Production of Sustainably-Sourced Food Ingredient Xylitol Expected to Begin in 2018
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 27, 2016) - S2G BioChem (S2G), a developer of natural biotechnology conversion processes, announced today that it has entered into a license and collaboration agreement with Mondelēz International (NASDAQ: MDLZ), a world leader in biscuits, chocolate, gum, candy and powdered beverages, to help commercialize a sustainably-sourced supply of the food ingredient xylitol using a proprietary co-production technology.
Under the agreement, S2G will receive financial support for project development of the first commercial production facility for sustainably-sourced xylitol and exclusive worldwide rights to the technology for its supply. Xylitol is valued as a food ingredient for its distinct flavour and beneficial properties, while containing only one-third the calories of a similar amount of table sugar.
"Today is a major leap forward for S2G and the bioeconomy in terms of meeting performance and cost targets for bioglycols and high-value speciality products such as xylitol," said Mark Kirby, President and CEO of S2G Biochem. "We are extremely excited about this continuing collaboration with Mondelēz International as we enter the next stage of our critical path to build a commercial production facility and provide an ongoing revenue stream for our investors."
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. 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.
"Our work with S2G reflects our focus on helping us drive extraordinary value through innovative products of the highest quality at competitive costs, as well as our efforts to protect the well-being of the planet and its people," said Shrijeet Desai, Director Global Sweeteners Procurement, Mondelēz International.
Following more than seven years of development and commercial-scale demonstration of S2G's patented chemical conversion processes, the company is now focused on securing investors and partners interested in participating in projects based on the technology, including suitable suppliers of raw materials.
"S2G's conversion process maximizes the value of challenging 'C5' sugars derived from wood and agriculture residues," said Jeff Plato, Director, Corporate and Business Development of S2G BioChem. "And we're excited to build new relationships with interested suppliers, those who want to join our growth strategy and make our products commercially available in North America and beyond."
S2G Biochem is a global-leading chemical conversion company revolutionizing the production of food ingredients and biochemicals by utilizing agricultural and forestry waste. As the only company in the world to co-produce a sustainable and cost-effective source of xylitol and value-added bioglycols, S2G is galvanizing a new era of biorefining for a wide variety of consumer and industrial products we use everyday. S2G's success is the result of over 20 years of design, engineering and biorefinery operation. For more information about S2G and its sustainable biorefinery process, visit www.s2gbiochem.com.