17.4M Worth of Funding for Fortress Xylitol’s Project

17.4M Worth of Funding for Fortress Xylitol’s Project

The Government of Canada and Quebec is contributing 17.4 million to Fortress Xylitol, more than half of $33 Million (the total project cost).

The Fortress is commercializing its technology to produce xylitol, a low-calorie sweetener and a healthier substitute for sugar. It is mainly produced for the food market and food manufacturers and will be made from hemicelluloses generated by Fortress Specialty Cellulose Inc.

Fortress also aims to have a construction in Thurso for a demonstration plant where to do the testing of innovative processes for the xylitol production while reducing the lifecycle of GHG emissions.


The funding contributions are from the following:

$10.4M was provided by the federal government of Canada from the funding in Sustainable Development Technology Canada (SDTC).

$7M from the Government of Quebec.

  • $5M in an equity investment
  • $2M loan through the investment projects component of Quebec’s ESSOR program.

Related: Canadian Innovation Grants are Transforming Businesses Nationwide


Sustainable Development Technology Canada is a foundation created by the Government of Canada that helps Canadian entrepreneurs and startups in the development and deployment of competitive clean technology solutions in the global market. It supports small-medium sized businesses through generous funding for feasible business projects. Thus, it is no surprise that they granted Fortress.

“We are extremely grateful for SDTC’s continued support and confidence in our proposed xylitol project and look forward to our partnership with IQ.”  says Mark Kirby, President of Fortress AB

SDTC also aims to encourage businesses to adapt, develop and demonstrate new clean technologies to lessen carbon footprint.

Related: SRED: The Most Generous Innovation Funding

It has invested almost $1 billion in some 350 ideas and over 300 enterprises, which have created over 9,400 well-paid jobs, generated some $1.9 billion in annual revenue, and reduced annual greenhouse gas emissions by 10.1 megatons of carbon dioxide equivalent. (Source: www.sdtc.ca)

THE COMPANY: Fortress Global Enterprises Inc.

Fortress Global Enterprises Inc, formerly Fortress Paper Ltd, is a Canada-based producer of specialty pulp, security papers, and other security-related products.

It operates its xylitol business through Fortress Advanced Bioproducts Inc., which has a laboratory and pilot plant facilities located at Vancouver, BC, Canada.  

Once the model for the xylitol production is approved, they will invest $150 million for the construction of the commercial plant that will produce 20,000 tons of xylitol a year.


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