From the Sector

• At end 2022, Carbios has 336 titles worldwide divided into 53 patent families for its innovation in enzymatic recycling of PET plastics and fibers, and its PLA biodegradation technology
• Carbios’ team of Intellectual Property experts is dedicated to protecting its innovations

 
Carbios has doubled its number of issued patents since the last review published at the end of 2020. Carbios (and its subsidiary Carbiolice) currently holds 336 titles worldwide divided into 53 patent families.  In 2022, several titles protecting the proprietary PET-degrading enzymes were granted in countries of interest such as the United States and also in Asian countries including Indonesia, South Korea, China, Japan and India.  Carbios has also obtained grants within its patent families protecting the biodegradable plastics production process, notably the masterbatch containing the enzyme or its production process.
 
Carbios is expanding its intellectual property portfolio in regions and countries where there is strong demand for its disruptive technologies, notably :

• in Europe: 40 European titles, which could be granted in the 39 member states of the European Patent Organization
• in North America: 41 titles in the United States and 23 in Canada
• in Asia: 152 titles, including 37 in China, 27 in Japan and 24 in India

Carbios also has 14 patent applications that may be extended to other countries or regions of the world in the coming years.

“Over the past two years, we have mainly focused on strengthening the protection of our PET biorecycling process and its proprietary enzymes,” commented Lise LUCCHESI, Director of Intellectual Property at Carbios. “For the coming years, we will continue to consolidate the protection of this process, and that of our PLA biodegradation process, by filing new patent applications. We will also actively follow up on our filed patent applications in order to obtain granted patents.”
 
“Since the beginning of Carbios, the R&D and Intellectual Property departments have worked hand in hand to ensure maximum protection of our enzymes and processes,” commented Alain Marty, Chief Scientific Officer at Carbios.  “These continued efforts to obtain extensive international protection are crucial to safeguard our innovations and ensure the industrial deployment of our technologies.”

Carbios has strengthened its leadership team with the appointment of Martine Brisset as Senior Vice President from 1 January 2023. Martine will manage the Biodegradation Division and supervise the Human Resources, Legal, Regulatory, Project Management, Quality Health and Safety departments. Martine Brisset joins the Group’s Executive Committee, as does Delphine Denoizé, who remains Innovation Programs Funding, Regulation and LCA Director with an expanding team.

Martine Brisset has over 30 years of General Management experience in international groups within the plastic and paper packaging industry, most notably at Amcor, Huhtamaki, Linpac and Klockner Pentaplast.  Since 2021, she has held the position of General Manager of Carbiolice in order to integrate this high-potential subsidiary dedicated to biodegradation within the Carbios Group. In her new position as Senior Vice President of Carbios, her main mission will be to successfully deploy the biodegradation technology, facilitate the international expansion of Carbios’ activities, organise the recruitment and training of the Group’s employees. With numerous recruitments planned throughout the company in 2023, building Carbios’ attractivity will be a strategic topic.

After several years working in innovation within the agricultural industry, Delphine Denoizé joined the Carbios in 2016 and was one of its first twenty employees. Initially in charge of Innovation Funding and Regulation, then Project Management for PET biorecycling, she now oversees all the Group’s projects. Her responsibilities include French and European public funding for innovation, regulatory compliance of processes and products around the world, and assessment of their environmental impact through specific tools such as Life Cycle Assessment.

• Scientific researchers from 10 countries, including North America, UK, Japan and Germany
• Bertrand Piccard, Solar Impulse Foundation, as Keynote Speaker
• Speakers from strategic partnerships: L’Oréal, Salomon, and McKinsey

Carbios hosted the first PET Biorecycling Summit from 7 to 8 December 2022 in Paris. The event attracted over 100 international participants from the scientific, academic, and industrial worlds to exchange on the advances in the field of biological recycling, and how to bring these innovations for a circular economy to market.

The two-day conference gathered scientists from various academic institutions to share their latest research on PET enzymatic depolymerization.  Bertrand Piccard, Initiator and Chairman of the Solar Impulse Foundation^[1], joined as the Keynote Speaker for the last session focused on PET circularity, and praised Carbios’ contribution to reducing plastic pollution. The Summit concluded with a visit of Carbios’ demonstration plant in Clermont-Ferrand. The demonstration plant was inaugurated in September 2021 and brings Carbios’ technology one step closer to industrialization. Following the demonstration plant’s success, Carbios is on track to build and operate the world’s first industrial-scale enzymatic PET recycling plant (with a processing capacity of 50.000 tons of PET waste per year) in France (Longlaville) by 2025^[2], and to start licensing its technology throughout the world.

^[1] To address sustainability challenges while enabling economic growth, Bertrand Piccard and the Solar Impulse Foundation have identified 1000+ clean and profitable solutions. More details available on the official website.

^[2] Cf. Press release dated 23 February 2022.

• Carbios’ biorecycling and biodegradation technologies internationally recognized by consumers as promising answers to their top environmental concerns
• Carbios’ innovations considered one of the best for solving recycling effectively and achieving a real plastic circularity
• Consumer research including qualitative and quantitative fields was conducted between March and August 2022. The research institute, Strategic Research, conducted 6000 interviews in Europe and USA

Carbios’ biorecycling and biodegradation technologies acclaimed by consumers
During the first research field study, respondents were exposed to Carbios’ biorecycling process; a new enzyme-based biotechnology that enables biological recycling of all types of PET plastic waste (including bottles, packaging and textiles), and pushes the boundaries of recycling in terms of the number of cycles.

The research results demonstrated that European and US respondents find Carbios’ biorecycling technology more unique and innovative than traditional PET recycling (i.e. thermo-mechanical recycling), as well as more relevant in its ability to address their concerns and challenges regarding recycling.

In the second research study, conducted in the US, respondents were also exposed to Carbios’ biodegradation technology: an innovative enzymatic solution by which an enzyme is incorporated into plastics during the production process of bio-sourced PLA plastics (corn, sugar cane). This approach makes the material made from plants 100% compostable at ambient temperatures and degradable like plants with the built-in enzyme biologically breaking the bioplastic down in less than eight weeks without microplastics or toxic residues; creating a fully organic circularity.

Similarly to Carbios’ biorecycling technology, Carbios’ PLA biodegradation innovation caught US respondents’ attention with 64% overall liking it. Additionally, 93% of the respondents sampled described the concept as innovative, unique, easy to understand (49%), and believable (43%). Up to 82% of the most environmentally engaged respondents declared they would definitely buy more products made with Carbios’ fully circular biodegradable bioplastic.

Consumers: No other choice but to make plastic fully circular
The research says 99% of the respondents consider it important to protect the environment, while plastic pollution is now ranked the third most-concerning environmental issues after climate change and ocean pollution.

This awareness brings most of these consumers to be environmentally active when it comes to purchasing goods and sorting. For the US respondents, eco-friendly packaging comes in the fourth place in terms of purchase drivers for packaged goods and 65% of them declare sorting plastic from general waste on a regular basis, which makes plastic the most sorted type of waste.

Nevertheless, for a vast majority of the respondents across geographies, even if they would like to reduce their plastic consumption most of the time there is no suitable alternative that is as convenient, light, and cost-efficient as plastics. Hence in an ideal world, consumers would like all plastic waste in landfills and oceans to be collected, cleaned, reused and recycled.

Carbios announced the appointment of Pascal Bricout as Chief Strategy and Financial Officer and a member of the Company’s Executive Committee.

Mr. Bricout will oversee the management and organization of Carbios’ Finance division. He will also steer the Group’s Strategy, investor relations and the launch of the company’s Corporate Social Responsibility policy. He joins the company with over 30 years’ experience in finance, strategy and international mergers and acquisitions.
 
Prior to joining Carbios, Mr. Bricout served as Chief Financial Officer for Michelin in Asia, which is a major area of growth and development for the company. Over the past 10 years, he has focused primarily on major strategic mergers and acquisitions.

Mr. Bricout holds a Master Degree in Finance from Université Paris-Dauphine. He began his career at PwC, as a manager in the International Transactions Services teams in Paris and London.

Mr. Bricout, Carbios’ Chief Strategy & Financial Officer noted: “I am thrilled to be joining Carbios and proud to take part in this concrete, meaningful advance toward circular economy. Having developed unparalleled breakthrough technologies in plastic and textile biodegradation and biorecycling, Carbios now needs to execute a successful industrial and commercial phase. This is crucial for companies using PET to achieve, from 2025, their sustainable development goals. Within this dynamic context, Carbios and its subsidiary, Carbiolice, are poised to become global leaders in the development and industrialization of innovative bioprocesses to revolutionize the life cycles of plastics and textiles.”

• An innovative European project to process and recycle plastic textile waste
• A partnership to reach the objectives set by the European Union in reducing CO2 emissions by 2030
• A unique consortium rallying 16 public and private European organizations working together for more circular economy

Carbios joined WhiteCycle, a project coordinated by Michelin, which was launched in July 2022. Its main goal is to develop a circular solution to convert complex^[1] waste containing textile made of plastic into products with high added value. Co-funded by Horizon Europe, the European Union’s research and innovation program, this unprecedented public/private European partnership includes 16 organizations and will run for four years.
 
WhiteCycle envisions that by 2030 the uptake and deployment of its circular solution will lead to the annual recycling of more than 2 million tons of the third most widely used plastic in the world, PET^[2]. This project should prevent landfilling or incineration of more than 1.8 million tons of that plastic each year. Also, it should enable reduction of CO2 emissions by around 2 million tons.
 
Complex waste containing textile (PET) from end-of-life tyres, hoses and multilayer clothes are currently difficult to recycle, but could soon become recyclable thanks to the project outcomes. Raw material from PET plastic waste could go back into creation of high-performance products, through a circular and viable value chain.
 
Public and private European organizations are combining their scientific and industrial expertises:

• industrial partners (Michelin, Mandals, KORDSA);
• cross-sector partnership (Inditex)
• waste management companies (Synergies TLC, ESTATO);
• intelligent monitoring systems for sorting (IRIS);
• biological recycling SME (Carbios);
• product life cycle analysis company (IPOINT);
• university, expert in FAIR data management (HVL);
• universities, research and technology organizations (PPRIME – Université de Poitiers/CNRS, DITF, IFTH, ERASME);
• industry cluster (Axelera);
• project management consulting company (Dynergie).

 
The consortium will develop new processes required throughout the industrial value chain:

• Innovative sorting technologies, to enable significant increase of the PET plastic content of complex waste streams in order to better process them;
• A pre-treatment for recuperated PET plastic content, followed by a breakthrough recycling enzyme-based process to decompose it into pure monomers in a sustainable way;
• Repolymerization of the recycled monomers into like new plastic;
• Fabrication and quality verification of the new products made of recycled plastic materials

 
WhiteCycle has a global budget of nearly 9.6 million euros and receives European funding in the amount of nearly 7.1 million euros. The consortium’s partners are based in five countries (France, Spain, Germany, Norway and Turkey). Coordinated by Michelin, it has an effective governance system involving a steering committee, an advisory board and a technical support committee.

^[1] Complex waste: multi materials waste (Rubber goods composites and multi-layer textile)
^[2] PET: Polyethylene terephthalate

Carbios has signed an agreement with On, Patagonia, PUMA, and Salomon, to develop solutions that will enhance the recyclability and circularity of their products.
 
An important element of the two-year deal will be to speed up the introduction of Carbios’ biorecycling technology, which constitutes a breakthrough for the textile industry. Carbios and the four companies will also research how products can be recycled, develop solutions to take-back worn polyester items, including sorting and dismantling technologies, and gather data on fiber-to-fiber recycling as well as circularity models.
 
The challenge the four brands share, is that their ambitious sustainable development goals can only partially be met by conventional recycling technologies which mostly target bottle-to-fiber recycling. Future regulations will require more circularity in packaging and textile. Yet the market consensus is that there will soon be a shortage of PET bottles, as they will be used for circular production methods in the Food & Beverage Industry.   
 
Carbios’ innovative process constitutes a technological breakthrough for the recycling of polyester (PET) fibers, which are widely used in apparel, footwear and sportswear, on their own or together with other fibers. PET polyester is the most important fiber for the textile industry with 52 MT produced, even surpassing cotton at 23MT. The biorecycling process uses an enzyme capable of selectively extracting the polyester, recovering it to recreate a virgin fiber. This revolutionary technology makes it possible to recover the PET polyester present in all textile waste that cannot be recycled using traditional technologies.
 
PET plastics and fibers are used to make everyday consumer goods such as bottles, packaging and textiles. Today, most PET is produced from fossil resources, then used and discarded according to a wasteful linear model. By creating a circular economy from used plastics and fibers, Carbios’ biorecycling technology offers a sustainable and more responsible solution.

• 2021 Annual Results: First IFRS consolidated statements integrating the subsidiary Carbiolice
• Plan to build a first industrial facility with a strong financial support from the French Government and the Grand-Est Region: site selected in France in partnership with Indorama Ventures, world leader in the production recycled PET
• Successful commissioning of a demonstration facility in September 2021 and confirmation of the validity of the scale-up of Carbios’ enzymatic recycling technology
• Takeover of Carbiolice and full integration in the consolidated IFRS statements since June 4th, 2021
• Appointment of Philippe Pouletty as Chairman of the Board of Directors on April 1st, 2022
• Appointment of Emmanuel Ladent as CEO of the Company on December 1st, 2021
• Strengthening of Carbios’ financial structure: capital increase of €114 million with French and International investors and €30 million loan from the European Investment Bank (EIB)
• Group’s cash position of €105 million as of December 31, 2021, which does not include the €30 million EIB loan due to be drawn down in the first half of 2022

Carbios, a pioneer in the development of enzymatic solutions dedicated to the end-of-life of plastic, announced its operating and financial results for the year 2021. The financial statements as of December 31, 2021, were approved by the Company’s Board of Directors at their meeting on March 31, 2022.

“In 2021, Carbios achieved several technical and industrial milestones testifying of the soundness and successful execution of our strategy. The excellent results obtained from our demonstration plant confirms the industrial scale-up potential of our biological technology for the recycling of PET plastics and fibers. Together with our Consortium members, we also produced the world’s first food-grade PET sample bottles produced entirely from enzymatically recycled plastics; a world first. In addition, we have strengthened our financial structure by raising a landmark €114 million in May 2021 and we have taken full control of Carbiolice in June. In line with our objectives and with a strong financial support from the French Government and the Grand-Est Region, we will soon enable France to host the world’s first industrial facility dedicated to the biological recycling of plastics. Carbios’ enzymatic process will make it possible to recycle more than 50,000 tons of PET plastic waste per year,” comments Emmanuel Ladent, CEO of Carbios. “Our priority for 2022 is to finalize the terms of our partnership with Indorama Ventures, which will host the world’s first industrial facility operating our biological recycling process at its French production site in Longlaville. This year will also be about optimizing our commercial strategy, while continuing our innovation efforts on the end-of-life of other polymers.”

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• Carbios has succeeded in producing a 100% enzymatically recycled white PET fiber from colored textile waste
• At the same time, the company has produced the first 100% recycled PET bottles, that have successfully passed the food contact validation tests, from the same textile waste.
• Carbios received €827,200 for the validation of this final technical stage of the project co-funded by ADEME

Carbios announced the validation of the 3^rd and final technical step of the CE-PET research project, co-funded by ADEME3 (France’s Environment and Energy Management Agency), for which Carbios is the lead partner alongside its academic partner TWB. This achievement confirms, once again, the full potential and breadth of Carbios’ enzymatic recycling process, C-ZYME™. This breakthrough innovation makes it possible to produce a wide variety of products of equivalent quality to those of petro-sourced origin from any PET waste, including textiles.
 
The first white PET fiber recycled enzymatically from colored textile waste
Worldwide, around 90 million tons of PET are produced each year, more than 2/3 of which are used to manufacture fibers. However, only 13% of textile waste is currently recycled, mainly for downcycling, i.e. for lower quality applications (such as padding, insulators or rags). By successfully manufacturing at pilot scale a white PET fiber that is 100% enzymatically recycled from colored textile waste, Carbios is paving the way for the circular economy in the textile industry.  C-ZYME™ is now on the doorstep of industrialization and will soon enable the biggest brands to move closer to their sustainability goals.
 
Emmanuel Ladent, Chief Executive Officer of Carbios: « Thanks to our breakthrough process, it will soon be possible to manufacture, on a large scale, t-shirts or bottles using polyester textile waste as raw material. This is a major breakthrough that gives value to waste that currently has little or no value. It is a concrete solution that opens up a global market of 60 million tons per year of potential raw materials and will help to reduce the use of fossil resources. »
 
Separate collection of textile waste soon to be mandatory in Europe
From 1 January 2025 the separate collection of textile waste, which is already in place in some countries, will be mandatory for all EU Member States (European Directive 2018/851 on waste).  Carbios’ process will enable this waste to be sustainably recovered and included in a true circular economy model.
 
These technological validations were carried out as part of the CE-PET research project, co-funded by ADEME3. In particular, the project aimed to develop Carbios’ enzymatic PET recycling process on textile waste. The C-ZYME™ technology is complementary to thermomechanical recycling and will make it possible to process plastic and textile waste deposits that are currently not or poorly recovered. For the validation of this stage of the project, Carbios received €827,200 (€206,800 in grants and €620,400 in repayable advances).