WATERDOWN, ON — Sustainable Development Technology Canada (SDTC) has awarded a project led by SunOpta BioProcess Inc. up to $5.5 million in funding for the construction of a facility to demonstrate its integrated process that aims to produce both food grade xylitol — a sugar substitute — and fuel grade cellulosic ethanol.

"Next-generation biofuel technologies are generating even greater environmental benefits and are also providing new economic opportunities through innovative co-products," said the Honourable Lisa Raitt, Minister of Natural Resources. "The Government of Canada is pleased to support companies like SunOpta that are helping advance clean energy technology and provide a healthier environment for Canadians."

"The generation of valuable co-products advances the economic opportunity created by the production of biofuels," said SDTC President and CEO Vicky Sharpe. "Technologies like SunOpta's that have both environmental and economic benefits help Canada achieve its biofuels objectives and build a bio-based economic sector, adding value to the agriculture and forestry industries."

Using wood chips as feedstock, SunOpta's 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 proposed project involves the construction of a demonstration plant with a capacity to produce up to 620 tonnes of xylitol and two million litres of cellulosic ethanol per year.

"Successful commercialization of biofuel production technology relies upon capturing value from all of the major components in biomass feedstock. The SDTC funding will allow SunOpta BioProcess Inc. to demonstrate its integrated process technology to produce biofuels from cellulose, bioenergy from lignin, and xylitol, a natural alternative sweetener and value-added product produced from xylan," commented SunOpta BioProcess Inc. President Murray Burke. "We are excited about the prospects of the integrated biorefinery technology, and believe that this strategy will lead to rapid commercialization of economically and environmentally sustainable biofuel operations, with concomitant benefits for Canadian economic vitality, environmental sustainability and energy security."

The SDTC funding for SunOpta's project will be leveraged with funding from members of its consortium, including Xylitol Canada and Emerald Forest Sugars Inc.

For more on SunOpta, visit www.sunoptabioprocess.com. For more on other projects that received funding from SDTC this week, visit www.sdtc.ca.

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