Fortress Secures Federal, Quebec Support for Xylitol Demonstration Project
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Fortress Global Enterprises Inc., Vancouver, B.C., Canada, this week announced that the governments of Canada and Quebec have committed up to $17.4 million in investments, grants, and loans to a new Fortress bioproducts subsidiary to support the construction of a $33 million xylitol demonstration plant planned for Fortress' dissolving pulp mill in Thurso, Quebec. The project is being developed by the newly created Fortress Advanced Bioproducts division, which was established to commercialize proprietary technology for the sustainable production of xylitol and other bioproducts.
"Demonstrating xylitol production builds on the company's Hemicellulose Project," stated Chad Wasilenkoff, president and CEO of Fortress, "which has the goal of producing high value-added by-products from the hydrolysate separated from the liquor produced at the Fortress Specialty Cellulose mill. We expect this to increase production, improve efficiency, and create additional sources of revenue and margin for our dissolving pulp mill and our new bioproducts division."
The Board of Directors of Sustainable Development Technology Canada (SDTC) has approved, subject to definitive documentation, $10.4 million of funding for the xylitol project. SDTC helps Canadian entrepreneurs accelerate the development and deployment of globally competitive clean technology solutions. In addition, the Government of Quebec has agreed in principle to make a $4.99 million equity investment and a $2 million contingency loan through Investissement Québec (IQ) for a minority interest in Fortress Xylitol Inc., a FortressAB subsidiary that will implement the xylitol project. At closing, Fortress will make a matching $5.01 million equity investment and $2 million contingency loan for the project. The remaining funding required to finance the project is expected to be provided by other government sources and stakeholders, which will be announced in due course when commitments are received.
"We are extremely grateful for SDTC's continued support and confidence in our proposed xylitol project and look forward to our partnership with IQ," stated Mark Kirby, president of Fortress AB. "These contributions are key pieces of the $33 million of funding required. Preparatory work is underway to meet the scheduled 2020 startup date, including Front End Engineering Design (FEED) and equipment specification for ordering long lead items. Once completed, the project will demonstrate how our proprietary technology produces low-cost xylitol with a significant reduction in greenhouse gas and other polluting emissions."
FortressAB is commercializing its technology to convert hemicellulose sugars rinsed from wood chips into various biomaterials, with the primary product being xylitol, a low-calorie sweetener. Its process is expected to transform the FSC dissolving pulp mill into a "biorefinery" and help shift the industrial chemical industry from its traditional dependence on fossil fuels to a sustainable future based on renewable organic materials.FortressAB's patent-pending process was developed at its pilot plant and lab facilities in Vancouver, B.C., with support from a major food products company, SDTC, the National Research Council, and the British Columbia government. FortressAB's technology aims to reduce the lifecycle GHG emissions and water consumption associated with traditional xylitol production, while also delivering a lower-cost product. The project is intended to demonstrate FortressAB's ability to scale its technology for commercial production, and validate the economic benefits of the process, positioning Fortress to lead full-scale commercial deployment at the FSC mill and other locations around the world.
Fortress Global Enterprises Inc. operates its xylitol business through Fortress Advanced Bioproducts Inc., which has laboratory and pilot plant facilities in Vancouver, BC, Canada and will also operate a xylitol demonstration plant through Fortress Xylitol Inc. Fortress operates its dissolving pulp business at the Fortress Specialty Cellulose Inc. mill located in Thurso, Quebec, Canada, which also operates in the renewable energy generation sector through its cogeneration facility.
Sustainable Development Technology Canada is a foundation created by the Government of Canada to advance clean technology innovation in Canada by funding and supporting small and medium-sized enterprises developing and demonstrating clean technology solutions.
Investissement Québec's mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The corporation offers businesses a full range of financial solutions, including loans, loan guarantees, and equity investments, to support companies at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment
Fortress Global Enterprises Inc., Vancouver, B.C., Canada, this week announced that the governments of Canada and Quebec have committed up to $17.4 million in investments, grants, and loans to a new Fortress bioproducts subsidiary to support the construction of a $33 million xylitol demonstration plant planned for Fortress' dissolving pulp mill in Thurso, Quebec. The project is being developed by the newly created Fortress Advanced Bioproducts division, which was established to commercialize proprietary technology for the sustainable production of xylitol and other bioproducts.
"Demonstrating xylitol production builds on the company's Hemicellulose Project," stated Chad Wasilenkoff, president and CEO of Fortress, "which has the goal of producing high value-added by-products from the hydrolysate separated from the liquor produced at the Fortress Specialty Cellulose mill. We expect this to increase production, improve efficiency, and create additional sources of revenue and margin for our dissolving pulp mill and our new bioproducts division."
The Board of Directors of Sustainable Development Technology Canada (SDTC) has approved, subject to definitive documentation, $10.4 million of funding for the xylitol project. SDTC helps Canadian entrepreneurs accelerate the development and deployment of globally competitive clean technology solutions. In addition, the Government of Quebec has agreed in principle to make a $4.99 million equity investment and a $2 million contingency loan through Investissement Québec (IQ) for a minority interest in Fortress Xylitol Inc., a FortressAB subsidiary that will implement the xylitol project. At closing, Fortress will make a matching $5.01 million equity investment and $2 million contingency loan for the project. The remaining funding required to finance the project is expected to be provided by other government sources and stakeholders, which will be announced in due course when commitments are received.
"We are extremely grateful for SDTC's continued support and confidence in our proposed xylitol project and look forward to our partnership with IQ," stated Mark Kirby, president of Fortress AB. "These contributions are key pieces of the $33 million of funding required. Preparatory work is underway to meet the scheduled 2020 startup date, including Front End Engineering Design (FEED) and equipment specification for ordering long lead items. Once completed, the project will demonstrate how our proprietary technology produces low-cost xylitol with a significant reduction in greenhouse gas and other polluting emissions."
FortressAB is commercializing its technology to convert hemicellulose sugars rinsed from wood chips into various biomaterials, with the primary product being xylitol, a low-calorie sweetener. Its process is expected to transform the FSC dissolving pulp mill into a "biorefinery" and help shift the industrial chemical industry from its traditional dependence on fossil fuels to a sustainable future based on renewable organic materials.FortressAB's patent-pending process was developed at its pilot plant and lab facilities in Vancouver, B.C., with support from a major food products company, SDTC, the National Research Council, and the British Columbia government. FortressAB's technology aims to reduce the lifecycle GHG emissions and water consumption associated with traditional xylitol production, while also delivering a lower-cost product. The project is intended to demonstrate FortressAB's ability to scale its technology for commercial production, and validate the economic benefits of the process, positioning Fortress to lead full-scale commercial deployment at the FSC mill and other locations around the world.
Fortress Global Enterprises Inc. operates its xylitol business through Fortress Advanced Bioproducts Inc., which has laboratory and pilot plant facilities in Vancouver, BC, Canada and will also operate a xylitol demonstration plant through Fortress Xylitol Inc. Fortress operates its dissolving pulp business at the Fortress Specialty Cellulose Inc. mill located in Thurso, Quebec, Canada, which also operates in the renewable energy generation sector through its cogeneration facility.
Sustainable Development Technology Canada is a foundation created by the Government of Canada to advance clean technology innovation in Canada by funding and supporting small and medium-sized enterprises developing and demonstrating clean technology solutions.
Investissement Québec's mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The corporation offers businesses a full range of financial solutions, including loans, loan guarantees, and equity investments, to support companies at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment
