Brampton Company Signs Contract With Major Ethanol Producer in China

Brampton headquartered SunOpta Inc. has announced that its' subsidiary SunOpta BioProcess(SBI) has been awarded a contract to supply a major ethanol producer in China with the Company’s proprietary fiber preparation and pretreatment equipment for use in the production of cellulosic ethanol.

The Chinese client is one of the largest operators in the corn biochemical processing and new energy sectors in China and owned by a consortium of leading Chinese companies including one of the largest petrochemical companies in China. SBI’s equipment will be installed in a planned cellulosic ethanol demonstration plant scheduled for completion in late 2010.  The plant will be located adjacent to an existing starch-to-ethanol facility and will utilize local corn stover as feedstock. The development of cellulosic ethanol alternatives has taken a high profile in China as the Central Government has discouraged further development of corn to ethanol plants due to environmental and food supply issues. 

Under the terms of the contract, obtained with the assistance of Pacitec, Inc., SBI’s exclusive agent in China, the Company will realize revenues of approximately $6.5 million from supply of equipment and a technology license as well as certain design and engineering services. 

Murray Burke, President of SBI, commented, “We are extremely pleased that one of the largest fuel alcohol companies in China has selected SBI as its supplier of choice for fiber preparation and pretreatment as it expands its capabilities to include fuel alcohol produced from cellulosic biomass. We look forward to working with our customer to help make the demonstration plant an unqualified success. As SBI’s second major project in China, it represents another important step forward as SBI establishes its business in this very important market.”

This announcement follows another by SunOpta and SBI who earlier this month were awarded $5.5 million in funding from Sustainable Development Technology Canada (SDTC) to design, build and operate an integrated cellulosic ethanol plant and co-located xylitol production facility.

Commenting on that announcement Burke said, "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."

SunOpta Inc., located on Bovaird Dr. West in Brampton, is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic foods and natural health products markets. The Company has three business units: the SunOpta Food Group, Opta Minerals Inc. (66.5% owned by SunOpta), and SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.

For more information visit www.sunopta.com.