Comprehensive article about BXI.V – Bio Extraction and their plans going forward. Well worth reading. I asked for permission to republish the article on my website. It was published by Prairie Business Magazine. Enjoy!
http://www.prairiebizmag.com/event/article/id/9953/
Minot agriculture park attracts Canadian company
Bio-Extraction Inc., a Canadian-based agricultural technology company, has announced plans to build a canola processing plant at the Value-Added Agricultural Complex in Minot, ND.
By: Candi Helseth, Prairie Business Magazine
Bio-Extraction Inc., a Canadian-based agricultural technology company, has announced plans to build a canola processing plant at the Value-Added Agricultural Complex in Minot, ND.
Construction is expected to start next spring on a 10-acre lot in the complex, which was developed by the Minot Area Development Corporation to enhance the city’s desirability as a location for agriculture-related businesses. Production at the proposed $50 million facility is scheduled to begin in 2011.
“BioExx is a good fit for our ag park,” says Jerry Chavez, president and CEO of the Minot Area Development Corporation. “From the standpoint of agribusiness or value-added processors, BioExx is the type of company we envision as tenants. What we’re looking for in the ag park is to add companies whose products add value to North Dakota commodities. BioExx fits that very well.”
Toronto-based BioExx contributes to the global food market supply by extracting oil and high-value proteins from oilseeds to produce food proteins and oils. The company’s patented low-temperature extraction and proprietary protein separation technology allows for the use of significantly lower temperatures than conventional methods of extracting the active ingredients and oils from oilseeds, resulting in higher yields and higher-quality meal, oils and proteins, according to BioExx CEO Chris Carl.
“Pure or isolated protein is becoming much more important in food production to satisfy the demands of a growing global population,” Carl says. “With an aging and more health-conscious population, people are looking to vegetable protein as a supplement to animal protein. By isolating the proteins in canola, our patented technology can generate up to five times as much food value from a ton of harvested crop compared to conventional processes. We believe we can make an important contribution to the protein additive market, which is currently a $16 billion industry and is projected to grow to over $25 billion in the next seven years.”
BioExx also has a presence in Saskatoon, Saskatchewan, where the company’s first canola processing plant is currently under construction. The Saskatoon facility will process 40,000 metric tons of canola a year, while plans call for the Minot facility to process 80,000 metric tons annually.
“Minot is an agriculture and business-friendly community that has put tremendous effort into providing infrastructure that meets the requirements of companies looking for a new base of manufacturing operations,” Carl says. “This allows us to meet our goal of expanding internationally and into a different growing region, while at the same time enjoying a reasonable proximity to our first plant.”
Chavez said the Minot community has made a large capital investment in the ag park, encouraging faster start-ups and providing additional support for agribusinesses. The park is equipped with easy access to two railroad lines and the Port of North Dakota intermodal shipping facility. The land is zoned for agricultural use and water and sewer lines are already available.
“Minot has put significant capital investment into the Value-Added Agricultural Complex to build-out strategic assets that companies like BioExx can leverage,” Minot Mayor Curt Zimbelman says. “We believe with the investment made in the ag complex, Minot can help BioExx become a world leader in the industry of high-value proteins.”
Minot’s proximity to the Canadian border, along with North Dakota’s strong economy and reputation as a leading U.S. canola grower, also contributed to the company’s decision to locate its second plant in Minot.
Chavez credited the North Dakota Department of Commerce and North Dakota Governor John Hoeven’s office for helping to attract BioExx to Minot.
“They really got BioExx interested in North Dakota as a location and then they helped us put this project together,” Chavez says. “This effort has been a real partnership with the state in many ways.”
The Minot Area Development Corporation, along with private lenders and the state-owned Bank of North Dakota, has proposed providing approximately $25 million in loans and or capital leases for the $50 million project. BioExx plans to fund the remainder of the project with cash flow from the Saskatoon plant.
Carl says production at the planned Minot facility is expected to begin in 2011. But Chavez cautioned that the plan is still in the early stages and the letter of intent signed between the City of Minot and BioExx is “just the beginning of a long process.”
“We’re confident it will go well,” Chavez says. “What we recognized early on is that BioExx principals are very keen on execution. BioExx delivers what they say they can and when they say they will and that has helped them to successfully take their relatively new company into the global marketplace.”
Helseth is a Minot, ND-based freelance writer. She can be reached at candi@srt.com.
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