NEW YORK (AP) - Natural and organic food company SunOpta Inc. said Friday it will sell a cellulosic ethanol pilot demonstration facility to China Resources Alcohol Corp. for an undisclosed amount.

Shares of SunOpta rose 71 cents, or nearly 9 percent, to $8.81 on the Nasdaq in afternoon trading on the news. China Resources is the second-largest ethanol producer in China.

The facility, which uses technology from SunOpta's bioprocess group to convert organic materials to ethanol, is expected to start up in Zhaodong City in China at the end of the year. China is in the midst of a $5 billion, 10-year investment to expand ethanol capacity as its economy booms and fuel consumption skyrockets along with it.

Toronto-based SunOpta has been developing biomass conversion plants for three decades, using materials ranging from corn and grasses to wheat straw to make a range of products, including ethanol. The contract also includes Novozymes, a company that develops enzymes needed to convert items like corn or agricultural waste into fuel ethanol for cars.