SunOpta Signs Contracts to Apply Steam Explosion Technology to the Production of Ethanol
TORONTO--May 18, 2004--SunOpta Inc. (SunOpta)
(Nasdaq:STKL) (TSX:SOY) today announced that it has signed a series of
contracts with Abengoa BioEnergy R&D of St. Louis, MO, a wholly owned
subsidiary of Abengoa SA of Seville, Spain, to apply steam explosion
technology to the processing of corn stover and wheat straw into fuel
ethanol. SunOpta's, Steam Explosion Division, will be responsible for
the design and equipment supply for the fiber preparation and
pretreatment. Abengoa is the largest producer of ethanol in Europe and
the fifth largest in the U.S. Abengoa a 1.6 billion Euro revenue per
year company, carries on business in Europe, North and South America
and the Pacific Rim, and is based in Seville, Spain.
These contracts include a Technology Development Agreement, a
Research and Development Contract, the supply of testing equipment and
two Preliminary Engineering Contracts for production facilities to be
constructed in Nebraska, U.S. and Salamanca, Spain. The agricultural
residue will be pretreated through the steam explosion process in
order to produce a substrate that is suitable for ethanol production.
Once the preliminary engineering is completed by SunOpta, two
equipment contracts are expect to follow for the two above facilities,
with SunOpta supplying all of the pretreatment equipment including the
steam explosion system.
Abengoa BioEnergy R&D has put together a world class team of top
industry leaders to drive the cost of producing ethanol from
lignocellulosic biomass to below that of the existing cost of starch
to ethanol.
California requires the addition of 10% ethanol in all gasoline
fuels as of the beginning of January 2004, which is increasing the
demand for ethanol and for new ways to process materials not normally
used in the manufacturing of ethanol. The conversion of biomass to
road fuel will have a dramatic impact on the world wide reduction of
greenhouse gas emissions. President Bush has set a goal for U.S. usage
of ethanol from starch and biomass to double by year 2010.
SunOpta Inc. is an owner/operator of high-growth ethical
businesses, focusing on integrated business models in the natural and
organic food markets. For the last six consecutive years, SunOpta was
included in Profit magazine's 'Profit 100' list of the 100 fastest
growing companies in Canada. The company has three business units: the
SunOpta Food Group, which specializes in sourcing, processing and
distribution of natural and organic food products integrated from seed
through packaged products; the Opta Minerals Group, a producer,
distributor, and recycler of environmentally friendly industrial
materials; and the StakeTech Steam Explosion Group that engineers and
markets clean pulping systems using patented steam explosion
technology. Each of these business units has proprietary products and
services that give it a solid competitive advantage in its sector.
For further information, please contact:
SunOpta Inc.
Jeremy N. Kendall, Chairman & CEO
Steve Bromley, Executive Vice President & COO
John Dietrich, Vice President & CFO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
swiekenkamp@sunopta.com
Website: www.sunopta.com
Note: This news release may contain forward-looking information.
Actual future results may differ materially. The risks, uncertainties,
and other factors that could influence actual results are described in
the Company's annual report to shareholders and in SEC filings.
CONTACT: SunOpta Inc.
Jeremy N. Kendall, Steve Bromley,
John Dietrich, Susan Wiekenkamp,
Tel: 905-455-2528, ext 103
email: swiekenkamp@sunopta.com
SOURCE: SunOpta Inc.