S2G BioChem Announces Build of Advanced BioRefinery in Sarnia, Ontario Funding Support Provided by B

Production of Xylitol to Begin in 2018

VANCOUVER, British Columbia – S2G BioChem (S2G), a developer of natural biotechnology conversion processes, announced today that it has started work on the company’s first standalone biorefinery demonstration plant that it intends to build in Sarnia, Ontario.

The commercial-scale facility will refine local, sustainable forestry and agricultural residues using S2G’s patented process to produce the lowest-cost and highest-value food ingredient xylitol available on the market today while co-producing value-add bioglycols for a new generation of consumer, industrial and packaging and products.

“This is a very exciting time for S2G BioChem as we begin to execute our growth strategy to generate revenues from the production of fossil-free, value-add products,” said Mark Kirby, President and CEO of S2G Biochem. “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 highyield facility throughout North America and the rest of the world. The support from Bioindustrial Innovation Canada is an important step in securing funding for the project.”

The biorefinery demonstration plant, projected to cost $20M, will be funded by S2G and a network of investors and partners, including previously announced support from food giant Mondelēz International, who shares the vision and value of this renewable energy project. Funding will be provided by Bioindustrial Innovation Canada’s (BIC) Commercialization of Sustainable Chemistry Innovation fund (COMM SCI), which acts as a hub for commercialization of sustainable chemistry and bio-based innovation. COMM SCI supports BIC's mission to provide critical strategic investment, advice and services to business developers of clean, green and sustainable technologies.

"Bioindustrial Innovation Canada is very excited about its COMM SCI project with S2G," says Sandy Marshall, Executive Director of BIC. "Their innovative chemical conversion brings a new era of biorefining to everyday products, and we look forward to working with S2G to execute their business plan and support the development of their demonstration plant in Sarnia."

The S2G facility is considered a major advance in biorefinery development in Canada. It will have the capacity to produce over 2,000 MT/year of high-value xylitol and coproducts utilizing a range of feedstocks from forestry and agricultural residues. Basic engineering for the facility is underway and construction is expected to begin in 2018. The build-out and operation of the facility is projected to create 13 permanent jobs with more required during construction and testing.

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. Xylitol is a natural, low-calorie sweetener, offering high sweetness, excellent flavour, oral health benefits and 1/5 the glycemic index of table sugar, enabling healthier snacks and food products. 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.

- About S2G -

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.

- About Bioindustrial Innovation Canada (BIC) -

Bioindustrial Innovation Canada (BIC) is a nationally focused not-for-profit organization based in Sarnia, Ontario. The Centre for Commercialization of Sustainable Chemistry Innovation (COMM SCI) acts as a hub for the commercialization of sustainable chemistry and bio-based innovation, providing businesses and technical support to participating small- and medium-sized enterprises (SMEs) in southern Ontario. COMM SCI was established with a $12-million contribution from the Federal Economic Development Agency for Southern Ontario’s (FedDev Ontario) Investing in Regional Diversification initiative and additional support from the Government of Ontario Ministry of Research, Innovation and Science. Bioindustrial Innovation Canada creates jobs and economic value sustainably for Canada. We provide critical strategic investment, advice and services to business developers of clean, green and sustainable technologies. Our expertise in commercialization builds a stronger Canada. For more information, visit http://www.bincanada.ca/


- S2G BioChem -

Business Inquiries: Jeff Plato | Tel: 1.604.259-9820 | [email protected]

Media Inquiries: Debby Harris | Tel: 1.604.980-4333 | [email protected]

Investment Inquiries: Himanshu Kamboj | Tel: 1.604.259.9839 | [email protected]

- Bioindustrial Innovation Canada (BIC) -

Media Inquiries: Julia Struyf | Tel: 226.778.0020. Ext. 249 | [email protected]

Business Inquiries: Sandy Marshall | Tel: 226.778.0020. Ext. 237 | [email protected]