SunOpta licenses its cellulosic ethanol tech to four plants

SunOpta of Toronto (NASDAQ: STKL) (TSX: SOY) today reported progress on four cellulosic ethanol projects which are or are to soon be operational using SunOpta’s patented technology and equipment to produce ethanol from cellulosic biomass including woodchips, corn stover, sugar cane bagasse and wheat straw.

China Resources Alcohol Corporation (CRAC) has announced its intention to construct sufficient cellulosic ethanol facilities to generate 330 million gallons of ethanol by 2012.

SunOpta provided its patented systems and technology to CRAC in September 2006, and the plant began production of ethanol from local corn stover in October 2006. The company believes this is the first cellulosic ethanol production facility operational in the People’s Republic of China. SunOpta says steps are currently being taken to scale its process up to full commercial levels for use in future plants in China.

China has committed $5 billion to cellulosic ethanol production and recently announced it would allow no further increase in ethanol production from starch (corn), due to the need for starch as food. China’s announcement illustrates the “food vs. fuel” issue, which SunOpta says continues to be a key driver for cellulosic ethanol worldwide.

Key components of SunOpta’s equipment and technology have recently been shipped to Spain for the start up of Abengoa Bioenergy R&D's wheat straw to ethanol facility located in Salamanca, Spain.

The project is expected to start up in the summer of 2007 and will be the first commercial production facility in the world producing ethanol from wheat straw, the company said. Abengoa is the largest producer of ethanol in Europe.

SunOpta also says its equipment and technology will be also used in a new Celunol facility being built in Jennings, Louisiana, to produce ethanol from sugarcane bagasse and wood. The facility is scheduled to start up in the summer of 2007.

And SunOpta recently announced the formation of a Joint Venture with GreenField Ethanol, Canada’s largest producer of ethanol (see GreenField and Sunopta cellulosic ethanol JV.) The two companies plan to build and jointly own and operate plants producing ethanol from wood chips.

The first plant is planned to produce 10 million gallons of ethanol per year, what the company calls the "widely-accepted threshold for commercial scale cellulosic ethanol production," and "will demonstrate the immediate commercial viability of cellulosic ethanol." No other details were provided.

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