Charlottetown-based company, Phyterra Yeast Inc., is expanding to a new facility in Summerville and developing its own production capacity, thanks to a combined investment of more than $4.9 million from the federal and provincial governments and the private sector.
The Honourable Keith Ashfield, Minister of State (Atlantic Canada Opportunities Agency), the Honourable Allan Campbell, PEI Minister of Innovation and Advanced Learning, and Mr. Garth Greenham, President of Phyterra Yeast Inc., gathered today in Summerville to announce funding details.
“The Government of Canada is committed to partnering in initiatives that continue to fuel the growth of an innovative economy on Prince Edward Island,” said Minister Ashfield. “This investment will provide the tools necessary for Phyterra Yeast Inc. to expand their success from here in Atlantic Canada.”
Phyterra Yeast Inc. will manufacture functionally enhanced yeast products within their new production facilities which will initially benefit commercial wineries in the United States and internationally. Phyterra recently launched three strains of novel wine yeast that prevent the sensory and spoilage issues that often occur from the formation of hydrogen sulphide during fermentation, a well-recognized industry problem.
“Bioscience is a rapidly growing economic sector in Prince Edward Island that is providing sustainable jobs for Islanders,” said Hon. Allan Campbell, PEI’s Minister of Innovation and Advanced Learning. “The development of a new production facility in Summerville, near Montague will create 20 new long-term jobs in rural PEI and will help a company develop new products that will be widely used in the global food and beverage industry."
The Government of Canada is investing $1,000,000 in this project through ACOA’s Business Development Program for the acquisition production equipment. The Province of Prince Edward Island is contributing a $1.96 million repayable loan to assist with the purchase of new equipment in the project and a labour rebate of up to $300,000 which is tied to job creation. Functional Technologies Corp. is investing more than $1.6 million.
“Phyterra yeast is now in trials with large California wineries, including three of the top ten producers in the US,” said Garth Greenham. “We have had excellent market feedback and this funding support from the federal and provincial governments will greatly assist Phyterra in accelerating commercial production and sales of our yeast.”
Phyterra’s primary market involves the commercialization of an intellectual property-protected enhanced yeast for the prevention of hydrogen sulphide in wine production, a common sensory quality problem in fermented beverages, which, even in minute quantities, produces off-odours reminiscent of rotten eggs. A second technology is the world's first and only yeast that reduces the formation of ethyl carbamate, a known carcinogen produced by yeast in the fermentation process. These two yeast technologies have already attracted substantial interest from the international wine industry.