Burcon NutraScience Corporation, a company that specialises in developing functionally and nutritionally valuable plant-proteins, has announced that it has entered into a joint venture partnership with an investor group to build a new $70 million pea-protein and canola-protein commercial production facility in Western Canada. The protein production facility, which is planned to initially process approximately 20,000 tonnes of peas per year starting in mid-2020, will produce Burcon’s Peazazz and Peazac pea proteins, as well as Burcon’s Supertein, Puratein and Nutratein canola proteins.
“Today’s announcements constitute a truly transformative event for Burcon, and a new chapter in Burcon’s development focused on bringing the company’s unique plant proteins to market directly as a producer.” said Johann F. Tergesen, Burcon’s president and chief executive officer. “Having the capacity to produce both our unique pea proteins, as well as our canola proteins, in our own production facility is a key pillar of our differentiation strategy. The ability to blend our pea and canola proteins to create nutritionally unparalleled plant protein combinations, while preserving the highly desirable functional properties the proteins naturally possess, will give us a true competitive advantage. We look forward to offering our pea and canola protein products to customers and consumers in Canada, North America and worldwide.”
Features of the agreement include:
- Establishes a joint venture to build and operate a $65 million plant protein production facility.
- JV partner investor group has extensive operations expertise in production facility design and startup, as well as considerable expertise in the manufacturing and sale of plant proteins.
- JV partner investor group to invest up to $16 million in capital contributions in joint venture partnership.
- Enters into 20-year exclusive license agreement for Burcon’s pea and canola protein technologies.
- Plant protein production facility designed to produce Burcon’s Peazazz® and Peazac™ pea proteins, as well as Burcon’s Supertein®, Puratein® and Nutratein® canola proteins.
- World’s only commercial-scale food-grade canola protein production facility.
- Phase 1 production processing capacity of 20,000 tonnes per year.
- Funding structure provides significant equity position for Burcon.
- Ability to produce plant protein blends with exceptional nutritional value.
- Advanced state of readiness: completion projected in mid-2020.
- Production plant design incorporates ability to efficiently expand processing capacity in the future.
- Advanced state of product development discussions with fast-moving consumer goods companies.