SunOpta BioProcess (SBI), a subsidiary of Canadian natural food group SunOpta, has been awarded $5.5 million in funding to build an ethanol plant in Toronto. The plant will be an integrated cellulosic ethanol plant and co-located xylitol production facility. This follows the joint venture formed in 2008 between SBI and Xylitol Canada, with the goal of researching and co-developing a proprietary technology to produce xylitol using co-product streams from the production of cellulosic ethanol.
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SunOpta Announces That SunOpta BioProcess Inc. Awarded $5.5 Million (CAD) in Funding From Sustainable Development Technology Canada (SDTC)
SunOpta Inc. ("SunOpta" or "the Company") (Nasdaq:STKL) (TSX: SOY), today announced that its subsidiary, SunOpta BioProcess Inc. ("SBI"), has been awarded $5.5 million (CAD) in funding from Sustainable Development Technology Canada ("SDTC") to assist SBI and its partners to design, build and operate an integrated cellulosic ethanol plant and co-located xylitol production facility to be located in the Greater Toronto area.
Early in 2008 SBI formed a joint venture with Xylitol Canada with the goal of researching and co-developing a proprietary technology to produce xylitol using co-product streams from the production of cellulosic ethanol. These efforts resulted in the development of a viable xylitol production technology for use in tandem with cellulosic ethanol production. The next step in the development of this technology will provide the necessary technical and economic performance data to validate scale-up to commercial-scale production of both cellulosic ethanol and xylitol.
The fabrication of valuable co-products is expected to allow biofuel producers to increase their profitability and competitiveness. SBI and its partners have developed an integrated process that will produce both food grade xylitol -- a healthy sugar substitute -- and fuel grade cellulosic ethanol, therefore increasing the economic and environmental sustainability of cellulosic ethanol production. Using wood chips as feedstock, the technology is projected to decrease process water consumption by up to 75% compared to producing corn ethanol while retaining all of the life-cycle carbon benefits inherent to cellulosic ethanol.
The project involves the construction of a demonstration facility at a total cost of approximately $17.0 million (CAD), to be funded approximately 67% by the partners and 33% by the SDTC grant. The construction of the demonstration facility is not expected to have an impact on projected 2010 operating results. The facility is anticipated to produce up to a rated capacity of 620 tonnes of xylitol and two million litres of cellulosic ethanol per year.
Operation of the facility is expected to commence December 2010 with process validation complete by December 2011. Thereafter the facility may be operated for process optimization, continuous improvement and to test new innovations. Upon completion of the SDTC project, construction of a 10,000 metric tonne commercial xylitol facility in connection with a minimum 40 million litre cellulosic ethanol facility is contemplated to commence in September 2011, with first xylitol production from this facility expected by December 2012.
Murray Burke, President of SunOpta BioProcess commented, "SunOpta is delighted to receive support from SDTC to assist in building and operating a cellulosic ethanol and xylitol production facility that will demonstrate the commercial viability of the cellulosic ethanol and xylitol co-product technology. We believe this will be the first operation of its kind in the world. This is a valuable step leading to rapid deployment of our biorefinery technology, culminating in economically viable commercial facilities that are expected to advance production of sustainable bioproducts, stimulate local economies and meet significant environmental objectives through water conservation and GHG reduction."
Source: SunOpta
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