COPENHAGEN, Aug. 16 (Xinhua) -- Industrial enzyme manufacturer Novozymes of Denmark said here Thursday that it has developed a fungus that can be used to produce from renewable sources bio-chemicals useful in the plastics and other industries.

The micro-organism will enable production of so-called bio-based malic acid, which will make possible production of plastic and other oil-derived products from renewable materials instead of mineral oil, the company said in a press statement.

The company's Executive Vice President Thomas Videbaek described the technology as "our first biochemical building block," adding that "bio-chemicals produced from renewable raw materials meet a global need for sustainable alternatives."

Malic acid, which occurs naturally in many fruits and vegetables, is already used as a flavor enhancer in the food and beverage industry. Its chemical derivatives can be used in plastic, polymer and resin products, including golf balls and printing inks.

Sustainable bio-chemical production uses renewable sources, such as corn starch and biomass from agricultural waste, that are converted into sugars, which in turn are made into chemical building blocks by specially-designed enzymes or microorganisms.

Novozymes said it is licensing out its new technology to help commercialize production of malic acid and its derivatives made from renewable raw materials.

It added it is "primarily developing the enzymes or microorganisms that enable production of bio-chemicals" in partnership with chemical and agricultural companies.

The company said the annual global market for malic acid is worth 130 million U.S. dollars, and is set to grow by 4 percent per year. The market for malic-acid derivates is valued at 2.8 billion dollars, and could grow by 3 percent per year, it added.

Citing market analysts, Novozymes added that bio-chemicals could account for 17 percent of the global chemical market by 2025. Enditem