Nanollose has advanced its largest pilot production of Nullarbor™ fibre, integrating a refined microbial cellulose process that promises easier adoption by textile manufacturers. The company also bolstered its intellectual property portfolio and secured additional funding post-quarter.
- Fourth pilot production spin of Nullarbor™ fibre underway with upgraded microbial cellulose
- Largest batch to date expected at ~500kg, incorporating improved washing and treatment
- Process innovation enables direct integration into existing lyocell production lines
- Strengthened global intellectual property with new patents and filings
- Post-quarter funding of $53,210 received via option exercises to support development
Scaling Up Production
Nanollose Limited (ASX, NC6) has marked a significant step forward in its journey to commercialise sustainable biomaterials with the advancement of its fourth pilot production spin of Nullarbor™ fibre. This latest batch, expected to yield approximately 500 kilograms, is the largest the company has produced to date and reflects a maturing technology ready to meet industrial demands.
The fibre is a blend of 30% microbial cellulose and 70% FSC-certified wood pulp, designed to be forest-friendly and eco-conscious. The microbial cellulose feedstock, produced by Nanollose’s long-term partner Hainan Guangyu Biotechnology, was shipped to Birla Cellulose in India, where it is undergoing testing and fibre spinning preparations.
Process Innovation and Industry Integration
Crucially, this production run incorporates an optimised washing and treatment process developed collaboratively with Hainan Guangyu Biotechnology. This refinement removes the need for additional pre-processing steps, allowing the microbial cellulose to be fed directly into existing lyocell production lines. Such a breakthrough reduces barriers for industry adoption, enhancing the scalability and commercial appeal of Nanollose’s technology.
CEO Andrew Moullin emphasised the importance of this milestone, noting that the company is transitioning from incremental pilot validation to focusing on scalability and cost reduction. The ability to integrate seamlessly with established manufacturing infrastructure is a key factor in unlocking broader market acceptance.
Intellectual Property Strengthening
Alongside production advances, Nanollose has fortified its intellectual property portfolio. The company announced new patent grants in Japan, Canada, and South Korea, and filed national phase patents in 12 jurisdictions for its Biollose™ dewatering technology. With 14 granted patents and 8 registered trademarks worldwide, Nanollose is building a robust foundation to protect its innovations and support future licensing opportunities.
Financial Position and Outlook
Financially, Nanollose demonstrated prudent cash management during the quarter, ending with a cash balance of $272,000. Post-quarter, the company received an additional $53,210 from the exercise of options, bolstering working capital for ongoing development and partner engagement. The company anticipates further option exercises could raise up to $1.5 million, providing a runway to advance its commercial scale ambitions.
Looking ahead, Nanollose is conducting a strategic review of its product opportunities, assessing market dynamics and production economics to prioritise pathways that maximise shareholder value. The results from the fourth pilot spin are eagerly awaited and expected to shape the company’s development and scale-up strategy throughout 2026.
Bottom Line?
Nanollose’s latest pilot production and IP gains set the stage for critical commercial decisions as it pushes toward scalable, cost-effective biomaterial manufacturing.
Questions in the middle?
- Will the fourth pilot spin meet performance and cost targets to justify commercial scale-up?
- How quickly can Nanollose convert its strengthened IP portfolio into licensing or partnership revenue?
- What are the risks if anticipated option exercises fall short of funding needs?