S2G BioChem, Mondelēz to collaborate on new sweetener process

October 30, 2016 |

bd-ts-103116-s2g-smIn Canada, S2G BioChem has entered into a license and collaboration agreement with Mondelēz International — a 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.

Commercial-scale production of the sustainably-sourced food ingredient xylitol is expected to begin in 2018. Mondelēz owns billion-dollar brands such as Cadbury, Nabisco, Oreo, Trident and Dentyne.

Based on a successful multi-year co-development program, Mondelēz and S2G are now moving forward with the production of a commercial facility using its breakthrough technology for the “co-production” of xylitol production and bioglycols using second-generation residue feedstock.

The technology

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.

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.

The deal

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.

The rationale

S2G’s ability to provide a sustainable and cost-effective supply of xylitol was the driver behind this collaboration as it has historically been very expensive to produce. Xylitol’s primary use is as a food ingredient – a sweetener for gum and candy – but it also used in oral care products due to its health benefits (including a low glycemic index)  and ability to reduce tooth decay and the build-up of plaque.

Not only can S2G provide a sustainably-sourced and cost-effective supply of xylitol, but given our co-production technology, our bioglycols are directly-competitive with petrochemicals used in common petroleum-based chemicals used in a wide range of consumer and industrial products such as resins, PET/PEF plastic drink containers, cosmetics, pharmaceuticals, coolants and antifreeze – even at today’s low fossil fuel costs.

The 4 Yeses

Think about the 4 Yeses:

Yes to a lowest-cost xylitol production process

Yes to bio-glycols that are cost competitive with petrochemical glycols

Yes to a highest-value applications for cellulosic C5 sugars

Yes to profitable biorefineries.

Reaction from the stakeholders

“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.”

“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.

“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.”

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