Hello, welcome to this Carbios Strategic Update 2023. I am very pleased to be with the Carbios leadership team to present you our updates on our strategy. We are facing a global challenge. Every year, we produce on Earth 460 million tons of plastic, this is a growing number. Most of this plastic is made from petrol. It's petrol-sourced from over 99%. We have a key issue. This plastic produce a huge quantity of waste. We estimate that there is over 350 million of waste, which is produced every year. The vast majority of this plastic waste is not recycled today. Less than 10% of the plastic we use is actually recycled.
Most of the plastic we use are landfilled, incinerated, or unfortunately, for 9 million tons, which is a huge quantity of plastics, 9 million ton of plastics end up every year in the oceans or in the river. It's time to act. It's time to do something positive for the planet. The consumers are worried. The pollution, the plastic pollution, are the second environmental issue after the climate change. The vast majority of consumers and citizens would like to use less plastics, but they don't find alternatives and sustainable or suitable alternatives to the usage of plastics. Of course, there are some initiative to reduce or reuse some of the plastic we use, but we are not going to get to a vast change if we don't change the way we recycle plastics.
What if plastic and textile could enter into the circular economy? This is what we want to do at Carbios. At Carbios, we are convinced that we can positively impact the future. Carbios, we lead the biotech expertise to catalyze plastic and textile circularity at scale. Let us show you our purpose.
Let's free the oceans and land from further waste. This can only be achieved when all the plastics and textiles already in use are effectively reduced, reused, and recycled. This is the reason we rally forces and catalyze unprecedented expertise-based partnerships to innovate in biorecycling and biodegradation technologies. It's why every day we develop unique enzymes that make our core technologies thrive, and why every day, this teamwork makes the circularity of plastics and textiles possible at scale. At Carbios, we are renowned scientists, engineers, and entrepreneurs. Nature is our inspiration.
We need biotech expertise to catalyze plastic and textile circularity at scale. This is our purpose. Carbios has developed a very large ecosystem of very strong partnership to enable our ability to take a worldwide leadership. First of all, we have brand partners supporting our technology. A few years ago, we started with a packaging consortium with major brands like L'Oréal, Nestlé Waters, PepsiCo, Suntory. In 2022, we added textile brands, major textile brands in the textile consortium with On, Patagonia, PUMA, PVH Corp., and Salomon. Those brands are enabling the technology and helping us to find outcome for the products. Of course, we have also strategic shareholders, which have been supporting Carbios since many years: L'Oréal, Michelin, L'Occitane. We also have a very major leader foundations, which are acknowledging the Carbios potential technology.
Solar Impulse, a few years ago, acknowledged that Carbios technology as one of the most disruptive solution for plastic circularity. More recently, we joined Ellen MacArthur Foundation, which also is a way for us to contribute to this problem of plastic pollution. We have institutional finances, which are supporting us through financing. I'm thinking about the European Commission, the LIFE projects, ADEME, the Region Grand Est, and others, which are helping our development. Carbios would not be where we are without strong partnership, academic partnerships, for the development of our enzymes. Since the beginning, we collaborated with the Toulouse Biotechnology Institute, CNRS, TWB, INRAE, INSA, and others, to facilitate this ecosystem of academic research around the enzymatic solutions. In 2023, we signed a very strategic long-term exclusive agreement with Novozymes.
Novozymes being the worldwide leader in enzyme production, this is a key milestone to secure for us the long-term production and supply of our enzymes. Finally, we have strong industrial partners, Indorama, to help us on the first plant, Indorama being one of the largest PET producer in the world, Technip Industry, Technip Energies, sorry, which is helping us on the engineering side to develop our technologies. Carbios is really at the center of an ecosystems to enable a change in the, in the circularity of plastics and textile. I will now introduce a short video of our partners.
Martin Luther King said, "We must learn to live together as brother and sister, otherwise we are going to die together like idiot." I think what I like in the system on the textile consortium we are working on with Carbios, is we try to act together to not destroy the planet. That's why we need to collaborate as much as we can if we want to act fast.
We are not in competition. In fact, we are in competition in product design, marketing, consumer acquisition, but on material sourcing, we are not in competition. Nothing can be done alone by ourselves. We are too small. So there is no reason why we shouldn't collaborate with our own competitors.
We use polyester, we are really interesting in being able to circle this post polyester and use it back. The first step we did is we worked to improve and to create recyclable material, recyclable product, and we create a shoe that is recyclable and we collecting them. The idea behind that was really to keep the purity of the material, because today we recycle a lot of things, but we mixed all the material, and that's not the solution. That's how we got into connection into some company that are doing the recycling, because we want to keep the purity, so we need to figure out how to recycle the material.
The issue, like, all in, here you know, is that this recycled material, we are losing some mechanical properties, and because we are focused on technical product, we need high-quality material. Those two topics push us to work with Carbios on the, on the topic of recyclability.
Since I've been working with Carbios, well, first meeting was in about 2017, so it's a long, longer journey together. What we have in mind today is that we have always felt free to use whatever material we want. This will may be not the case tomorrow. What is for sure important is that we begin circularity, so any material we will use from now and in the next future will have to be circular. Up to now, it's 100% mechanical recycling source. It's not virgin-like, so marketing people hate me because it's not really clear, so we are strongly waiting for Carbios.
Carbios is driven with very strong ambitions. Our purpose is the planet. We want to provide the most sustainable and most circular solutions for the end of life of plastics and textile, and we aim to be the ESG best-in-class in our industry. Of course, we won't do that without assembling a team of talents. We have strong partnership, but we need also talents to attract, retain the best talents in that category and be the best place to work. We want also to deliver for our shareholders, to become the world leader in PET recycling by 2035. We are convinced that our technology is so disruptive that it can allow us to become the leader in PET recycling. We are delivering on our milestones. In the last few years, we have gained significant milestones on the scientific side.
We have After the publication of Nature in 2020, we have got significant publications with the Biop hysical Journal in July 2022, and Chemical Reviews this year in March. We have also our Chief Scientific Officer, Alain Marty, won the Biocat Award, which is a very prestigious award. On the industrial scale, we are also on time. We have completed our demonstration plant in the last summer, and we have edited, at the end of the first quarter, our Technical Information Summary, which is the first milestone to design the future plants. We have also, as already mentioned, signed a long-term exclusive agreement with Novozymes, and last week, we announced the partnership with Indorama, which has been confirmed for our first plant in Longlaville, northeast of France. On the corporate sides, we continue to acquire talents.
Our executive committee has been pretty much reshaped, with five new additions this year, and our board of directors also with six new members joining the board of director of Carbios. In 2022, we launched, as I mentioned, a significant consortium with key major brands engaged in circularity on the textile side. We published at the end of last year, our first sustainability report. We joined the Ellen MacArthur Foundation to engage ourselves on the circularity of plastics and textiles. Recently, we were chosen as one of the 10 flagship company by the French authorities to present our technology at Choose France Summit in Versailles, and we were at the same time, getting the Coq Vert Community launched by Bpifrance and ADEME. That's significant recognition of Carbios' breakthrough.
On the financial side, we had, as already mentioned, a loan of EUR 30 million of the EIB at the end of 2021, and we just announced the confirmation of notification by the French authorities of public aid totaling EUR 54 million, that will be submitted to the European Commission, and Indorama Ventures partnership that will mobilize EUR 110 million for the construction of our first plant in Longlaville. Later on in this presentation, our CFO, Mr. Bricault, will come back on the key elements of our business model. We have proven the business model with different examples. This business model is rich, based on a licensing technology, which is CapEx lean and three pillars of incomes.
Upfront incomes with licensing fees and two recurring incomes with the enzyme royalty and the royalty paid by the licensee. We will go back on the volumes we expect to achieve by 2030, and the market share we intend to capture with our disruptive technology. We also come back on the profitability we will generate per tons, which is significant at the end of this presentation. As I already said, we have a significant support from the French state. We have received, last week, EUR 54 million aids, totaling EUR 42.5 million for the construction of our first plant in the northeast of France. Split between EUR 30 million of the French states via France 2030 program, and EUR 12.5 million subsidies from the region, Grand Est.
All of that subject to ratification to the European Commission. We were also granted EUR 11.4 million between us and our research partners to continue to accelerate on our R&D efforts. In total, since the beginning of Carbios, we have obtained EUR 70 million aids from the French state. Last week, the French president, Mr. Macron, testified with a post on his trust on Carbios' disruptive technology for the future of the planet and the future of France. We signed last week a memorandum of understanding with Indorama, which is also a key milestone in our development, to form a joint venture for this first plant in the northeast of France, where Carbios will own 75% of the stakes and Indorama 25%.
Indorama will mobilize in total, EUR 110 million between the equity part and the non-convertible loan part, to finance this plant. We will also, Carbios will acquire the land, 13 hectares of land, to build this first stage, 50,000 tons of capacity and the capability to double the production later on this land. Indorama will ensure 100% of the repolymerization, which is needed for the repolymerization of the PET, and we will work jointly with Indorama to secure the feedstock for this first plant. Let us show on a video, this announcement of the partnership. This announcement between Carbios and Indorama is a key milestone in developing our partnership. It is also a major step towards realizing the first PET biorecycling plant in the world.
The technical due diligence, jointly undertaken with Indorama, proves the robustness of Carbios' disruptive technology. At Carbios, we are committed to bringing plastic and textiles into the circular economy. Our first plant in France is a springboard for our industrial and commercial deployment worldwide in order to reach our leadership ambitions in advanced recycling of plastics. I want to thank Mr. Lohia, father and sons, for their involvement in this partnership.
Under our vision 2030, Indorama Ventures is building on our chemical industry leadership in sustainability, including spending $1.5 billion to increase our recycling capacity. To achieve this, we are partnering with specialist innovators in advanced recycling technology like Carbios. That allows us to speed up the creation of a fully circular PET economy. We are encouraged with the positive results of the due diligence our teams have performed so far on the technical soundness of Carbios technology. We are confident that this groundbreaking development could be a valuable addition to the range of solutions for the circular economy of PET plastics and fiber. Subject to the successful performance of the Nogent project, we're considering expanding Carbios' technology to other Indorama Ventures PET sites worldwide for future development.
Let me now introduce Stéphane Ferreira, our Chief Business Officer, who will come with you, drive you through the market perspective of PET recycling and the way Carbios is differentiating itself. Please welcome Stéphane Ferreira.
Hello, I'm Stéphane Ferreira, Chief Business Officer at Carbios. Let me share with you some PET market insight. When we think about PET, for most of us, we think about beverage, we think about food and beverage industry. Indeed, PET is among the top four plastic in the world with a broad range of applications. You can find PET as very versatile materials in automotive industry, for instance. You can find PET within healthcare and medical applications, as well in textile. Textile being a huge part of the PET market. We find PET, of course, in cosmetics, in industrial applications. Basically, PET is all over, and there is a huge application of PET globally.
Thinking about the market dynamic of the PET, it looks like this: When we look over the years, from 2025 for 2050, considering all kinds of PET, meanwhile, virgin PET, mechanical recycled PET, and advanced PET, it's roughly a 2.5 growth every year. When we look at the overall perspective, it will move from 100 million tons in 2025 to almost 200 million tons in 2050. When we dig into that market, more specifically to get what is recycled PET versus virgin PET, it looks like this. In that scenario, indeed, we consider two different scenarios. On the left side, you have a pretty conservative scenario, which gives the ratio of virgin PET versus recycled PET.
On the left side, you get a more positive scenario, a more optimistic one versus circularity, which gives a different trend in terms of circularity of PET within the overall consumption. The shift would be in 2035, where we see definitively that recycled PET within the circular economy would be roughly 30% of the total use of the PET. Looking at 2050 as being a bit the midterm vision we have, it would be half of the total market. The difference between the pessimistic scenario and the more optimistic one would be with three main enablers. Number one is about sorting and collection of the textile. Textile is a big waste, the collection of the textile is very important and the sorting of the textile as well.
The second thing would be about the use of that waste, as a waste within the recycling activity. The third one would be the scale-up of the advanced technologies for recycling activities. Those are the three mains things that could change the ratio between optimistic and pessimistic scenario in terms of recycling activity. When we dig one step ahead within what is recycling activity, that's what it looks like. You have on that chart, what could be the ratio between virgin PET, recycled PET, meanwhile, the mechanical PET, and advanced recycled PET with Carbios technologies in there. You see that those three different segments get totally different dynamics in terms of annual growth. For the total recycled PET, we think about 8% growth a year, every year.
When we look at advanced technology for recycling, it's a double-digit. It's 17%-20% growth every year. When we look at maturity in 2050, could be something like 56 million tons of recycled PET within the advanced part of our activities, and it's roughly a 200 billion size revenue activity, which is really a huge market. What about the factors enabling that circularity? Indeed, with the marketing team, we thought about 10 different factors, some being the demand factors, some of us being the supply factors, to explain why we have that circularity coming. Indeed, among those 10 factors, I would just point out three of them. Number one, it's about use per capita, so consumption.
Once again, PET gets very versatile applications. These markets are growing every year, there is a need for additional PET. The second thing is about the expectations from consumers having some greener solutions. Consumers like you and I, we are willing to get a better world. We want something being more circular, there is a real need of the consumer for some more circular content. The third one is about the willingness to pay, this one will be covered later on in the presentation, those are the three key factors that I wanted to point out in this part of the presentation. When we think about the brands, indeed, brands definitively play a key role in that transition. Just some extract from ESG annual report, from 2021, 2022. You know, we picked up four brands in four totally different sectors.
One from housing and furniture, one within the sport industry, one within the automotive, and the last one being in beverage. When you look at the ratio that they claim on their annual report, definitively, that's a big call for circular product and recycled content from 40%, 46% to 100% of recycled PET, recycled plastics within their consumption. If we look at regulation by the government, it's the same. If you look at what happens in North America, if you look at what happens in Asia and also in Europe, definitively, it comes. All the regulations across the regions call for more sustainability and more recycled content.
I would just point out, the PPWR, so packaging and packaging waste regulation coming in Europe, claiming for 65% of recycled content within the packaging for 2040, which is really huge demand in terms of recycling content coming for us. When, I look at it, I think it's time to hand over to Delphine Denoizé.
Thanks, Stéphane. Delphine Denoizé, I'm the Innovation Programs Funding, regulatory, LCA Director. Carbios PET biorecycling technology brings value all along the industrial chain while preserving the planet. Thanks to a plug-and-play system on existing PET facility, Carbios technology can treat all kind of PET waste: plastic, but also textile and fibers. This allows for a true circularity per industry and enhances the circular economy by producing virgin-like PET and reducing CO2 emission. Carbios technology is labeled by Solar Impulse Foundation as an efficient solution. Let's listen to Bertrand Piccard, founder of Solar Impulse Foundation.
Carbios is exactly what I call the qualitative growth. You make money, you create jobs, you develop a company, and more than that, you develop a new business. You develop a new industry that allows to transform the problem into an opportunity. You take the waste, you recycle them in a profitable way to be able to reuse them. Really, congratulations for what you do. Really, congratulations. Now I hope that there will be enough pioneers and explorers to use your invention and to create the necessity to implement it everywhere on the market.
Carbios biorecycling technology breaks down plastic and textile waste into PTA and MEG. These two monomers can be directly used and repolymerized into recycled PET in existing production unit. Today, more than 95% of PET plants use PTA and MEG, the other remaining 5% being older plants using DMT. By plugging into existing large-scale PET plants, Carbios biorecycling technology avoids CapEx for new plants. This represent a considerable advantage in terms of cost competitiveness, also from an environmental point of view. In addition, Carbios rPET has the same processability as virgin PET. This means that there is no need to change or adapt converter lines or equipment, there is no impact for them to use Carbios rPET. This has created interest for investing in Carbios technology. Carbios process gives value to 78% of PET waste, which are not currently recyclable.
Carbios technology can treat colored, opaque, and multilayer waste, but also textile and fiber waste, and residues from current conventional recycling processes. By always coming back to the two monomers, low-grade food is transformed into recycled PET that is suitable for food contact applications. As our technology is flexible and can treat all kinds of waste, we are able to source locally as much as possible. We therefore estimate that the average mixed feedstock price will be 50% to 60% less expensive than from current bottle-to-bottle recycling process. By saving value to non-recyclable waste management companies will also benefit with new commercial outlets.
Regarding the feedstock prices, the price of clear bottle flakes is between EUR 1,500-EUR 2,000 per ton, while feedstock targeted by Carbios technology is less expensive: EUR 1,000- EUR 1,400 per ton for color flakes, 300-500 EUR per ton for multilayer trays, around 250 EUR per ton for residue from mechanical recycling, and EUR 0- EUR 500 per ton for polyester textile. As you can see, the average price is estimated at 60% lower than for bottle-to-bottle recycling. Carbios process enables full circularity for each industry. We can recycle fiber into fiber, but also colored and opaque packaging into clear PET packaging. This avoids feedstock competition between textile and packaging industry. It also avoids the down cycling of food grade bottles into fibers.
We are also able to produce transparent and high grade bottles, regardless of the quality of the packaging flakes. Carbios biotechnology, by recovering monomer and assuring the high quality of rPET through many cycle, is the most circular technology. It maximize the number of recycling cycle from three or four for conventional recycling technology, to 10-20 with its biorecycle technology, and this without any compromise on the final recycled PET quality. It allows to move away from a linear economy to a truly circular economy, and therefore reducing our dependencies on fossil resources. Carbios rPET is safe and high-performing. It has exactly the same mechanical and technical properties as virgin PET. We use a water-based process without organic solvent, and our purification steps are very efficient.
We therefore produce a very high food grade quality rPET, with no trace of bisphenol A, for example, and suitable for any PET application, whilst always ensuring health security. Carbios life cycle analysis meets the highest standards by saving more than 50% of CO2 emission compared to virgin PET. It avoids conventional and end of life for waste and can't be recycled using current process, transforming this waste into resources. Carbios process is soft, with depolymerization conducted at low temperature and without pressure and no solvent. The main benefits are less greenhouse gas emission, less energy consumption, and minimize health and safety risk for operators. Carbios biorecycling technology thus saves around 500 kilograms of CO2 per ton of rPET.
Thank you, Delphine. This is fantastic. This is fantastic. Look at this. We have here six unique propositions, six unique features at Carbios for biorecycling, which gives us, not only for today, but also for tomorrow, key sustainable competitive advantage within that race for circularity. When we look at it, once again, it's about plug and play. We use existing assets of PET. It's about waste and feedstock. We will use feedstock that nobody uses today. It's about circularity. We will address new segment in circularity. We can address some segment that are not addressed today. It might be within the automotive, might be in health and care, might be some new segment. It's about enhancing circularity with more cycle to the same product.
It's about, as well, the virgin-like quality, basically, we will produce a product as good as getting the same physical and chemical properties than the initial virgin product. Last, but not the least, we will contribute to CO2 reduction with a minus 51% CO2 emissions within that race. We will contribute to all the CO2 commitment of the customers with whom we work. Looking at the full value chain within the circularity, at Carbios, we contribute, and we think that we have key competitive advantage, not only for today, but also for tomorrow. Saying that, let's listen to Mr. Jean-Marc Boursier, expert in circular economy and waste management.
I truly believe so. Carbios solution is an alternative to new fossil extraction. Waste is considered as new entrance and is then reprocessed with no degradation of quality. Carbios solution, which enables closed loops and multiple loops, is truly circular. In other words, Carbios contributes to solve plastic pollution and mismanage waste management for the benefit of the planet. Clearly, its ability to work with the best possible partners. For instance, in the field of scientific world, joint work have been done on enzymology and polymer science. With Novozymes, a world leader in production of enzyme, where an exclusive and long-term partnership has been recently announced, and with very famous and worldwide brands for plastic and textile recycling.
Two consortium have been created, one for PET recycling, with companies like L'Oréal, like Nestlé Waters, or, like PepsiCo, and another one for textile recycling, with notably, PUMA, Patagonia and Salomon. This holistic approach with a top-class partner is clearly what drive the success for such a global change. In my opinion, the Carbios technology has several key benefits. First, its ability to deal with complex plastic waste, which are not easily recyclable through conventional technology. I think about opaque, multilayered, or colored plastic. Second, its efficiency at a low temperature. Third, its sustainability with lower CO2 emission. Fourth, its quality, because the recycled monomer have a virgin-like quality. Finally, its safety. The process is solvent-free. It is a biological process, and therefore much safer for food grade application.
Where do we stand? We have a growing market that will double in couple of years. In that segment, we have key features that will enable us to get higher within that race, that race for circular product, for recyclability within the advanced technology, but within also the overall mechanical product. When we think about the value we create within the value chain, we are confident and comfortable in creating value within the value chain, also in terms of pricing.
Looking at what the feedstock is about, looking at the features we bring to the marketplace, that we bring to the end users, to the consumers, that we bring to the brands, that we'll bring as well to waste management company, we do see a premium in terms of pricing that we'll offer to the marketplace between virgin PET, classical mechanical PET, and also within the pot of the advanced recycling technologies. Not but the least, thinking about what we want to achieve as a team at Carbios, the blue line represents the target we have in terms of market share within the overall recycled PET, and the green dotted line represents the market share we will take within the advanced recycling activities.
If you take 2035 as a key target and milestones for us, we see that in 2035, and I like it very much, we'll be above the 10% regarding the recycled PET and will be slightly above the 35% in terms of advanced recycling market share. That's what we want to do at Carbios, and that's what we work at. I let the floor to you, Arnaud Tillon, Marketing Director of Carbios.
Thank you, Stéphane. What we have just seen is that our Carbios biorecycling technology brings incredible benefits to all the players in the industrial value chains. What I'm going to comment now is that not only it does bring benefits to the value chain, but it brings as well, benefits to the consumers. If we go back for one second to the consumer research study that the Carbios insights team conducted last year in Europe and in the U.S., we have the confirmation that despite challenges, consumers, the challenges consumers are facing with plastics, they adopt more eco-friendly behaviors on a daily basis. There are three key learnings that we need to remember. One, consumers don't know much about plastic, and they are very confused about what plastic are recycled, what plastic are recyclable, and which ones are not.
Despite that lack of knowledge, 80% of those consumers are committed to sort more and more for future recycling, or at least committed to be more careful about the waste management they have at home. The second key point is that 68% of the consumers don't trust really the effectiveness of the recycling system. Eventually, it comes to the third point: 57 of the consumers don't believe that their effort are paying off or making any difference. That's why, ultimately and intimately, they are very afraid that it is too late to reverse the plastic pollution, and they feel there is too much responsibility that is lying on their shoulders. That's why they ask to institution and also to brands, that they ask them to provide solutions for more eco-friendly, circular, let's say, products.
The information of that slide is that for eco-conscious consumers, so the early adopters of eco-friendly behaviors, eco-friendliness of packaging or fabrics is becoming one of the most important purchasing criteria across various CPG categories. Those same consumers, the eco-conscious ones, they are willing to pay for more. They are willing to pay more for those type of eco-friendly packagings, meaning packagings and textile with more recycled content, that are more recyclable. In short, packagings and textiles that are circular. The fact that those early adopters already are in this mood of selecting the right products means or predict the mainstream behavior that other consumers will have in the future. At Carbios, with Carbios Inside project, we want to go further. We want to go further and create a full communication platform targeted at consumer to win back their trust and sustain their behavioral change.
We want to create a consumer brand, a brand that would be a highly recognizable symbol of truly circular plastic, of bio circular plastics. A brand that, other or symbol, that other consumer brand can choose to display on their own product as a symbol for their own customers to choose for those brands that are truly committed to contribute to solve the plastic issue and the ocean pollution, and truly committing to see the circular economy come to life, of plastic and textile, of course. Our Carbios biorecycling technology will not come at the expense of the consumers. What we can see from that slide is that the impact in terms of cost from moving to, from, sorry, from mechanical PET to, Carbios biorecycled PET is insignificant for the consumers.
We're talking about a few cents for refreshments, for example, and less than EUR 1 for the most expensive items, like a fleece jacket, for example. I am confident that consumers will be very happy to pay less than EUR 1 for more circular product in the future. That's why at Carbios, we are extremely confident that we can lend our biorecycling technology across multiple market applications with great success. Passing over to Alain Marty and Lise Lucchesi.
Hello, I'm Lise Lucchesi, the intellectual property director of Carbios.
Alain Marty, the Chief Scientific Officer of Carbios, and with my colleague, Lise, we will describe the last achievement from the point of view of sciences and intellectual property. The optimized enzyme we presented in 2020 in the prestigious journal, Nature, was already a breakthrough. From post-consumer flakes, it was possible to achieve 90% conversion of this waste in only 10 hours from a solution of PET, which is very concentrated, 200 gram per liter. At the end of a reaction, it is possible to reach a conversion of 93% in 24 hour. This, with 2 g of enzyme per kilogram of PET. Of course, from an industrial point of view, it will be of interest to decrease the enzyme quantity.
In 2020, with 1 gram of enzyme per kg of PET, it is only possible to reach 80% conversion in 15 hours. Since then, we have optimized the pretreatment of the waste and optimized the reaction condition, for instance, from the point of view of the temperature of the mixing of a reaction. With 1 gram of enzyme, with this optimal condition, it is now possible to obtain a final conversion of 98% in 24 hours. From an industrial point of view, this is crucial because it enabled to increase the production by 5% and to decrease the amount of waste. For a 50 kiloton plant, it is an economy of EUR 0.5 million per year.
Since few years, the number of publication dedicated to PET degradation is exponentially increasing, and we are very proud to see that our enzymes is now the reference. Three of these publication claim that their enzyme is more active than the Carbios enzyme in their condition. Our strategy is to systematically test this enzyme in our industrial condition. The first two enzyme present a very poor activity. The third one present a significant activity, but always far from our performance. My colleague, Lise, would say that it is a very good example of our defensive IP strategy, because we identify already this enzyme a few years ago, we optimize this enzyme, and finally, we file patents with this enzyme in 2019. Over the past two years, we continue to improve this enzyme in order to ensure our leadership.
The enzyme is now more thermostable and, more importantly, more active. Rather than a long speech, I will show this video. This reactor contains 200 g per liter of PET. Let's go. After 30 minutes, you can see that the PET begins to be attacked. After 1 hour, most of the pellets disappear. Now, it is 1 hour and half. Finally, after two hours, all the pellets disappeared from the reactor, and the conversion is now 98% conversion. This new enzyme is now in the hands of Novozymes, and during the second semester, 2023, they will develop a microorganism to efficiently produce this enzyme, and it will be the enzyme that will be used in 2025 in our first industrial plant.
Thanks, Alain. As you said, Novozymes is a strong partner for Carbios. It will enable the long-term supply of our proprietary enzyme. In January 2023, we've signed an exclusive and global agreement, which is reinforcing the initial partnership that we've already established with them. This collaboration will enable us to develop, optimize, produce, and supply our proprietary enzyme for our first plant and also for our future licensees. Now, Tina Fanø from Novozymes, will present this agreement.
Plastic is today a very important element of our everyday lives. If we look at the numbers from OECD, if we continue with the same rate of consumption, by 2060, the amount of plastic usage would have tripled, and only 12% of that will be recycled. There is a huge need in order to do something about this situation. Plastics will remain important for us as human beings, because we need plastic in order to secure that we don't get contamination to our foods, to secure that we can extend the shelf life of foods, and also to secure that we don't have a more heavy transport like we have with bottles if they are out of glass. Therefore, plastic will remain important for us as humans.
Novozymes is very committed to invest and to deliver innovation in order to support that we move from a linear approach to a circular approach. Novozymes believe that enzymatic plastic recycling will be one of the key technologies in advanced PET recycling. Novozymes and Carbios have had a partnership since 2019. In that time, Carbios have developed the technology towards full-scale production. They have established collaborations with key players in the value chain, such as L'Oréal and Patagonia, and these have committed to the usage of sustainable plastics. Novozymes is a biotech powerhouse. We bring full-scale, best-in-class enzyme production, as well as distribution capabilities. We are very, very excited together with Carbios to working on that plastic moves from a linear approach to a circular approach.
Let's move to the IP part now. All the innovation that are developed at Carbios, and especially the one developed in Alain's lab, related to the enzymes, are protected by patents. At the end of 2022, we owned 53 patent families, each covering one innovation that could be enzyme or process, developed by Carbios. Each family, is being extended in different countries or region in the world where there is a high market interest. We currently own more than 330 patent application worldwide. The goal of our team is, of course, to, from a patent application, to get this patent application granted. We recently announced that we've been able to increase by two the number of granted patents in the last two years.
We have an active policy to secure innovation from the upstream lab phase to the industrial phase. This graph show the patent portfolio evolution from the beginning of the company, and it mostly relates to the process of recycling, biodegradation, and bioproduction, and to PET and PLA-degrading enzyme. Each patent application has a 20-year protection from its filling date, and our active policy enables us to have a full life protection indeed. For example, the patent applications that have been filled recently in 2022, they will have a protection until 2042, if granted. In 2023, we'll also have a new focus. It's to protect innovation that will be related to enzymatic degradation of other polymers, beside PET and PLA. Now, I give the floor to Lionel Arras, Industrial Development Director.
Hello, I am Lionel Arras, and I am responsible for the development of the industrial assets of Carbios. I will start this update with some information on our demonstration plant in Clermont-Ferrand. With our demonstration plant in Clermont-Ferrand, we have achieved the highest technology readiness level possible before commercial scale. We are at 7. It means that we have designed, built, and now we operate the comprehensive system in representative conditions. What have we learned with the demo plant? First, technology is robust and demonstrate the potential at the scale of the enzymatic depolymerization. It is very selective, so we work with actual feedstock commercially available, and we observe constant depolymerization performance. The reaction is not inhibited by feedstock contaminant, and we don't observe the gradation product that could make the purification process more complex.
We also have very good process performances on the downstream step, which are the recovery and the purification of the two monomers. We are confident that the first commercial plant, we achieve a 95% yield at the depolymerization step, and a 90% overall recovery on the monomers. Last but not least, the monomers quality that we get out of our demonstration plant is equivalent or better to the quality of the volumes we had at smaller scale during the development process. The demo plant is today fully operational, and it's gonna be a tool that will support the commercialization of our technology from now and for a long time. It was a EUR 20 million project.
We have installed more than 120 equipment on a 2,500 square meter building. Today we have more than 25 field technician, engineers, and PhD, working every day on the fine-tuning of the technology for the future. It has been designed in collaboration with technique and best expert in the field for a capacity of 2 tons per batch. The demo plant first step were launched in September 2021. Full system was completed in July 2022, and since then, we have been running the demo plant for data acquisition and for tuning the performance for optimizing quality, yield, and also to acquire the data for sizing the equipment at the commercial scale. More than number of equipment or the surface in square meter in the building, so the demo plant is a team achievement.
I'm very proud to collaborate every day with a very committed team, who has a project of Carbios deep in the heart. You will realize with the video timeline of the construction, what was the magnitude of this achievement. The demonstration plant results have already been used to issue the technical documentation that will be used for licensing, and Frédéric will tell us more later, how this documentation will be used in the future. It's also the reference for the design of our reference units, the first plant using technology at commercial scale. The objective of this first plant are: to generate revenue from monomer sales, to deliver first tone to partner brand owners, and to train future licensee at representative scale. As a good introduction to the project, let's have a look at the three-D model of the plant. ...
The reference unit is designed in total alignment with Carbios' strategic proposal. First, you know, we make no compromise on product quality. We have taken all the necessary design margins on purification, specification to make sure that our monomers will meet the highest standards. As life cycle analysis and CO2 emission, minimization of CO2 emission, is very critical to Carbios, we have made design choices which will minimize our energy utilization for water vaporization in our purification process, and we have also used integration wherever it was possible to do, to minimize the net natural gas consumption of our plant. The design is flexible and will accept improvement project in the future. For instance, we have made space reservation on the plot, so we can increase, in the future, the proportion of low-cost feedstock, such as textile.
Also improve, you know, the reuse and recycle of processed water, and minimize the overall waste generated by our technology. Where do we stand in the reference unit project schedule? Now in 2023, we are after the technology definition at scale. That was the 2022 activities, and it ended with the permits application in December 2022. Currently, we are finalizing the basic engineering of the plant, and we start the procurement and detailed engineering activities to anticipate as much as possible the procurement activities. We'll have a mechanical completion of the plant in 2025, as early as possible. The procurement and detail engineering activity are started, and the construction will start on the second half of 2023, as soon as we have the permits granted.
The plant hiring and the training, the plant personnel hiring and training, will be a big effort in 2024. We have already started in 2023, with the recruitment of the key management position for the future plant. It takes a lot of man-hours to execute a project of this magnitude. We have about 15 Carbios end consultants representing the owner, and 65 Technip Energies employees working on the project. Let's listen now to Bhaskar Patel, Senior Vice President of Technip Energies, will tell us more about our continuous collaboration with Technip Energies.
Technip Energies and Carbios started their collaboration in 2017. We formulated our collaboration into a demo plant in 2020. This demo plant demonstrated Carbios' enzymatic recycling process for PET plastics. The role of Technip Energies is to provide engineering, procurement, and construction management services for the demo plant. Our collaboration, which started in 2017, provide an opportunity for both companies to work together on the technical design, as well as providing a geographic intimacy through our Lyon office. The TEN Lyon office was supported by the global One TEN delivery organization, providing resources and technical capabilities as needed. TEN also brings us capability to scale up technologies from laboratory, to pilot, to commercialization. We're very confident that the technology can be commercialized.
The process works, and the final PTA and MEG monomers are the required specifications that are needed to manufacture PET. We are convinced of the potential of this technology. The Longlaville plant will process close to 50,000 tons per year of recycled waste, which is equivalent to 2 billion PET bottles.
Feedstocks are absolutely key for the success of our plant, and we are currently securing the feedstocks for the Longlaville plant. We have already signed the first contract with CITEO, together with our partner, Valorplast and Wellman, to secure food waste feedstock from France. In the area of the plant, we have 400,000 tons of available feedstocks that will grow up to 500,000 tons by 2030. we are very confident that in the coming few months, we will secure the volume to feed our plant with 50,000 tons of waste. Now, we have also updated the CapEx amount for our plant. We initially said in February 2022, EUR 200 million. We are updating that to EUR 230 million after detailed studies.
This is reflecting, of course, inflation, which has happened since, unfortunately, the Ukrainian crisis with the Ukrainian war. It's also updating some additional contingencies and long preparation that we have on the site of Longlaville. This CapEx is very competitive compared to other advanced recycling projects that have been announced. It's much lower. It's in the range of 40% lower, due to the fact that we have the repolymerization savings in this strategy. We also have a future optimization work to improve the CapEx spendings for future plants in the future. Now let me introduce Frédéric Alarcon, which will present our licensing strategy.
I'm Frédéric Alarcon, and I'm in charge of the licensing activity for Carbios. What I would like to do today is to give you some information, how we run business, how we run licensing business in Carbios. First, let's start with the various stages that we're going to run through when we license the technology. Typically, we're going to have some activities in pre-sales that we call prospect activities and promotion of the technology. We need to identify the investors that could be interested in the technology. We need to promote the technology, make presentation, site visit, product sampling. Finally, we could end up signing a license agreement. At that stage, the project will move into execution. The first step in the execution of the project would be to disclose the technology.
For that, we're going to use a key element of our deliverables, which is the Process Design Package. We will also deliver manuals, as well as all the information that the licensees knows to transfer the PDP to his EPC contractor. The second stage will be project execution itself, where the EPC contractor will develop the design of the plant that will be built. We will continue to assist the licensee with technical services, training of the people, as well as checking that the construction of the plant is in line with the requirements of Carbios to ensure that the performance of the technology afterwards will be also in line with the guarantees. Finally, the plant is ready to start up. At that stage, we will send a team, Carbios team, to the site to start the plant with the licensee.
That is called commissioning, also to ensure that we're going to run the performance test and check the performance of technology according to the guarantees. This project execution will take typically 36 months, during that time, Carbios will receive different fees related to the license, which is basically the access to Carbios' patent rights and know-how, but also the engineering fee related to all the engineering information that we will be providing, technical services, training. Eventually, after a startup, there could be some additional fees for Carbios related to potentially capacity expansion that could be required by the licensee or retrofit of development that Carbios will be continuing in doing.
If we look now at who could be the potential investors for the technology, we've got core natural investors that are the PET producers and chemical groups that are using the Carbios monomers to produce specialty products or specialty polymers, like aramids, for instance. For them, accessing truly circular monomers coming from Carbios technology will give them the potential to increase the value of their product portfolio by producing resins that contain 100% recycled monomers. If we look at the big picture, there could be other actors in the industry that can see a big interest in investing in Carbios technology. For instance, the waste management companies can see some opportunity to invest downstream with Carbios technology, to basically leverage the value of their feedstock and eventually move away from conventional end-of-life for plastics that are incineration and landfilling.
Brand owners can see an opportunity to secure the feedstock they needs for their polymers and for their packaging by investing into recycling, advanced recycling technology. Finally, public entities, municipalities, sovereign funds, can see investment opportunities to develop circularity in their economy and better management of the wastes in their states, in their regions, in their communities. If we look at the various prospects that we have already identified, you see that they are basically in three main regions: Europe and Middle East, North America, and Asia. There are three types of potential actors that can be interested in that technology. Typically, the producers with very large capacity, over 1 million tons of production, with production sites across the globe.
You got the middle-sized actors with capacity around 300, 400 kilotons a year. Finally, the smaller producers that are extremely regional, but more involved into specialty market, specialty applications. What do we need to license the technology? First of all, we need designing capacities, and actually, we've got three design model that we're gonna use to license the technology. The 20 kilotons per annum design is specially designed for small players involved in specialty applications, specialty sectors. The Carbios unit will be very much a plug-in plant within the polymerization unit at the customers. The 50 kilotons per annum capacity is very much what is needed for continental market reach, and that's typically what we're gonna build with the Longlaville plant.
We're going to have a large capacity design that will be extremely useful for the main polymer production hubs, as well as the main feedstock management hubs. We need more, we need more than a design. We need documentation for pre-sales activity with the Technical Information Summary that we have recently issued, but also with the Process Design Package and all the manuals that will be delivered to the licensee. Finally, we need an organization. Within Carbios, we will need key functions that are critical and instrumental for the proper development of the project with licensees. These are the project managers and the commissioning managers that are going to be involved into the execution of the project, up to the point where the technology has passed the guarantees and the plant has been accepted.
For the sales activity, we will also develop regional activities to ensure we capture all the potential for the technology in all regions. I'm pleased to introduce my colleague, Martine Brisset.
I am Martine Brisset, the Senior Vice President of Carbios Group, and as well the Managing Director of the Biodegradation Division. Why is that? Because Carbios has developed already a enzymatic solution for a second polymer called PLA. What is PLA? PLA is a biosource polymer made from corn, from sugarcane, and when we add our enzymatic encapsulated enzyme with the PLA, we can produce some packaging, like a flower pot, like a coffee capsule, like a food to-go trays. After usage of this packaging, we have a full biodegradation of this packaging at whatever temperature, even ambient temperature, with absolutely no microparticles, no toxicity. Look at how it works. Our enzymatic solution will support the PLA growth.
The quantity of PLA will double roughly in the coming years. We are already starting some customer market test in the U.S. We plan our first sales at the end of 2023, beginning 2024, in the food segment, because we will be food contact certified. We will do as well our first sales in Europe with some industrial packaging, with air pillows, this type of packaging. Let's may introduce our customer, Jean-Charles Moang, who is the Managing Director of Roam, and he's going to discuss and to speak about our air pillows solution.
Good morning, everybody. Carbios asked me to talk briefly about the project we have, common project we have in progress with them, and it's a real pleasure to do so because it's a very exciting project, and we believe it will be a great success. What we want to do is basically to use Evanesco in a biodegradable film, so that we can have a home-compostable biodegradable film, and we could use it in the air cushion applications. What are air cushion applications? Simply applications of protection of the goods during transportation. This application is the main application of the e-commerce, of course, and this air cushion is doing the job really well. The only issue is that consumers, more and more, are asking no plastic in the packaging.
Of course, now e-commerce is considering switching from plastic air cushions into paper protective material. I would say it's an easy transfer, it's an easy change, but it's not a good one. It's not a good one, neither for the consumer, nor for the producer. It's expensive, it's heavy, it doesn't protect well. It's the carbon footprint is really high, about 10 times higher than the one of air cushions in plastic, and the paper is very difficult to get rid of for the consumers. The way in between the paper on one side and the air cushions, plastic air cushions on the other side, is a biodegradable, home-compostable air cushions. This is what we are working on. We are now close to completion.
We have a new equipment that will allow us to convert the film into air cushions. We have customers already interested in that new material. We are really looking forward putting that into the marketplace and seeing the good results. We believe it's gonna be a great success. Thank you all. Thank you, Carbios, for your support.
Let's continue the flow with Liz and Alain.
All along the PET project, we developed a large number of expertise to optimize enzymes for the degradation of plastics. We are quite convinced that all the tools we have developed will be very efficient to develop more efficiently and faster enzymes to new polymers. We are able to screen large libraries of enzyme, to produce them and to characterize these enzymes. Molecular modeling is a fantastic tool to better understand the relation between the structure of an enzyme and its function, and to propose target for enzyme evolution. We develop very efficient enzyme screening using robotic platform, more recently, microfluidic is used to screen million of variants in only one days. Finally, biophysics and microscopic tools are very efficient to better understand how these kind of enzymes work to degrade plastic.
We create a great team of researchers, 7 PhD and 8 engineers and technicians, that are dedicated to enzyme evolution in Toulouse. We will now focus on a fantastic new development: use of microfluidics to enlarge our capacity to develop enzymes.
Droplet-based microfluidics is a powerful technology, allowing the miniaturization and the automation of vast numbers of reactions. Fluids with a volume in the picoliter range are handled in independent micro-reactors. The PET depolymerization is monitored in each droplet generated. This technology has allowed us to significantly improve our performance screening at a very high speed.
Thanks to our partnership with the Paul Pascal Research Center, well-known for its expertise in microfluidics, together, we have adapted this technology specifically to the enzymatic degradation of PET.
Microfluidics is already widely used in medical diagnostics to analyze biological samples. When Carbios approached us to use it for new industrial applications, that was a first. We are honored to partner with Carbios in developing new methods using the power of microfluidics for such an important environmental cause, reducing plastic pollution.
Since introducing microfluidics in our screening process over 1 year ago, we are now able to analyze millions of enzymes in just 1 day. This would have taken years beforehand, and thus, we have greatly reduced the time between the research phase and the production of our proprietary enzymes.
In the search for the most efficient enzyme, a first screening of millions of enzymes is performed using microfluidics at our partner laboratory at the Paul Pascal Research Center in Bordeaux. A second screening, this time of thousands of enzymes, is carried out on robotic platforms in partnership with Toulouse Biotechnology Institute and Toulouse White Biotechnology. Five sequences are sent to Novozymes in Denmark for production. The selected enzymes enter the scale-up process in Clermont-Ferrand, from laboratory to pilot, and finally, demonstration unit.
Using microfluidics has enabled us to optimize the enzyme presented in the scientific journal, Nature, in 2020, and it is this optimized enzyme that will be used in our first industrial reference unit.
Currently used for the PET depolymerization process, microfluidics could be developed and adapted for other types of plastic, therefore accelerating the transition to a circular economy of plastic.
Using all this new technology, what could be the next project for Carbios? Here, we represented on this graph the different petrol-based polymers in function of their market value and of enzymatic readiness. We recently published in the prestigious Chemical Reviews, an exhaustive study related to enzymatic degradation of all type of plastics and polymers. Thanks to this study, we assume that polyamide could be the next market to focus for Carbios because of its enzymatic readiness. We've already start a collaboration program with Toulouse Biotechnology Institute to develop and optimize enzyme-degrading polyamide. Regarding polyolefins, polypropylene and polyethylene, they are a huge market, but with time to market that will be in the midterm.
For this, we also already started a collaboration with the BBF lab in Marseille to start to discover some biodiversity that will be able to degrade these polyolefins. Now, Gilles Baudin from L'Oréal will present the needs of innovation.
We are lacking PCR in polyolefin. If you were able to provide us some technologies, science, solutions, with enzyme, for instance, to make recycled polyolefin, we would be very agree, and for sure, we would not be alone. Thanks to Carbios, we have many hopes in PET. You understand that we need a wider range of plastic materials for our product. If we were able to be as brilliant in PE and PP as you are in PET, it would be well, nirvana.
Polyamide could be the new project for Carbios. It's a big market, around $30 billion, and a growing market. We all know the polyamide textile, but it's also used in automotive, electronics, and packaging application in the form of fibers or resins. Most importantly, there is a lack of recycling technology of polyamide, so there is a high market need for new recycling capabilities of these polymers. Now, I give the floor to Pascal Bricout, Chief Financing and Strategy Officer of Carbios.
Hello, I'm Pascal Bricout, in charge of strategy and finance. To start with the strategic and finance part, let's have a look on our business model and how we can summarize and describe it. Summarize, as Frédéric mentioned to you, we have the first part on the left-hand side, all about licensing our technology. We want to be CapEx lean and license our technology, which is made of enzyme and a process. Signing contract will generate for Carbios upfront payments. One shot is fixed cost and it generate down the world, down the road, some recurring revenues. This is the next two bubbles. The next two bubbles are recurring revenue generated from the licensing contract that we sign with industrial. Industrial, they will invest, build, and operate plants.
To make this monomer form of technology, they will need enzyme that they will source from Novozymes, our key partner. We will share margin for Novozymes, from Novozymes, that they will sell to the licensee plant. After, we are going to receive royalties from the P&L of the licensee to reflect the valorization of the Carbios technology offer they will pass on to the market. You understand at this point that the bubble size are proportional to the magnitude of the revenue we do expect from this business model. One thing which is important is the Novozymes strategic partnership is key for Carbios, because not only we provide margin, but we sign in June 2023, a key contract with them, strategic contract, long-term, and mutually exclusive.
It give us some barrier to entry in this market and also a capacity for licensee to be supplied on the global scale for large volumes. From this business model, what could be Carbios' vision for the next 5 - 10 years horizon? Market first. As Stéphane illustrate in his presentation, we do expect, and the market expect, that this market will grow by hair, four times bigger, even seven times bigger. In this growing market, Carbios' licensing activity will generate a global footprint of market share ranging from 4%-8%, a single digit number by 2030. Five years beyond, down the road, we do expect to be a double-digit number between 8%-12%. From this market penetration, Carbios will generate revenues and margin. First stream is licensing.
Based on our experience, we do know that market prices will give us a fee up front, one shot, in a range of EUR 100 per ton or EUR 200 per ton installed. The big chunk will come from recurring revenues, both from the enzyme and the use of licensee of our technology to pass on the market a very high proposition value. we estimate that the floor for that for that stream is around EUR 250 per tons, proportional to the production. Last, if we look at the cost side, we estimate the CAGR to 2035 will reflect our business model. First stream is RDI. We are, and we will remain, a tech company that will support strongly RDI activity. That's why we do expect a double-digit increase year-on-year, between 15%-20%.
This is to maintain and improve our existing PET enzyme applications, but also to develop new polymer activities through polyamide and polyolefin, like polypropylene and polyethylene. We also have to support the licensing activity. We need to get organized to have a global, at scale, sales organization worldwide. Frédéric is the cornerstone of that organization, and we do expect year-over-year to increase this cost by 8%-10% to support our business development. Let's look what could be the licensee point of view. "What's in it for me?" he would say. I will answer in three things: high return and quick. Number 1 is your plant will be cash positive in less than one year after commissioning. Second, your payback will be lower than seven years, starting when you start to invest in a plant.
Last but not least, I will tell him that your internal return rate will be over the 20% mark. Thank you very much.
Before we conclude on key milestones to come and key takeaways, I would like, Pascal, to tell us about the financing needs for Carbios.
Thank you, Emmanuel. First, on these financing needs, we need to recall that, as Emmanuel tell us, that the CapEx, it has to be funded first, the EUR 230 million for the Longlaville project. The EUR 230 million will be also in addition, we need to support the R&D effort for the improvement on the PET enzyme, but also to develop enzyme beyond PET in polyamide and polypropylene and polyethylene. This is the mainstream of the cost, also we have to support the licensing effort, the commercial effort, to reach our volume ambition in the Frédéric organization. These two costs will be in addition to the EUR 230 million spending we have to fund.
Today, if you look at the source of financial resource we have, we just communicate on EUR 160 million in total new funds coming from the state, from Indorama, and we have also EUR 86 million cash position end of April. For sure, we need to find solution to be self-sufficient for the time we need to cover, to be cash positive in 2025. We are studying all the best options and the timeline, but in any case, if we go for a solution on equity side, it has to be and it will be shareholder friendly. Emmanuel?
Let's look at the upcoming milestones. We have several key milestones to come in the coming few years. Let's start by 2023. Very soon, we will open the textile pretreatment line that we are installing right now in Clermont-Ferrand, in our demonstration plant, to allow us to demonstrate our capability of our technology to depolymerize textile. We will also start the construction of the Longlaville plant before end of this year. We expect the permitting to be there after this summer. We have also some key milestones in our international development. We are looking very actively at North America, having already some contacts and prospects for North America.
On the new R&D side, in 2023, we expect to patent some new enzymes on new polymers. In term of ESG, we will already achieve over 60% of independent board members in 2023. Next year, many things will happen again. We target to sign our first PET bio-recycling license in 2024. We will actively look at Asia to develop our technology in Asia. We have already started some contacts and prospects, and we expect to early 2024, make our first sales of PLA in North America. The first license revenues will come in 2024, the upfront fees that we have mentioned earlier.
2025, we expect to commission the plant in 2025, and also do some continuous progress in term of certification with a major CSR certification in 2025. Last but not least, beyond that, we will start generate significant revenue and target operational cash positive by 2027. What do we want to have as you to remind as key takeaways? We are on a fast-booming market. The advanced recycling will have the fastest growth in the rPET market, and as we said, it's gonna be a market which grow between times 4 and times 7 by 2050. Conventional, traditional mechanical recycling technology will be limited by lack of feedstock, the scarcity of feedstock. We are the best positioned to lead the advanced recycling market with our unique solutions.
The unique plug-and-play solutions with the existing PET industry, the access to the most competitive feedstock sourcing... the most circular solution, a very high standard LCA, including in term of CO2 emissions. The quality of our products, which is going to be virgin-like, and a high potential for price premium across industries, with a significant in price, impact on retail price. With an insignificant impact on retail price for the consumer, sorry. What are our strengths? Technical readiness to license. We are starting to prospect. We have started the operations on licensing, high profitable and CapEx-lean model, and the R&D, which is already engaged, to expand Carbios beyond the PET and PLA on new polymers to expand our business base.
Now it's probably time for you to ask questions, and I will pass the floor to the questions and answers. The first question: You have figures for 2025 and 2035 PET before figures. What are the 2022 figures of all rPET productions? Today, we estimate that there is about 9% of rPET in the total of PET production, which is the very small figures, and with the regulation and brand commitments, we know that there will be a very strong acceleration by 2035. Second question: Do we have revenue from our pilot, from our demonstration plant in Clermont-Ferrand?
Yeah, I can take this one. Yes, we have revenues. We do have some partners in the consortium that pay a annual fee to be part of it, and we give them some samples to make some tests on their product live. In a way, we have revenues from this consortium. Modest, but we have.
Okay, we have a question on the CapEx cost forecast for 2035, takes into account the unique reference and Carbios. No.
No.
Our business vision so far is excluding the additional revenues we will have from the.
Yes
From the unit reference and from the PLA biodegradation solutions that we have developed with Carbios. Third question: You have the ability to double the capacity of the plant in Longlaville. Does it mean the plant could achieve 100K of PET treatment per year? If yes, at which timeframe? Yes, absolutely. That's the way we have imagined the plant with its original design, with the capability to double the plant size. Obviously, the timeframe will depend on other projects and the market needs, but there is absolutely, in the design, the capability to double, at some stage, the plant in term of capacity. On what assumptions have you built your business model? Maybe I will start with that one.
Our first license is basically our first JV. is we have confronted our vision on the business model with a JV to test its feasibility, and we have already started discussions and negotiations with prospects in licensing. With this market feedback, we are able now to be transparent on the business model and the market and the business assumptions, which are beyond.
The next question is: How do you expect to sign the first license? It's all about it. I mean, we have the technology ready to be sold. We are discussing with partners, the core targets, to make them invest in new plants and operate them. The business model that is around the first plant will be deployed on all core targets that Stefan and Frédéric mentioned in their presentation. First, PET producer, chemical industrials, also, you have waste management companies, so all around will be the same model.
A question on when do we expect the Carbios PLA business to start? As Martine Brisset said in our presentation, we are in the process of getting the food grade homologation in the U.S. in North America. We expect this PLA business to start by the end of 2023, beginning of 2024.
Mm-hmm.
In North America first, we have already started the same process in Europe. It will be a bit longer before we can be a food grade in Europe and start operation in Europe. Do we plan to operate other plants in addition to the one in Longlaville? Here, again, as we mentioned in our business model, our vision is to be as CapEx-lean as possible. We don't want to operate plants. We want to have one plant to generate our first revenue and be able to train the future licensees. The vision of Carbios is not to operate plants by itself, is to license its technology. We don't exclude that we might, in certain project, if needed, participate in term of CapEx.
Yes.
It will be on a case-by-case basis. Obviously, the main objective of Carbios is to be as CapEx-lean as possible. One of our competitor is seeing its factory generating 45% EBITDA margin. Will it be similar at Carbios? I will let you answer that one.
The answer is yes.
... how is going to be your licensing pipeline? How many prospects? What potential size in kiloton? As we explained in the presentation of Frédéric Alarcon, our licensing manager, we have already a very strong pipeline in term of prospects. We are talking to PET manufacturers, obviously, and the first one being Indorama. We are talking to waste management companies. We are talking to chemical groups. We are talking to brand owners and to sovereign state funds. We have various kind of prospects. Where are we in this pipeline? We have some advanced discussion with certain of them, but licensing, as explained by Frédéric, a licensing time is in the 12 - 18 months period. What would be the potential in term of kiloton?
Again, we want to refer to our market share target, which is a minimum of 4% of the total rPET market in 2030, and a minimum of 8% of this total rPET market in 2035.
Laurent, if your question is about numbers, if you look at the market projection that Stéphane illustrate in his presentation, you can apply this market share ambition to the volume we project, and you have an estimate of a range. Let me come back to the 45%, because I don't want to miss that point about EBITDA margin. For sure, if I'm saying yes for the factory in Longlaville, but you did understand that our licensing model is much higher. If you look at the value stream, that only reflects selling license and getting EUR 250 per tons on our main stream for the business plan. This stream is much higher than 45%. 45% is for the Longlaville plant, and the rest is much higher.
A question on the enzyme efficiency. As the enzyme efficiency keeps on improving, and it requires less kilo of enzyme to recycle a similar volume of PET waste, how will revenue from royalties evolve? Are these terms in contract foreseen to take into account in the model, is more efficient enzyme means higher price per kg? It's far too early. Obviously, our enzymes are keeping improving month by month, but there are several ways to get remunerated on this enzyme improvement. Could be in the cost of the enzyme, it could be in the royalty, or it could be simply in improving the profitability of the plant. The value sharing is not yet defined, and it's a bit too early to answer this question in details.
Yeah.
A question on the feedstocks for your plants. Textiles are cheaper than PET bottles, but is the conversion rate to rPET as good as will PET bottle feedstocks? This is a very good question, because PET bottles feedstock is getting very expensive and very and keeps growing over time. If we look at long-term trends, the trend of bottle feedstock is going up very significantly. Even so, in short term period, it could go down. We are trying to maneuver our feedstock portfolio to go on much cheaper feedstocks. I mentioned CITEO for France with food trays. It's one of the key elements. We are looking actively at food trays to generate a feedstock.
We also look at residues of mechanical recycling, like fines, which are the residues of the mechanical recyclers, which are not really exploitable by mechanical recyclers. We are starting to look actively, even more now that we are installing our textile pretreatment line in our demonstration plant on textile feedstocks, which are effectively much cheaper. The competitive advantage on feedstock is very significant and will probably grow over time as bottle gets more and more scarce from mechanical recyclers. What percent of Longlaville funded by grants and Indorama?
70%.
Indorama funding is under G.V. or Carbios?
70%.
The second part of the question, the funding of Indorama is in the GV. Indorama funding, whether it's equity or loan financing, is exclusively for the GV, not in Carbios. What is your plan to expand your licensing internationally? I think we mentioned that in the presentations. We have already started to look actively at other European countries and North America, and we are also starting to get contacts in Asia to expand our technology internationally. Basically, everywhere there is consumption of PET and plastics, everywhere the technology makes sense to be licensed. Do we target other industries in addition to packaging and textile? Yes, absolutely. We've been contacting and approached beyond packaging and beyond textile. We've been approached by luxury brands, which are very interested in our technology.
We've been approached by automotive industry, which is also very interested by our technology. Furniture, toys.
Basically, everywhere PET is used, which is in many applications and many industries, there is interest for the Carbios solutions, and we have contacts in other industries. I forgot to mention the healthcare industry, which is also interested in our technology. I think we have answered to most of the questions. I know you might have additional questions to come, and we will be very pleased with the team to continue to give you a very transparent picture on Carbios and to answer all of those questions. Please continue to send your questions, and we will make sure you get an answer. I really want to thank you for your support and for your attention in today's strategic update presentation. Thank you very much.
Thank you.