A startup says it can make sugar for biofuel from wood chips at a fraction of the normal cost.

Renmatix, a startup based in Kennesaw, Georgia, is using water at high pressure and temperature to transform wood chips into sugar, which can then be fermented to make biofuels and other chemicals. The company says the process can produce sugar for the same price as making it from sugarcane, which has led to profitable biofuels production in Brazil.