We convert low-value sawdust into high-value bio-based chemicals with our patented ultrasonic process!
Business overview
Location | Southampton, United Kingdom |
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Social media | |
Website | sonichem.com |
Sectors | Energy Non-Digital B2B |
Company number | 06450324 |
Incorporation date | 11 Dec 2007 |
Investment summary
Business highlights
- Advanced pilot plant and lab already operational
- At scale each £1 of biomass yields ~£8 of chemicals
- Consortium leader of new £600K Innovate UK grant
- Tapping into a multibillion dollar chemical market
Key features
Idea
Introduction
Climate and environmental pressures require the use of sustainable chemicals which excludes fossil-derived chemicals (e.g. from coal, gas and oil) and those needing land that can grow food crops (e.g. from maize and sugar).
Only 55% of a log entering a sawmill becomes useable construction timber. The other 45% is woodchips and sawdust, and we use the last of these as feedstock in our process, breaking it down into the three main constituent natural bio-based chemicals: sugars, cellulose and lignin.
We have developed a scalable and patented environmentally friendly process, turning each £1 of sawdust into almost £8 of bio-based sustainable chemicals.
The high growth $17BN bio-based chemicals market is driven by demand for sustainable alternatives to petrochemicals in plastics, cosmetics, and more. Sonichem is at the heart of this transformation, driving the green wave!
Substantial accomplishments to date
2012: Successful proof of concept at lab scale by Imperial College London of ultrasound-assisted biomass fractionation.
2015: EU BioSonic Project - Our ultrasonic fractionation concept was the core innovation for a grant award of €2.5M for a consortium of forestry and industry partners, to design and build what became our first generation pilot plant.
2017-2020: First successful pilot plant trials, led to a series of technological refinements and optimisations. Patents granted in 10 markets.
2021: design of a new scaleable ultrasonic reactor. Winner of the Royal Society of Chemistry’s Best Enabling Technology award.
2022: Seed round of £1.4 million, facilitated the expansion of our team and pilot operations, and a 4th patent is filed. We won R&D support through two iCAST awards and a £100k project co-funded by the IBioIC and the University of Glasgow IAA fund, exploring the versatility of our lignin in sustainable materials.
2023: Leading a consortium awarded an Innovate UK grant of £593,000, with a direct benefit of £260,000 to Sonichem, to develop lignin for automotive interior materials with partners Polestar, Scott Bader and SHD Composites. Discussions are underway with a leading UK sawmill partner to host a first commercial biorefinery and ensure sawdust supply. Futamura (Cellophane) is trialling Sonichem bio-based chemicals for eco-friendly films and has provided a letter of support for a potential purchase of 3,000 Tonnes/yr.
Monetisation strategy
Sonichem will evolve from R&D to profitability with a strategic three-phase plan.
Phase 1: Produce commercial samples, converting low-cost sawdust into higher-value eco-friendly bio-based chemicals, building a broad spectrum of partner industries such as bioplastics, automotive, cosmetics, and more.
Phase 2: Our first commercial biorefinery plant will begin operations, generating revenue while showcasing our scalable technology to future licensees and plant operators. We aim to demonstrate that strong commercial returns are possible whilst offering competitive pricing for our triple-product output.
Phase 3: We expect to expand revenue by licensing agreements, particularly targeting international markets and diversifying into other biomass feedstocks such as waste from sugarcane and palm oil production.
Sonichem's strategy is not just to create a market presence but to lead the way in biorefinery technology, providing sustainable, economical solutions on a global scale.
Use of proceeds
Sonichem is strategically deploying raised funds to progres our monetisation strategy through the following key initiatives:
Operate & Enhance our Pilot Plant: Upgrading the facility to mirror key aspects of a commercial plant, demonstrating our technology can scale whilst producing larger samples.
Finalise a Commercial Plant Design: Whilst refining our current plant's processes, we're also developing the design for a large-scale production facility.
Secure Location & Feedstock: Negotiate and agree the location and sawdust supply for our first (15,000Tonne/Yr) commercial-scale plant, together with government investment support.
Expand existing industry partnerships and build demand, with ongoing discussions aimed at securing commitments for our sustainable bio-based chemicals.
Innovating and Protecting Our IP: Our ongoing research and collaborations are key to developing new technologies, which we're committed to protecting through intellectual property rights.
Key Information
Management Team interest
The CEO, Adrian Black, was the founder of NorthRow Ltd, a RegTech software and service provider, and still holds shares (< 10%) in the business. He no longer has any formal or active role in the business and there is no relationship or competition between Sonichem and NorthRow. Adrian is also a director of Cloudbase Ventures Ltd, a personal services company through which he has performed occasional consultancy, including his initial engagement with Sonichem. Adrian is bound by non-compete clauses with Sonichem and is not currently engaged in any work for Cloudbase Ventures.
The Commercial Director, Miranda Lindsay-Fynn, is part-time, with a contractual commitment to work at least 25 hours per week. She is also a director of The Mount 76 Bedford Gardens Ltd, which is the head lease company of her home apartment building. As an active investor, she has many other minority shareholdings in both private and publicly listed companies. None of them compete or provide services to or have a relationship with Sonichem.
Rebrand
The company has recently changed its name from Bio-Sep Limited to Sonichem Technologies Ltd. Some patents are still held under the old name.
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