SunOpta BioProcess (SBI), a subsidiary of Canadian natural food group SunOpta, has been awarded C$5.5m (US$5.3m) in funding to build an ethanol plant in Toronto.
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The funding from Sustainable Development Technology Canada (SDTC) will assist SBI and its partners to build and operate an “integrated cellulosic” ethanol plant and a xylitol production facility located in Toronto.
SBI formed a venture with Xylitol Canada in 2008 with the goal of developing a proprietary technology to produce xylitol using co-product streams from the production of cellulosic ethanol.
The project involves the construction of a demonstration facility at a cost of around C$17m, two-thirds of which will be funded by the venture and a third through the grant.
The construction of the demonstration facility is not expected to have an impact on projected 2010 operating results, SunOpta said.
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By GlobalDataThe facility is anticipated to produce up to 620 tonnes of xylitol and 2m litres of cellulosic ethanol per year.
Operation of the facility is expected to start in December with process validation completed by December 2011.
Murray Burke, president of SunOpta BioProcess, said: “SunOpta is delighted to receive support from SDTC to assist in building and operating a cellulosic ethanol and xylitol production facility. We believe this will be the first operation of its kind in the world.”
