CLAYFUSE

We are working for a zero food waste future ASAP, to achieve so we must extend the shelf-life of food products in a sustainable & healthy way. Clayfuse approaches the issue of non-recyclable food packaging films mostly reserved to the polyethylene family(APC 1996). Particularly Low-density polyethylene(LDPE) representing 70% of used resin for that purpose. More than 60.000 Tm/year of LDPE film for food packaging is produced in Southern Brazil alone. In order to enhance O2 and CO2 barrier properties of these technical polymers, a multilayered film is formulated mostly by intercalating PA (Nylon as middle layer) or using a metallic coating, disabling possible recycling.  We have developed a natural based solution that can be incorporated into PE producing a polymer clay nanocomposite. The final compound is fully recyclable and avoids the need of tie layer (normally EVOH). Moreover, Clayfuse enables traceability using simple field spectroscopy techniques to maximize recyclability

We intend to solve the problem of single use plastics, and the long lasting waste they generate after leaving a linear chain. Specifically, the technology CLAYFUSE attends the issue of low recyclability on food packaging films due to currently applied techniques needed to enhance gas barrier properties. According to Euromonitor and PMMI, the food packaging industry in Latin America may expect a yearly growth of 1.8%. During 2018 in Brazil this segment reached a record value of US$ 18,3billion, increasing 11.9% with respect to 2017. Plastics are the leading material with 41% followed by paper (33%), metallic(17%) and glass(4%). Our technology also contributes to solve the problem of food waste, providing a sustainable technology that extends shelf life of food products during post-harvest/production, storage & transport; stages in which most waste is generated(67%). Over 127 million tonnes of food are wasted each year in Latin America, characterized very distinctively by food groups: root crops & tubers(40%), fruit & vegetables(55%); and other groups are relatively more waste-efficient (FAO, 2016). In terms of the carbon footprint major contributing food groups are Cereals(34%), meats(21%) and vegetables(21%). Previously mentioned food groups leading food waste and carbon footprint are targeted applications of our value proposition

We like to think that we are serving simultaneously two distinctive groups.

On one hand we are working alongside flexible food packaging producers in southern Brazil (São Paulo and Parana State). The intention is to develop ad-hoc solutions in alignment with three of the five largest food packaging film companies in Brazil. The goal is to validate at industrial scale what has given promising results at bench/pilot trials in terms of quality and price. In this next step we also plan to approach all regulatory aspects in companion with our R & D partners, so that our technology would be ready to be used by this major producers and catalyze penetration into mass consumption. On the other hand we serve common society in south & southcentral Brazil summing 114 million people, with emphasis in low income population. In the sense that CLAYFUSE aims to produce food packaging being price competitive to equivalent technologies or even cheaper. There are new technologies available for flexible food packaging (biopolymers, edible films, etc.) but they are more expensive. We want less privileged socioeconomic segments to use more sustainable products without affecting they’re capability to buy food goods

CLAYFUSE is an organically modified nanoclay designed to exfoliate during polymer melting phase intercalation using a tween scroll & high share extruder to produce a masterbatch. Finally, during co-extrusion of the barrier film, exfoliated clay platelets create a tortuous pathway through the film´s thickness acting as a diffusive agent for gas molecules (eg: O2 and CO2).

The first and crucial step to produce nanoclays relies in the selection of the proper clay source. Argilos has invested more than 6 years mapping and characterizing all available specialty clays in the MERCOSUR area in order to assure that physical and chemical properties match all requirements. Figure 1 shows some of the clays we have been working with.

Figure 1. Several specialty clays from MERCOSUR

Raw clays are purified to enrich smectite content followed by organic modification (Organophillization) using green chemistry and food stuff approved organo-compounds. Figure two shows an XRD pattern of the same Na Bentonite from southern Argentina after several functional treatments.

Figure 2. XRD pattern showing some of our green chemistry treatment

Advanced clay processing is currently being conducted in our own pilot plant that has sufficient capacity to produce 10 TN/month only in the functionalization stage. Previous and final stages of the whole process are yet to be installed (see figure 3). Finally, polymer clay nanocomposite is produced in sequential extrusion (barrier middle layer) and coextrusion (multilayer film), carried out by one of our R & D partners in industrial scale devices. The final food packaging film when using CLAYFUSE, can be traced after discarded using UV-VIS or FTIR spectroscopy with portable devices, which can be installed in recycling units on an estimated cost of US$ 5000 to 12000

Our plant

Moreover, we are able to incorporate smart functions into the film such as antimicrobial, controlled release, color indication and more. But our current priority is to enter market with the barrier function first and eventually expand to more innovative features. The promoting startup “ARGILOS"; has developed many solutions based on our own technologies and specialty minerals know how addressing a broad variety of industries with the common goal to tackle climate change by promoting a more bio-nutrient based and circular economy

Nanoclays have been used as barrier additives in the plastic industry for more than 40 years. However, our solution is innovative in many ways:

• Formulation: We use an organic compound in our functionalization stage to produce organoclays, which has not been reported for such an application.
• The process: we carry two steps in the purification & surface treatment process that are neither published nor patented (To the extent of our knowledge)
• Change in business model: We have incorporated in the same technology, a harmless substance that would give a unique signal in the visible light spectrum; so that it can be easily traceable. The goal is to maximize recyclability and we plan to reuse it ourselves. Consequently, we will establish circularity within our process by training local recycling nets and waste workers to ensure efficiency.
• Clays: The fact that we have thoroughly studied locally available clays and we have tailored solutions based on their special features; is a tool that very rarely a startup would have. This applies not to the CLAYFUSE technology but it does to other solutions that ARGILOS holds.

• Our pilot scale trials consists in an 18 L batch reactor for nanoclay functionalization and 500 kg/hr twin scroll extruder to produce the masterbatch. Results thus far are promising in terms of performance and price, but we lack resources to perform a full evaluation and commercial certifications.
• Extensive Know how of locally available clays and applications.(Gabo; Machado, Valenzuela-Díaz, & kah, 2017; Gabo Machado, Christidis, Dani, Mexias, & Henrique, 2016; Gabriel G. Machado, Christidis, Dani, & Mexias, 2013; Gabriel Gonzalo Machado, 2012)
• We have proven that mechanical strength of resulting plastic films after using CLAYFUSE, will not be affected under at the concentrations required for optimal application. Julio Harada et al., 2019 (15th Brazilian polymer conference)
• One of our partners has more than 30 years in the polymer processing business and is a reference in the topic.
• We are a motivated & multidisciplinary team that provides the right balance between knowledge youth and industrial experience.
• Our research partners hold more than half of the targeted market share and are looking forward to become our customers.
• ARGILOS Shareholders have invested a great deal of their own money and time. We won’t give up that easy.

1. Today we are only serving those companies for whom we are tailoring CLAYFUSE; estimated in 1000 persons.
2. A year from now, we expect to have reached the market up to 30% of our projected processing capacity attending Local Market mostly in Sao Paulo & Parana State.  It would imply over 20 million people benefiting with 45000 T/year of fully recyclable and traceable food packaging.
3. Five years from now, we aim to expand into the MERCOSUR market with CLAYFUSE along with more than 40 other sustainable technologies having Technological readiness level over 5 today. In such scenario we would be serving over 300 million people.

Argilos is composed by 3 full time partners, 6 specialized technical cooperators, 8 associated researchers, 3 part-time staff and several international scientific advisors (Pro-bono). 

• 15 years of experience in clay applied mineral processing
• Extensive knowledge on local raw materials
• More than 30 years of experience in the plastic processing industry
• We already have at industrial scale, processing machinery for the most sensible stages of the production process.
• We have engaged in R & D partnership with major players of the targeted market
• We are located in the largest industrial and consumption pole of the region for our solution (Sao Paulo, Brazil)
• We have strong roots at the University of São Paulo, one of pioneer universities according to the Ellen McArthur foundation. 

We are interacting as research partners with the private companies PARNAPLAST and VALFILM, they constitute potential costumers if we are able to scale-up. Another private company named Extrusa pack, is working with us over new possibilities which does not directly attend the hereby stablished market, but provides us with relevant experience on bio-based polymers for mass consumption products. Finally, we collaborate with the University of São Paulo (USP) in various ways as with a Federal University (UFABC) and the Nuclear and Energy Research Institute (IPEN).

ARGILOS is currently raising funds on several fronts in order to scale up to industrial production. Our search is mostly addressed to support institutions, financial instruments or equity investment. Also future sales have been adopted as a way to grant future revenues in association to joint R & D projects with potential end users of our solutions. The technology CLAYFUSE still needs an approximate investment of US$ 125K to perform pilot full optimization stage, fulfill regulatory affairs and commercial certifications before reaching commercial readiness. Nevertheless, we have other sustainable technologies that can immediately go to market if we can have access to the complete capital investment we are looking for.

Once we are funded, our financial valuation according to the discounted cash flow model (DCF) over a 10 year discount period and a discount rate of 30% offers the following results:

• Expected revenue at 100% production: US$ 4.5 M
• Op. Margin: 42%
• Break-even point 15 months
• Payback 32 months
• TIR: 58%

Argilos is an ambitious project in the sense that promotes disruptive changes towards a more circular and sustainable economy in all of our technologies. Therefore it is unlikely to be funded by traditional venture capitals or financial institutions. We are willing to obtain from the IDB lab resources to execute CLAYFUSE pilot tests and achieve commercial viability. Additionally, we would also like to evaluate climate investment opportunities to scale our current pilot plant to a fully industrial facility, in association to all of our technologies, from which we would like to outstand:

• ARPH: Nutrient recovery & reuse from sewer sludge aiming to control cyanobacterial proliferation while producing a phosphorus & carbon rich bio substrate for urban vertical farming.
• ARMIN: Multifunctional sorptive clays to treat uranium mine tailings and reuse sorptive clay matrix as self-healing engineered barrier in the solid nuclear waste final storage.
• PYROS: A clay-based halogen free flame retardant for polymer applications.

A very effective interaction with the CETEA/ITAO (Food technology center) & ANVISA (National sanitary surveillance agency), must be pursued in order to accelerate all regulatory aspects and certifications. Usually this represents a bottleneck for small organizations like a startup for being a heavily bureaucratic system.

We are also interested in discussing cooperation possibilities of with one of supported initiatives from the IDB-SOLVE team named Plastics for change. We are most impressed by their successful model and perhaps we could enrich our recycling strategy by learning from their experience.