May 16, 2008

Bio-Exx builds rapeseed-crushing plant to supply protein for fish feed
 

Toronto-based Bio-Extraction Inc. (Bio-Exx) is building a US$10 million rapeseed crushing plant to provide protein to the global aquaculture industry.

Bio-Exx received more than US$11 million from a group of four venture capital funds to complete the facility which would be located in the Corman Industrial Park.

Bio-Exx has incorporated a Saskatchewan subsidiary, BioExx Specialty Proteins Inc. to operate and sell the output from the Saskatoon plant, which would serve as a replacement source of protein for the global aquaculture industry due to threatened stocks of Peruvian anchovy.

The facility would operating with low volume and low temperature as high-volume crushing and high temperature extraction destroys or degrades valuable protein, according to Bio-Exx chief executive officer Chris Carl.

The process will turn about 42 percent of the rapeseed into oil, with 25 percent of the seed weight becoming specialty proteins for the fishmeal market and the remaining 17 percent to be sold as meal for livestock.

Bio-Exx is the second company to venture into this market, with Saskatoon company Can Pro Ingredients as the first. Carl is not feeling threatened, saying that the market is huge and there is room for both companies.

The value of this market is so great that Bio-Exx economics would not be affected whether rapeseed as a commodity is US$300 per tonne or US$600, said Carl.

The facility is expected to open late this year and to supply 40,000 tonnes of rapeseed to Bio-Exx annually.