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The major t-shirt company, Hanesbrands Inc is pursuing additional testing of hemp-based fiber for mass production, reports reports GeenBiz.com. The company first partnered with Naturally Advanced Technologies (NAT) in November 2008 to conduct preliminary tests of hemp-based fiber in their t-shirt production. Preliminary tests involved determining whether NAT’s hemp-based fiber could be spun on conventional equipment.

When preliminary tests were successful, Hanebrand moved on to test a t-shirt that was 20% hemp, 80% cotton. Now, Hanesbrands has been sufficiently satisfied with the results that they have ordered another 10,000 pounds to conduct additional testing.

So far, Hanebrands test have shown that the NAT’s hemp-based fiber hold dye better and shrink less than conventional cotton blends. So even though NAT’s fiber is more expensive than conventional cotton, Hanesbrands may be able to recoup those costs in the manufacturing process.

Traditionally, hemp produces a stronger, but coarser and rougher fabric than cotton does. NAT’s hemp-based Crailar fabric, however, offers the “same warmth and feel of organic cotton, but with characteristics, such as tensile strength, that organic cotton simply can never achieve.”

The environmental benefits of such a fabric being displacing 20-50% of the cotton used in clothing production would be significant. While cotton takes up only 3% of arable land, it accounts for 26% of all pesticides used in farming, and producing one pound of cotton can also require up to 100 gallons of water.

Hemp crops, on the other hand, requires no pesticides and can often subsists of off normal rainfall in most climates. So by displacing cotton as a conventional fabric textile, hemp can both help conserve water and reduce the use of harmful chemicals that leach into our water table. Indeed, it’s promising to see a brand as large has Hanes testing the plant for its potential as a textile for mass production.

The company Naturally Advanced Technology has been on quite a roll lately. They successfully conducted some bulk commercial hemp trials that have already lead to a partnership with Hanes, and the scientists who made those trials a success then won an award for figuring out how to alter hemp fibers so that they could be processed on cotton machinery (it’s called Crailar fiber).

The breakthrough is a big deal because this way, no new machinery needs to be invented and then sold to fabric manufacturers. It will pretty much make processing hemp affordable which, in turn, will make hemp products affordable which, in turn, will fuel hemp industry growth. That’s important because the sooner that hemp can replace cotton, the sooner we can depleting our soil and water supplied just to put clothes on our back.

In any case, here is a clip of that scientist, Dr. Wing Sung, explaining how its done.

Last week, we reported how Naturally Advanced Technologies (with Hanes) conclude the bulk commercial hemp trials they had jointly undertaken earlier in the year. The result was that NAT’s Crailar hemp fiber was successfully used on cotton machinery, making it a viable substitute to cotton (one of the most destructive crops there is).

Well it now seems that one of the researchers involved in the project was awarded Clean Technology Innovation Award from the Ottawa Centre for Research and Innovation (OCRI). Here’s the press release with all the details:

PORTLAND, Oregon, November 24, 2008– Naturally Advanced Technologies Inc. (NAT, OTCBB: NADVF, TSXV: NAT), reported Dr. Wing Sung, BSc, MSc, PhD, Principal Research Officer, National Research Council of Canada (NRC), was awarded the inaugural Clean Technology Innovation Award from the Ottawa Centre for Research and Innovation (OCRI) on November 18th for his work with NAT developing CRAILAR®, its new organic fiber technology that creates an environmentally friendly alternative to cotton, and for his work reducing toxic effluent in the production of paper and textiles.

Dr. Sung said, “I am grateful for the support, vision and determined attitude of our collaborator NAT. In the last two years, we developed the organic enzyme bath process called CRAILAR that transforms hemp into fiber using conventional cotton equipment with no modifications. We are very excited the project is now moving to the commercialization stage. As announced on Nov. 17th, CRAILAR’s advanced technology produced successful spinning and knitting trials of hemp blend yarns and fabric for Hanesbrands Inc. The ground breaking results pave the way for hemp to enter mainstream apparel production using traditional cotton knitting systems and for commercialization of CRAILAR as a sustainable alternative to organic cotton.”

“Dr. Sung and the NRC share NAT’s commitment to the development of cleantech as both good stewardship and an obligation to the future generations,” said Ken Barker, CEO of NAT. “His brilliant study of proteins and enzymes has been pivotal in developing CRAILAR, an alternative to cotton that will lead to minimizing the apparel industry’s environmental footprint. By producing hemp fibers that are stronger, longer lasting, warmer and more absorbent than cotton, but just as soft and bright, CRAILAR’s disruptive technology positions NAT and the NRC to contribute a viable solution for the rapidly growing global renewable bio-fiber industry.”

The award, the latest of several in the last 10 years, was based on Dr. Sung’s leadership and promotion of the life sciences industry for over 10 years, his collaboration with the industry on a national scale, and his strong research record that is supported by 24 patents issued, including 6 in the US.

Dr. Sung is a Principal Research Officer at the Institute for Biological Sciences, National Research Council of Canada, Ottawa, with research interests in protein engineering of industrial enzymes, bio-products and natural fiber. His current research involves protein engineering and application of glycosidase enzymes for the extraction of plant fibers for textile and bio-composite materials.

Dr. Sung is the researcher behind four generations of engineered xylanases for the production of bleached pulp, in partnership with Iogen Corporation of Ottawa. Iogen develops, manufactures and markets industrial enzymes. Sung’s xylanase technology processes two million tons of pulp in Canada and USA annually, resulting in a net saving of between $500,000 – $1,000,000/year per facility. Between 1997 and 2007, this technology was responsible for a cumulative reduction of 100,000 tons of undesirable organochloride by-products by reducing the amount of chlorine bleach required in the production of 25 million tons of bleached pulp.

About Ottawa Centre for Research and Innovation
The Ottawa Centre for Research and Innovation (OCRI) is Ottawa’s leading member-based economic development corporation for fostering the advancement of the region’s globally competitive knowledge-based institutions and industries. OCRI delivers its economic development services through a unique partnership with the City of Ottawa, where the City and OCRI, through its members set the strategy and manage the programs that move Ottawa’s economy forward. OCRI is a non-profit, partnership organization that operates on an annual budget that comes from a variety of sources including: municipal, federal and provincial government; membership fees; professional development programs; and private sector contributions. http://www.ocri.ca/about/

About Naturally Advanced Technologies, Inc.
Naturally Advanced Technologies Inc. is committed to unlocking the potential of renewable and environmentally sustainable biomass resources from hemp and other bast fibers. NAT, through its wholly owned subsidiary Crailar Fiber Technologies Inc., is developing proprietary technologies for production of bast fibers, cellulose pulp, and their resulting by-products, in collaboration with Canada’s National Research Council and the Alberta Research Council. CRAILAR® technology offers cost-effective and environmentally sustainable processing and production of natural, bast fibers such as hemp and flax, resulting in increased performance characteristics for use in textile, industrial, energy, medical and composite material applications. The Company is also a provider of sustainable, environmentally friendly fibers and fabrics through its apparel division HTnaturals. Founded in 1998 in response to the growing demand for environmentally friendly, socially responsible clothing, NAT adheres to a “triple bottom line” philosophy, respecting the human rights of employees, the environmental impact of the Company’s operations and fiscal responsibility to its shareholders. www.naturallyadvanced.com

Forward Looking Statement Disclaimer
This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts that address commencement of trading of NAT’s Shares on the TSX-V, technology, and activities of NAT are forward-looking statements. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: any market interruptions that may delay commencement of trading of NAT’s Shares on the TSX-V, technological and operational challenges, needs for additional capital, changes in consumer preferences, market acceptance and technological changes, dependence on manufacturing and material supplies providers, international operations, competition, regulatory restrictions, and the loss of key employees. In addition, the Company’s business and operations are subject to the risks set forth in the Company’s most recent Form 10-KSB, Form 10-QSB and other SEC filings which are available through EDGAR at www.sec.gov. These are among the primary risks we foresee at the present time. The Company assumes no obligation to update the forward-looking statements.

Investor Contact:
Kirsten Chapman / Cathy Mattison
Lippert / Heilshorn & Associates
415.433.3777
ir@naturallyadvanced.com

Media Contact:
Summer Facchini
Black Lab Communications
503.830.5983
summer@blacklabcomm.com

We’d like to take this opportunity to congratulate both Dr. Sung and NAT on their accomplishment with hemp-based fiber. This kind of innovation may very well be the key to finding a much more renewable alternative to cotton, a plant that we all rely on quite a bit.

The same company that recently concluded bulk hemp trials and offered their CEO stock option, has just reported their third quarter earnings. Naturally Advance Technologies (NAT) has reported that, although earnings are up from the second quarter, they are down from the third quarter one year ago. As Market Watch reports:

CEO Ken Barker said, “Our third quarter sales increased 13% compared to second quarter, but declined 10% compared to a year ago, somewhat reflecting the overall economic slowdown. While we believe this may temper short-term sales, we are confident our retail and corporate customers have a long-term interest in our natural fiber garments. This year, we added more retail customers to the distribution network and increased our corporate business, which grew nine-month revenue 21%, compared to the first nine months of 2007. We also increased gross margins to approximately 41% this quarter and 38% year-to-date, indicating continued sound supply chain and operational management.”

In October, the company was wrapping up bulk hemp commercialization trials for both apparel and paper products. It’s possible, the, that Barker’s optimism is rooted in the results of those trials — i.e. he knows something that we don’t know. If through those trials NAT has found a way to cut the costs of hemp processing and pass those savings on to the consumer, it is all that much more likely that NAT will persist through this economic climate where pricier items such as those made from hemp are not expected to sell as well.

A few days ago, we post about how a company called Naturally Advanced Technologies (NAT) was conducting industrial hemp trials on the bulk commercialization of hemp. The point of the trials is to determine the best ways to bring their patented CRAILAR® Organic Fiber into the apparel and pulp & paper markets.

Well, to reward theri CEO, Kenneth C. Barker, for setting up the partnerships necessary to get these trials underway, NAT is now offering Barker stock options. As the press release reports:

PORTLAND, OR, Oct 23, 2008 /PRNewswire-FirstCall via COMTEX/ — Naturally Advanced Technologies Inc. (NADVF), a pioneer in commercializing the use of bast fibers including industrial hemp for use in casual apparel, performance yarns, industrial filters and absorbent pulp and paper products, granted a stock option to purchase up to 500,000 shares in the capital of NAT at an exercise price of US$1.45 per share to Kenneth C. Barker, NAT’s Chief Executive Officer. Press release notice of this grant falls under standard compliance requirements of the TSX Venture Exchange.

Miljenko Horvat, Chairman of the board, stated, “We have an extremely talented management team and it is our policy to employ stock options as incentive. This year Ken has led the team in efforts that culminated in two significant milestones: CRAILAR(R) trials for Organic Fibers with a leading U.S. apparel brand and CRAILAR(R) trials for Advanced Materials with one of North America’s largest pulp and paper producers. We look forward to management driving to commercialization with the goal of establishing commercial partnerships.”

The stock option is dated October 14, 2008 and is subject to an 18 month vesting schedule under the terms and conditions of NAT’s existing fixed share option plan. The options carry a three year term and expire on October 14, 2011.

What this means is that, until October 14, 2011, Barker will be able to purchase as many as 500,000 stocks in NAT for only $1.45 USD each. Although stock in NAT is currently only worth $1.45 USD per share, it can go up, and if it does, Barker won’t have to pay more than $1.45 USD a share. So if NAT stock rises to $3.00 a share, Barker can buy as many as half a million shares for only $1.45, and then turn around a sell those share and more than double his money.

All in all, Barker has quite the incentive to keep up his seemingly good work at NAT, and continue to find ways to bring industrial hemp products to market. It will be interesting, then, when the NAT trials conclude in a few weeks, and we start to get an idea of just how much potential NAT’s hemp-based products have in a bulk commercial market (not to mention how much of a rich man Barker stands to become).

A company called Naturally Advanced Technologies (NAT) has been conducting bulk commercialization trials. The aim of these trials is to determine the potential for mass commercial use of industrial hemp, and the trials are expected to conclude in November. As the press release explains:

Naturally Advanced Technologies Inc., a pioneer in commercializing the use of bast fibers including industrial hemp for use in casual apparel, performance yarns, industrial filters and absorbent pulp and paper products, is conducting bulk commercialization trials with a leading U.S. apparel brand, and one of North America’s largest pulp and paper producers.

The results of these tests are expected to determine the next steps to bring its CRAILAR® Organic Fiber and Advanced Materials technology to market and are expected to be announced by the end of November.

“These trials are a significant milestone in our long-term strategy to commercialize the patented CRAILAR Technology Platform, which we developed in partnership with the National Research Council of Canada and the Alberta Research Council.”

“We are very excited to reach the final stages of the trials and look forward to discussing the results and our preliminary plans to apply this technology on a large commercial scale,” said Ken Barker, CEO of Naturally Advanced Technologies.

CRAILAR technology capitalizes on the superior natural properties of industrial hemp, such as greater tensile strength, thermo regulation properties, anti-microbial, and abrasion resistance.

If NAT can truly process hemp in a sustainable way, this could mean great things for both the hemp industry and the environment. After all, one of the things holding back the hemp industry is the lack of technology to process it en masse. Basically, hemp technology pretty much stopped being developed after the Marijuana Tax Act was passed in 1937. A new development that could springboard hemp production into mainstream commercial use at a rate that can meet modern market demands for textiles, then, could be an event of historical import. Of course, we’ll just have to wait an see.

Check out the original press release here.