ASX-listed Papyrus Australia is advancing towards commercialisation of its proprietary banana fibre technology, positioning agricultural waste as a viable feedstock for paper, board and packaging applications – with its first multimillion-dollar contract already secured from the mining sector.
The technology, which is subject to multiple patents, transforms discarded banana plant material – including stems, stalks and leaves – into a strong, durable fibre suitable for a range of end uses. These include packaging formats, food containers, trays and moulded products, with the company also positioning the material as an alternative to expanded polystyrene.
Rather than entering the market solely as a manufacturer, Papyrus is pursuing a collaborative model, working with growers, converters and manufacturers to accelerate adoption of banana fibre materials across the packaging value chain.
The development comes against the backdrop of significant agricultural waste generation. Australia’s banana industry produces thousands of tonnes of organic waste annually, much of which decomposes in-field, contributing to methane emissions. Papyrus is targeting this waste stream as a circular economy opportunity, converting it into a value-added fibre resource.
Chaired by Al Jawhari, the company received a $250,000 matched grant under the Industry Growth Program to support early-stage commercialisation. The funding enabled the establishment of a rapid prototyping and R&D facility at The University of Adelaide, which Papyrus says will act as a hub for industry collaboration.
Papyrus Australia CEO Daniel Schmidt said the material’s performance characteristics and low-impact processing pathway make it relevant for multiple sectors.
“The durability and versatility of banana fibre, combined with the low-impact conversion of plantation waste into a valuable resource, make it an attractive innovation for food packaging, medical and other paper and board applications,” Schmidt said.
“If the business has access to banana plantation waste, we can support the development of a sustainable and profitable manufacturing venture.”
The company has already secured its first major commercial agreement, signing a $4.2 million deal with TBS Mining Solutions Pty Ltd, part of Aquirian Limited. Under the agreement, Papyrus will supply a biodegradable version of a plastic ‘collar keeper’ used in blast mining operations.
The contract, which runs for an initial 3.5-year term, establishes Papyrus as the exclusive global producer of the biodegradable Collar Keeper variant and provides a defined pathway to revenue.
Schmidt said the application demonstrates the fibre’s durability beyond traditional packaging uses.
“The biodegradable collar advances our mission to provide sustainable alternatives across a wide range of industries and highlights the versatility of banana plant fibre,” he said.
Papyrus is now in the process of establishing an Adelaide-based production facility, which will house its core processing technology and support scale-up. The site is expected to underpin the company’s transition from R&D to commercial production, supplying pulp for moulded products, paper and board applications.
As fibre-based alternatives continue to gain traction, Papyrus’s approach points to the growing role of agricultural residues as feedstock for next-generation packaging materials – particularly where circularity and emissions reduction are key drivers.
