Xylitol Canada Inc. announced that the company has completed pilot demonstration of its cellulosic xylose process. The successful three month campaign proved out critical process and economic metrics needed to advance into commercial scale detailed engineering. Xylose is a simple sugar used for the production of xylitol.

Since 2008, Xylitol Canada has been working closely with leaders in the biochemical industry to develop a process that can produce the most environmentally sustainable xylose and xylitol available. The process minimizes waste by eliminating the need for harsh acids and other chemicals that are used to produce imported xylitol. Using a combination of steam and enzymes, Xylitol Canada is able to produce xylose with significantly less waste.

The Company's xylose commercialization strategy focuses on strategic 'biorefinery' partnerships. In biorefineries, biomass waste from one company's production is the feedstock for another's production. Xylitol Canada's waste can be used to produce higher value biochemicals and transportation fuels.

The recently completed trial builds on previously completed pilot scale work by integrating the Xylitol Canada process from end-to-end in a single facility. Representative aspen hardwood was used as feedstock. Trial results were consistent with laboratory experiments, supporting the technical feasibility of process scale-up.

The company's model analysis demonstrated potentially attractive investment returns and generally supports moving forward with engineering development of a commercial scale facility. A commercial facility is being designed to produce up to 10,000 tonnes of xylose per year from sustainably harvested North American hardwood.