The Chinese client is an operator in the corn biochemical processing and new energy sectors in China and is owned by a consortium of Chinese companies. SBI’s equipment will be installed in a cellulosic ethanol demonstration plant scheduled for completion in late 2010.

The plant will be located adjacent to an existing starch-to-ethanol facility and will utilize local corn stover as feedstock.

The contract was obtained with the assistance of Pacitec, SBI’s exclusive agent in China. Under the terms of the contract, the company will realize revenues of approximately $6.5m from supply of equipment and a technology license as well as certain design and engineering services.

Murray Burke, president of SBI, said: “We are extremely pleased that one of the largest fuel alcohol companies in China has selected SBI as its supplier of choice for fiber preparation and pretreatment as it expands its capabilities to include fuel alcohol produced from cellulosic biomass.

“We look forward to working with our customer to help make the demonstration plant an unqualified success. As SBI’s second major project in China, it represents another important step forward as SBI establishes its business in this very important market.”