Vancouver start-up S2G Biochemicals Inc. has announced plans to build a $20 million biorefinery demonstration plant in Sarnia, Ontario.
The future commercial-scale facility will produce xylitol, a natural, low-calorie sweetener, by using refined local, sustainable forestry and agricultural residues.
The S2G site will also co-produce value add bio-glycols. Bio-glycols are an alternative to glycols, which are derived from oil and gas for making plastics, polyester and plastic water bottles. Glycols are a basic building block for a wide range of products.
S2G has been developing their patented natural biotechnology conversion process over the last 5 years, and the new S2G facility is considered a major advancement in biorefinery development in Canada.
The facility will have the capacity to produce over 2,000 MT per year of xylitol and co-products.
Construction for the facility is expected to begin in 2018. The operation of the facility will create 13 permanent jobs with more required during construction and testing.
“This is a very exciting time for S2G BioChem as we begin to execute our growth strategy to generate revenues from fossil-free, value-add products,” Mark Kirby, president and CEO of S2G Biochem, said in a press release.
“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 biorefinery plant will be funded by S2G and a network of investors and partners, including food giant Mondelēz International(NASDAQ:MDLZ).