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(Sharecast News) - Agronomics said on Friday that its portfolio company Clean Food Group has secured regulatory approval for its precision-fermented 'CLEAN Oil 25' product to be used as a cosmetic ingredient in the UK, Europe and the US, opening the door to the global personal care market.
The AIM-traded investor said the clearance marked a major milestone in the commercialisation of Clean Food Group's proprietary CLEAN OilCell platform, which produces sustainable alternatives to conventional oil and fat ingredients.
It said CLEAN Oil 25 was developed in collaboration with THG Labs and Croda, and would now be used in skincare, haircare and other personal care products ahead of a planned entry into the food market.
"Palm oil is used in around 70% of cosmetic products, and it remains one of the leading drivers of tropical deforestation," said Agronomics executive chair Jim Mellon.
"For decades, the beauty industry has faced a difficult challenge, aware of the damage caused by palm oil, but unable to replace it due to its unique properties.
"Today, that changes. With this new regulatory approval, Clean Food Group is demonstrating the huge potential of biotech innovation and its ability to develop and scale a sustainable alternative that not only reduces environmental impact but also shortens and secures supply chains."
Clean Food Group chief executive Alex Neves said the approval was "a pivotal step forward in our mission to provide sustainable solutions for global supply chains," adding that it "gives brands the confidence to adopt CLEAN Oil 25 in their formulations, supporting efficacy and responsibility without compromise."
Agronomics said it had invested 1.6m in Clean Food Group to date, with the holding currently valued at 6.9m, representing around 4.8% of its last reported net asset value as at 30 June.
At the close on Friday, shares in Agronomics were up 1.47% at 6.9p.
Reporting by Josh White for Sharecast.com.
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