Western Economic Diversification Canada (WD) is contributing $562,500 over the next two years to help POS Pilot Plant Corporation expand its small-scale bioprocessing capabilities to better serve its small to medium-sized clients in Western Canada.

Public Works and Government Services Minister Ralph Goodale, on behalf of Stephen Owen, Secretary of State (Western Economic Diversification) (Indian Affairs and Northern Development), today announced WD funding for the $625,000 project. The new equipment will be incorporated into POS's existing mini-scale bioprocessing capabilities and allow small firms to bridge the gap between the laboratory and full-scale commercial production. Their finished product will be available more quickly, using fewer resources.

"Today's investment demonstrates the Government of Canada's commitment to to strengthening our research and development capacity in order to bring new knowledge to market more quickly," said Minister Goodale. "That way, we can keep our industry competitive and build jobs and prosperity in Saskatchewan and across Western Canada."

"We are very delighted that Western Economic Diversification Canada will help us further build on our mini pilot plant concept," said Robert E. Morgan, President and Chief Executive Officer of POS Pilot Plant Corporation. "This new funding will help us add equipment which will not only support the extraction and refining equipment we put in place this past year through WD investment, but also allow us to move into technologies which require less solvent use in the processing of biological materials. This fits well with the move to reduce emissions (Kyoto Accord) and the interest in eliminating solvents in processed high value products aimed at the health food market."

POS is contributing $62,500 plus their own considerable in-house expertise. The equipment consists of a mini-press, an extractor, a decanter centrifuge and a microfluidizer. All of these units can be used for safely extracting components from natural materials. Pilot plant clients can have their materials tested in small quantities, even as small as one pail, to determine how they will perform under conditions that closely mimic full-scale industrial production.

The new equipment can be applied to a wide range of bioproducts, including food ingredients, nutraceuticals, animal feeds, cosmetics, pharmaceuticals, and industrial materials such as biodiesel and bioplastics.

The funding announced today is in addition to a $635,000 contribution from WD in 2001 to establish micro plant capabilities at the POS research centre in Saskatoon. The new funding is expected not only to help small and medium-sized business, but also to explore processes that could help other initiatives such as reducing emissions, one of the aims of the Kyoto Protocol.

POS Pilot Plant Corporation is a non-profit contract research and development facility specializing in bioprocessing. Currently in its 25th year of operation, the organization employs 88 specialists and support staff. In the fiscal year ending March 2002, POS generated record sales of $5,278,000, and provided service to clients on over 190 projects.

Federal funding for this project was provided for in the December 2001 budget and is therefore built into the existing financial framework.

For additional information, contact:

Joanne Mysak
Manager, Consultations
Marketing and Communications
Western Economic Diversification Canada
Saskatoon, Saskatchewan
(306) 975-5475

Robert Morgan
President and CEO
POS Pilot Plant Corp.
(306) 978-2800