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SunOpta to Build Cellulose Ethanol Plant

This Site:en.yinlu.net Source:en.yinlu.net Writer: Time:2007-11-21

NEW YORK (AP) -- SunOpta Inc. plans to construct a 10 million-gallon-per-year cellulosic ethanol plant in Minnesota with the Central Minnesota Ethanol Co-op, the company said Tuesday.

SunOpta has signed a letter of intent to complete a feasibility study for SunOpta and the co-op to jointly build, own and operate the plant, which will use local wood chips as raw material, rather than corn. The proposed operation is expected to be built next to CMEC's existing 21.5 million-gallon-per-year corn ethanol plant in Little Falls, Minn.

Rising corn costs and overexpansion have hurt the ethanol sector's profitability this year.

Plans call for eventual expansion of the new plant to over 50 million gallons per year. SunOpta did not disclose cost estimates.

SunOpta has developed a "steam explosion" process, which uses heat and steam to pre-treat cellulosic materials such as woodchips and break chemical bonds within the substance by adding water. Residual materials will serve as fuel for the two plants' power systems.

SunOpta shares rose 4 cents to $13.49 in morning trading.

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