SunOpta BioProcess Signs Contract with Major Ethanol Producer in China

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.

22 Jan 2010 --- SunOpta Inc., announced that SunOpta BioProcess Inc. (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 is 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, which was 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.”