through to renewable chemicals.

ZeaChem also has engineering experience that reduces the technical risk for the project. Since 2012 it has operated a 10 ton per day demonstration scale biorefinery in Oregon that has provided over 4,600 hours of performance data that can be useful for the project.

The project will initially focus on the US south east where there is a plentiful supply of hardwood and authorities want to stimulate regional employment.

Leaf Resources' managing director Ken Richards said "We have developed a good relationship with ZeaChem over some 15 months now and the opportunity to become a significant shareholder was compelling. We operate in a world market and to have a close partner in the USA will bring Leaf Resources considerable benefits as it seeks to penetrate that market."

Under the joint venture, Leaf Resources and ZeaChem both retain full intellectual property rights for their respective technologies and associated royalties and upfront payments. (ASX: LER)





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