S2G BioChem (S2G), has announced that it has started work on the company’s first standalone biorefinery demonstration plant that it intends to build in Sarnia, Ontario, Canada. Construction of the CA$ 20 million project, that will use S2G’s patented process to produce xylitol from C5 sugars, is estimated to begin in 2018.
Vancouver, Canada-based S2G BioChem (S2G), a developer of natural biotechnology conversion processes, has announced that it has started work on the company’s first standalone biorefinery demonstration plant that it intends to build in Sarnia, Ontario.
The commercial-scale facility will refine local, sustainable forestry and agricultural residues using its patented process to produce the lowest-cost and highest-value food ingredient xylitol available on the market today while co-producing value-add bioglycols for a new generation of consumer, industrial and packaging and products.
Xylitol is a natural, low-calorie sweetener, offering high sweetness, excellent flavour, oral health benefits and 1/5 the glycemic index of table sugar, enabling healthier snacks and food products. Bioglycols (EG & PG) are sustainable drop-in replacements for petrochemicals that can be used to make numerous everyday products such as packaging, lotions, liquid detergents, deicing fluids and antifreeze.
This is a very exciting time for S2G BioChem as we begin to execute our growth strategy to generate revenues from the production of fossil-free, value-add products. Locating this new biorefinery in Canada is important as its high efficiency and use of sustainable feedstocks will reduce greenhouse gas (GHG) and effluent emissions. We will bring increased revenue to local feedstock suppliers, and we will gain invaluable experience before replicating this high-yield facility throughout North America and the rest of the world. The support from Bioindustrial Innovation Canada is an important step in securing funding for the project, said Mark Kirby, President and CEO of S2G Biochem in a statement.
Multistakeholder funding
The biorefinery demonstration plant, projected to cost CA$20 million, will be funded by S2G and a network of investors and partners, including previously announced support from food giant Mondelēz International. Funding will be provided by Bioindustrial Innovation Canada’s (BIC) Commercialization of Sustainable Chemistry Innovation Fund (COMM SCI), which acts as a hub for the commercialization of sustainable chemistry and bio-based innovation, providing business and technical support to participating SMEs (Small and Medium Enterprises).
COMM SCI was established with support from the Federal Economic Development Agency of Southern Ontario’s Investing in Regional Diversification Initiative.
Bioindustrial Innovation Canada is very excited about its COMM SCI project with S2G. Their innovative chemical conversion brings a new era of biorefining to everyday products, and we look forward to working with S2G to execute their business plan and support the development of their demonstration plant in Sarnia, said Sandy Marshall, Executive Director of BIC.
The S2G facility is considered a major advance in biorefinery development in Canada. It will have the capacity to produce over 2 000 tonnes per annum of high-value xylitol and coproducts utilizing a range of feedstocks from forestry and agricultural residues. Basic engineering for the facility is underway and construction is expected to begin in 2018. The build-out and operation of the facility is projected to create 13 permanent jobs with more required during construction and testing.
