Abengoa denies SunOpta dispute
January 1, 1970
BY Sarah Smith
Web exclusive posted March 19, 2008 at 3:17 p.m. CST
Spanish ethanol giant Abengoa Bioenergy issued a statement in late February denying it improperly used SunOpta Inc.'s proprietary cellulosic ethanol technology without compensation and said it will investigate whether the Brampton, Ontario-based company is using its technology.
The war of words between the two companies started earlier this year. In January, SunOpta announced it had suffered a $3 million loss on services and equipment provided to an Abengoa subsidiary in 2005. Under the agreement, SunOpta supplied its patented steam explosion technology for an Abengoa commercial-scale cellulosic ethanol facility that is being developed. In a statement filed with SunOpta's annual report to the U.S. Securities and Exchange Commission, SunOpta indicated it might sue to recover the loss.
"SunOpta's claims are baseless," said Gerson Santos, Abengoa executive vice president, in a statement issued in late February. "Abengoa does not improperly use any proprietary SunOpta technology in the United States and has no plans to."
Santos said Abengoa would investigate similar claims against SunOpta. A Spanish affiliate of Abengoa has initiated arbitration proceedings alleging that SunOpta breached an equipment supply contract involving a cellulosic ethanol plant in Spain.
In the Abengoa statement, Santos accused SunOpta of lodging "baseless claims" regarding the U.S. technology in an attempt to force a settlement in the Spanish case.
SunOpta, an Ontario organic food processor, also has a mineral division and a bioprocessing division, which converts biomass to ethanol. In conjunction with its announcement of the $3 million loss, SunOpta admitted it would have to restate its 2007 earnings, taking an estimated loss of $9 million to $11 million in its food division.
The announcement prompted a shareholder class-action lawsuit alleging that investors were misled about the company's financial status, which caused SunOpta's stock values to plummet. In October 2007, shares were trading at $15.50 each; this month, they are worth around $5 per share.
Spanish ethanol giant Abengoa Bioenergy issued a statement in late February denying it improperly used SunOpta Inc.'s proprietary cellulosic ethanol technology without compensation and said it will investigate whether the Brampton, Ontario-based company is using its technology.
The war of words between the two companies started earlier this year. In January, SunOpta announced it had suffered a $3 million loss on services and equipment provided to an Abengoa subsidiary in 2005. Under the agreement, SunOpta supplied its patented steam explosion technology for an Abengoa commercial-scale cellulosic ethanol facility that is being developed. In a statement filed with SunOpta's annual report to the U.S. Securities and Exchange Commission, SunOpta indicated it might sue to recover the loss.
"SunOpta's claims are baseless," said Gerson Santos, Abengoa executive vice president, in a statement issued in late February. "Abengoa does not improperly use any proprietary SunOpta technology in the United States and has no plans to."
Santos said Abengoa would investigate similar claims against SunOpta. A Spanish affiliate of Abengoa has initiated arbitration proceedings alleging that SunOpta breached an equipment supply contract involving a cellulosic ethanol plant in Spain.
In the Abengoa statement, Santos accused SunOpta of lodging "baseless claims" regarding the U.S. technology in an attempt to force a settlement in the Spanish case.
SunOpta, an Ontario organic food processor, also has a mineral division and a bioprocessing division, which converts biomass to ethanol. In conjunction with its announcement of the $3 million loss, SunOpta admitted it would have to restate its 2007 earnings, taking an estimated loss of $9 million to $11 million in its food division.
The announcement prompted a shareholder class-action lawsuit alleging that investors were misled about the company's financial status, which caused SunOpta's stock values to plummet. In October 2007, shares were trading at $15.50 each; this month, they are worth around $5 per share.
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