Carbios (PA:ALCRB) is demonstrating a disciplined scale up as it moves from research to industrialisation and commercialisation. Its depolymerisation technology could provide an answer to the key challenges of the plastics economy. Carbios has achieved key technology milestones and set up its first JV earlier than expected. We estimate the company is funded through 2017. Our base case fair value estimate is €26 per share.
Regulation and demand support plastics technology
Carbios’s biodegradation, biorecycling and bioproduction technology could provide disruptive solutions to the plastic economy. The company is developing processes for enzyme-based de-polymerisation of plastics for absorption into nature or re-polymerisation for renewed use. This could enable a circular economy of plastics. Tightening regulation combined with structural growth of plastics consumption support the company’s market prospects, particularly its key end markets: bags, bottles, agricultural films and rigid packaging.
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