S2G BioChem (S2G), a developer of natural biotechnology conversion processes, announced today 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 S2G’s 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.
“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,” said Mark Kirby, President and CEO of S2G Biochem. “Locating this new biorefinery in Canada is important as its high efficiency and use of sustainable feedstocks will reduce greenhouse gas 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 Innovations Canada is an important step in securing funding for the project.”
The biorefinery demonstration plant, projected to cost $20M, will be funded by S2G and a network of investors and partners, including previously announced support from food giant Mondelēz International, who shares the vision and value of this renewable energy project. Funding will be provided by Bioindustrial Innovation Canada’s (BIC) Commercialization of Sustainable Chemistry Innovation fund (COMM SCI), which acts as a hub for 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,” says Sandy Marshall, Executive Director of BIC. “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.”
The S2G facility is considered a major advance in biorefinery development in Canada. It will have the capacity to produce over 2,000 MT/year 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.
S2G’s conversion technology uses sustainably-sourced renewable plant materials to concurrently produce two bio-based products – xylitol and bioglycols. The ability to co-produce these products results in the lowest production costs for xylitol and bioglycols available today. 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 countless everyday products such as packaging, lotions, liquid detergents, deicing fluids and antifreeze.