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BioProtect Paper: Off-line machine for advanced bio-coating paper

Periodic Reporting for period 1 - BioPP (BioProtect Paper: Off-line machine for advanced bio-coating paper)

Reporting period: 2019-11-01 to 2020-02-29

The BioPP Feasibility Study (FS) places itself in the middle of the development process which goes from the conceptual idea of BioProtect Paper (BioPP) as coating solution for paper-based packaging to its market launch and commercialization into the food packaging industry. Through the FS we have carried out an in-depth analysis of the BioPP project from a technological, commercial and financial point of view, to select the most appropriate alternatives for its technical development and its profitable market introduction and uptake.
Main objectives
1) analyzing the Technical Feasibility of the BioPP process to reach full market readiness upon completion of the EIC Accelerator project. • Evaluation of technical milestones to reaching full BioPP market readiness. • Technical design and functional design optimization and scaling up (from 1:10 to 1:1 prototype) through the V-model project handling method. • User Requirement Specification definition to specify the end-user specific needs. URS will lead towards a Functional and Technical Design before starting with the machine manufacturing. • Implementation of factory acceptance tests and site acceptance tests to verify the Technical Design and the Functional Design. • Definition of production, quality and installation protocols with our development partners and customers to prepare for Stage A.
2) studying the Commercial Feasibility through • the quantification of the potential markets, end-users and partners in selected target areas for the commercialization. To achieve a successful market uptake • we will also elaborate detailed commercialization and dissemination strategies to promote market awareness of BioPP globally, • define necessary steps towards protecting our brand and IP and ensuring our Freedom to operate (FTO) in target markets, • and monitor the regulatory environment.
3) analyzing the Financial Feasibility of the project, with a 5-year cost and revenue forecast, and evaluating budgetary requirements for effectively reaching the market with BioPP by Q4-2022. Defining realistic long-term sales targets in line with scalability, quantifying profitability and ROI.
We have developed an exhaustive risk analysis, including technical, commercial and financial risks which might hamper the project development, including possible mitigation measures for the EIC Accelerator project
The FS has showed that the BioPP project has the technical, commercial and financial viability to be implemented.
Technical Feasibility: we have identified and studied the technical and functional design optimizations we will need to implement throughout the EIC Accelerator project (WP1) to scale-up the current BioPP prototype (from prototype 1:10 to prototype 1:1). Through the User Requirement Specification (URS) Document we have demonstrated that BioPP’s main technical features (Unique Selling Points) will not only answer the customer needs, but also will generate clear economic advantages and environmental benefits in the whole paper packaging value chain. We have also outlined the factory and site acceptance tests to be implemented by ORLOGA (internal testing) to verify the technical and functional designs of our final BioPP prototype 1:1; and example of production, quality and installation protocols which will be followed to implement the large scale piloting of our prototype 1:1 with each test partner (potential customers) (WP2).
Commercial Feasibility: we have studied the paper industry, the coated paper market and packaging market, and carried out an in-depth analysis of global key players. We have demonstrated an increasing customer demand for recyclable, and water resistant paper coating solutions in the growing food packaging market and showed that BioPP, with its excellent environmental performance, is the perfect solution answering to the unmet market need. We performed a comparison from the commercial point of view of the main alternative coating solutions currently existing in the market (competitor analysis). Most of the global players we have analyzed so far, have been working on the development and adoption of new products to improve their market shares, especially in the field of bio coating materials, so solutions such as BioPP will have a great attraction for these paper manufacturers and paper processors. We have also identified some European companies which will be the best candidates for BioPP pilot tests (WP2, 15 on-site final validations). We have outlined our business model, Commercialization Strategy and strategy for local suppliers and distributor selection in the target markets. Stage A, offering our innovative hydrophobization service and processing paper jumbo rolls for various industrial uses (€0.10/m2 of paper processed). Stage B, Y3 of commercialization, start selling/licensing our BioPP off-line machines as paper hydrophobization solutions tailored to customer needs (€ 3.5 M/machine). Through our Freedom to Operate (FTO) analysis we have demonstrated that our BioPP process is not infringing any existing patent. We have studied the regulatory framework relevant for our innovation introduction into the market and plan for disseminating our project results.
Financial Feasibility: we have carried out a 5 year sales and revenues forecasts taking into consideration a market launch in October 2022, immediately after the completion of the BioPP EIC Accelerator project. Our company’s ambition is to reach a positive ROI during the second year and to cover the initial investment of € 4 M. Five years after entering the market, we forecast to have sold about 34 BioPP offline machines, with cumulative profits of more than € 50 M, and creation of more than 25 new jobs.
Based on the conclusions of the FS, we have also outlined the main activities to be implemented during the BioPP EIC Accelerator project (24 months: Q4 2020– Q3 2022). We aim to optimize and scale up the current BioPP design (WP1) (prototype 1:1: reaching TRL8) and validate it through the successful implementation of 15 on-site pilot tests (TRL9) (WP2). In parallel, commercial validation activities (WP3; WP4) will be established to enable the maturation of our business plan, based on the industrialization of the BioPP process. These will include: stakeholder and final supply chain analysis; pricing strategy; dissemination
In the packaging industry, the application of petroleum-based derivatives (i.e. polyethylene, waxes, fluor-derivatives) to improve the paper surface hydrophobicity has become disfavoured due to poor recyclability limitations, and environmental concerns on generated not biodegradable waste.
100% waterproof (superhydrophobic), 100% recyclable, biodegradable, aligned with sustainable directives on waste recycling, BioPP hydrophobization process is the perfect solution answering to the increasing demand for recyclable, and water resistant paper coating treatments in the growing food packaging market
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