Vancouver, B.C– May 1, 2007 – Lignol Energy Corporation (TSX-V: LEC) today announced that its wholly owned subsidiary, Lignol Innovations Ltd. (“Lignol”), has been awarded grants of up to $994,620 from the Alberta Government and the National Research Council (“NRC”), to support the ongoing development and commercialization of its unique process technology for the conversion of cellulosic biomass into ethanol and other biochemicals.
The grant from the Alberta Government of up to $870,000 has been awarded as a part of the government’s Biorefining Commercialization and Market Development Program, and will be received in two tranches. The first tranche of $245,000 will be advanced immediately, with the balance of up to $625,000 becoming receivable, upon completion of the related work program, which is expected to be prior to March 31, 2008. Funds will be applied to the development of pre-treatment and bioconversion technology for agricultural residues, and for market development research of biorefinery product applications.
The grant from NRC of up to $124,620 has been awarded as a part of the Industrial Research Assistance Program (“IRAP”). Funds will be received in tranches prior to July 31, 2007, against claims for reimbursement of actual salaries and contractors’ fees incurred, and will be applied to developing process enhancements for the biorefining of softwood.
“These projects are complementary to our core development work plan and accelerate the application of our technology to a broader range of feedstocks,” said Ross Maclachlan President & CEO.
About Lignol
Lignol is a Canadian company undertaking the development of biorefineries for the production of fuel-grade ethanol and other biochemical co-products from cellulosic biomass feedstocks. Lignol’s modified solvent based pre-treatment technology, originally developed by a former affiliate of General Electric, and then further developed and commercialized for wood-pulp applications by a subsidiary of Repap Enterprises Inc., facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including lignin. Lignol is executing on its development plan with several major Canadian companies in a strategic partnership to further develop and integrate the core technologies on a commercial scale. Lignol also intends to invest in, or otherwise obtain, equity interests in energy related projects which have synergies with its biorefining technology. For more information about Lignol, please visit our website at www.lignol.ca
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For further information, contact:
Lignol Energy Corporation
Ross MacLachlan
Chief Executive Officer
Tel: 604-222-9800 ext. 107
Email: info@lignol.ca The Equicom Group
Bruce Wigle
Investor Relations
Tel: 416-815-0700 ext. 228
Email: bwigle@equicomgroup.com