OMAHA (DTN) -- SunOpta Inc. announced the sale of its fiber-processing and pretreatment technology, SunOpta BioProcess Inc., to cellulosic-ethanol technology developer Mascoma Corp., according to a news release from SunOpta.

The purchase will allow for the creation of a company with capabilities for converting non-food cellulose such as wood chips, energy crops and organic solid waste into ethanol and co-products.

The transaction values SBI at about $51 million and will be funded via a combination of preferred and common shares in Mascoma, the release said. As a result, the combined company will be 73 percent owned by existing Mascoma shareholders, about 18 percent by SunOpta and the remaining balance by other SBI shareholders.

The new company will have operational presence in both the U.S. and Canada, and an extensive intellectual property position in the cellulosic biofuels sector.

Both companies have development partners in the U.S., Canada, China, Brazil and South Africa. In early 2010, the release said, SBI announced a contract to supply its fiber preparation and pretreatment technology to one of the largest operators in the new energy sector in China.

Mascoma, through its affiliate Frontier Renewable Resources LLC, is currently developing a commercial-scale cellulosic ethanol plant in Kinross, Mich.

(AG)

© Copyright 2010 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.