On Friday at the International Fuel Ethanol Workshop & Expo in Milwaukee, Wisconsin, SunOpta's BioProcess Group discussed developments in the cellulosic ethanol market in China. Today, the Company is pleased to announce that it has signed a contract to sell a cellulosic ethanol pilot demonstration facility, which is based on SunOpta's patented and proprietary biomass conversion technology, to China Resources Alcohol Corporation (CRAC) for research and development of cellulosic ethanol production at their facility in ZhaoDong City, Heilongjiang Province.

 

Based upon completion of final details, the companies anticipate that this cellulosic ethanol research facility will start in late 2006. Terms of the sale were not disclosed. As part of the transaction, SunOpta and CRAC intend to enter into a joint development agreement between SunOpta, CRAC and Novozymes for the development of cellulosic ethanol in the People's Republic of China.

 

The Chinese central government recently announced a US $5.0 billion capital investment over the next 10 years in ethanol capacity expansion with a focus on cellulosic ethanol.   

 

The SunOpta Bioprocess Group has been designing, building and optimizing biomass conversion plants for over thirty years. End products include cellulosic ethanol, cellulosic butanol, xylitol and dietary fibre for human consumption.

 

Raw materials include wheat straw, corn stover, grasses, oat hulls, wood chips and sugarcane bagasse.

 

CRAC is the second largest ethanol producer in China. CRAC's goal is to install 5,000 tonnes per year (1.7 million US gallons) of cellulosic ethanol capacity by the end of 2007 and 1,000,000 tonnes per year (330 million US gallons) by 2012 utilizing multiple lines of SunOpta's proprietary process technology and equipment.  

 

Novozymes is a world leader in the production ofenzymes necessary to convert corn or agricultural waste, such as corn stover, wheat straw and wood chips, into fuel ethanol for automobiles.

 

The Company has been instrumental in revolutionising the production of transportation fuel through application of its enzyme technology for ethanol, both based on corn starch and agricultural residues such as corn stover.   

 

Murray Burke, Vice President and General Manager of SunOpta's BioProcess Group, commented that, "We are very pleased to partner with CRAC and Novozymes on this major roll out of cellulosic ethanol production in the People's Republic of China. This is a confirmation that SunOpta is a world leader inthe development of cellulosic ethanol technology."