Periodic Reporting for period 1 - GELATEX (The first process to synthesize Leather ‒ A fabric with the identical chemical composition and exact mechanical properties as leather)
Reporting period: 2019-07-01 to 2019-09-30
Producing leather today relies on tanning raw hide or skin to produce a stable, durable and breathable material that people seek out for its beauty as well as practicality. Despite significant demand from the fashion industry, today, no replacement material can offer the full properties of leather and thus its production grows yearly. However, the leather tanning process is known to be harmful to humans and the environment: it involves the extensive use of harmful chemical products, such as chromium salts (Category 1 carcinogens), and is very resource-intensive. Over 100 billion tonnes of water and 1 billion tonnes of chemical waste is produced by the tanning industry annually. At the same time, only about 20% of the raw hide becomes leather, after which time, more than 20% of the leather material is further wasted through cut-off disposal due to the constraints of hide shapes, sizes and quality.
At a time when environmental campaigners, pressure groups and growing portions of society are increasingly demanding change towards more sustainable societies and economies, our product, Gelatex, has the potential to eliminate the highly chemically polluting, water-intensive and wasteful genuine leather tanning industry. Gelatex is the first fabric with identical chemical composition and properties to leather, made from gelatine (a waste product from the meat industry). The overall objectives of the Gelatex project, to reproducibly guarantee high quality, durability and leather-like properties, have been outlined to be: 1) Optimisation of Gelatex material properties and pilot line construction, necessary for the preparation of sufficient material for pilot capsule collections; 2) Preparation of production scaling and quality assurance; 3) Material certifications and IP strategy development; and 4) effective deployment and execution of our pre-commercialisation and communication strategies.
At a time when environmental campaigners, pressure groups and growing portions of society are increasingly demanding change towards more sustainable societies and economies, our product, Gelatex, has the potential to eliminate the highly chemically polluting, water-intensive and wasteful genuine leather tanning industry. Gelatex is the first fabric with identical chemical composition and properties to leather, made from gelatine (a waste product from the meat industry). The overall objectives of the Gelatex project, to reproducibly guarantee high quality, durability and leather-like properties, have been outlined to be: 1) Optimisation of Gelatex material properties and pilot line construction, necessary for the preparation of sufficient material for pilot capsule collections; 2) Preparation of production scaling and quality assurance; 3) Material certifications and IP strategy development; and 4) effective deployment and execution of our pre-commercialisation and communication strategies.
Technical: a detailed work plan was prepared, outlining and justifying the necessary steps for Gelatex material optimisation, whilst demonstrating scalability of production and preparing sufficient material quantities to ensure successful pilot capsule collection creation with potential customers. These pilot projects will be essential to ensuring effective Gelatex market entry across the fashion, automotive and furniture industries. A risks analysis was performed to identify risks and prepare possible mitigation and corrective strategies.
Commercial: the global leather market (incl. genuine, synthetic and bio-based leather) was analysed, with particular focus on the segments applicable to Gelatex market entry (i.e. fashion, automotive, furniture). Our business model and production strategy was assessed within this market and the best route forward identified. An analysis of potential competitors allowed us to determine realistic pre-commercialisation, commercialisation and communication strategies, with sectoral and geographical segmentation for each target market. Barriers to commercialisation were identified and possible mitigation and corrective strategies proposed.
IP: we performed a thorough analysis of the IP situation related to Gelatex, which allowed us to conclude that we are free to operate globally without infringing the IPR of others. We thus defined steps towards further protecting our IP through patents and trade-secrets.
Regulatory: during this study we were able to identify the required certifications for the successful commercialisation of the Gelatex material (i.e. material properties as well as eco-labelling). Steps towards obtaining the necessary certifications were defined.
Financial: we evaluated the investment needs for the full execution of a Gelatex phase 2 project, with the overall budget distribution proposed, aiming to reach full Gelatex market deployment by Q1-2022. Using financial projections to 2026, we were able to quantify expected profitability, return on investment as well as the payback period of the project. This also allowed us to define the most cost-effective Gelatex material production strategy and thus consolidate a feasible business plan.
Commercial: the global leather market (incl. genuine, synthetic and bio-based leather) was analysed, with particular focus on the segments applicable to Gelatex market entry (i.e. fashion, automotive, furniture). Our business model and production strategy was assessed within this market and the best route forward identified. An analysis of potential competitors allowed us to determine realistic pre-commercialisation, commercialisation and communication strategies, with sectoral and geographical segmentation for each target market. Barriers to commercialisation were identified and possible mitigation and corrective strategies proposed.
IP: we performed a thorough analysis of the IP situation related to Gelatex, which allowed us to conclude that we are free to operate globally without infringing the IPR of others. We thus defined steps towards further protecting our IP through patents and trade-secrets.
Regulatory: during this study we were able to identify the required certifications for the successful commercialisation of the Gelatex material (i.e. material properties as well as eco-labelling). Steps towards obtaining the necessary certifications were defined.
Financial: we evaluated the investment needs for the full execution of a Gelatex phase 2 project, with the overall budget distribution proposed, aiming to reach full Gelatex market deployment by Q1-2022. Using financial projections to 2026, we were able to quantify expected profitability, return on investment as well as the payback period of the project. This also allowed us to define the most cost-effective Gelatex material production strategy and thus consolidate a feasible business plan.
At Gelatex, we have developed a cutting-edge new method of synthesizing layers of fibrous material, made from gelatine, creating a fabric of unprecedented quality, chemically equivalent to leather. Gelatex is the first to deliver this new hide-like leather. The material is designed and configured following the industry requirements on tensile strength, resistance (to tear, to flexing, to puncture), good heat insulation, permeability to water vapor and comfort. Ours is a scalable and efficient process allowing for Gelatex to be sold at 50% of the cost of current genuine leather. Gelatex is the first technology with the ability to enable sustainability in the €100 billion genuine leather-producing industry by tangibly reproducing leather properties in a commercially viable way.
Gelatex’s material properties and efficient production method will impact the environment, society and economy positively, by: 1) potentially eliminating the highly chemically polluting, water-intensive and wasteful genuine leather tanning industry; 2) catalysing a consumer shift towards bio-degradable products, produced in sustainable ways, by offering a material substitute with identical properties to genuine leather; and 3) encouraging growth in the niche bio-based leather and sustainable fashion markets by being the first sustainable solution to offer properties the strength, durability, breathability, water-resistance, look and feel of leather.
Gelatex’s material properties and efficient production method will impact the environment, society and economy positively, by: 1) potentially eliminating the highly chemically polluting, water-intensive and wasteful genuine leather tanning industry; 2) catalysing a consumer shift towards bio-degradable products, produced in sustainable ways, by offering a material substitute with identical properties to genuine leather; and 3) encouraging growth in the niche bio-based leather and sustainable fashion markets by being the first sustainable solution to offer properties the strength, durability, breathability, water-resistance, look and feel of leather.