VANCOUVER, Oct. 28 - Lignol Energy Corporation (TSX-V: LEC) ("Lignol" or "the Company"), a leading technology company in the cellulosic ethanol and biorefining sector, today announced that its U.S. subsidiary, Lignol Innovations Inc., has signed a US$30 million Cooperative Agreement (the "Agreement") with the U.S. Department of Energy ("DOE"). The Agreement formalizes the DOE's previously announced financial assistance award to Lignol of up to US$30 million relating to the construction of a commercial demonstration cellulosic ethanol plant in Colorado. The Agreement sets out two stages of funding allocation based on the achievement of various milestones.
The first phase of the Agreement covers the development of the commercial demonstration plant leading up to its construction and will include such activities as preliminary plant engineering and design as well as environmental documentation and permitting. The costs associated with this first phase are expected to be approximately US$3.12 million, of which the DOE will contribute 50% (US$1.56 million).
Upon the successful completion of the milestones outlined within the first phase, the second phase of funding support will commence with the DOE contributing up to 50% of the total cost of plant construction up to a maximum of US$28.44 million. As with many similar federally funded programs, such contributions are subject to the availability of appropriated funding for each fiscal year.
Once completed, the plant will process non-food cellulosic materials, such as hardwood, softwood and agricultural residues and is expected to produce in excess of two million gallons per year of cellulosic ethanol, plus biochemical co-products, including HP-L(TM) High Purity Lignin ("HP-L(TM) Lignin").
About the DOE biofuels funding program
In May 2007, the DOE announced that it will provide up to US$200 million, over five years to support the development of small-scale cellulosic biorefineries in the United States, under its cellulosic ethanol and biofuels funding program. Through this funding initiative, the DOE intends to support projects to develop biorefineries at ten percent of commercial scale that produce liquid transportation fuels such as ethanol, as well as bio-based chemicals and bioproducts used in industrial applications. Building on President Bush's goal of making cellulosic ethanol cost-competitive by 2012, these ten-percent of commercial-scale biorefineries will use a wide variety of feedstocks and test novel conversion technologies to provide data necessary to bring online full-size, commercial-scale biorefineries. For further information on the DOE's small-scale biorefinery funding program, please refer to the DOE web site at: www.energy.gov.
About Lignol
Lignol (TSX-V: LEC) is a Canadian company undertaking the development of biorefining technologies for the production of fuel-grade ethanol and other biochemical co-products from non-food cellulosic biomass feedstocks. Lignol's modified solvent based pre-treatment technology facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including a High Purity Lignin (HP-L™). Lignol is executing on its development plan through strategic partnerships 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 that have synergies with its biorefining technology. For more information about Lignol, please visit our website at www.lignol.ca.
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Caution concerning forward-looking statements
Certain statements contained in this document may constitute "forward-looking statements". When used in this document, the words "may", "possibility", "potential", "should", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "investigate", "looking at" as they relate to Lignol or its management or Huntsman and its management, are intended to identify forward-looking statements or information. Such statements or information reflect Lignol's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors could cause Lignol's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or information, including among other things, those risk factors which are discussed elsewhere in documents that Lignol files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company expressly disclaims any intention or obligation to update or revise any forward looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
For further information:
Lignol Energy Corporation
Paul Hughes,
Vice President - Corporate Development and Communications,
Tel: (604) 222-9800 ext. 110,
Email: phughes@lignol.ca
Email: info@lignol.ca The Equicom Group
Bruce Wigle
Investor Relations
Tel: 416-815-0700 ext. 228
Email: bwigle@equicomgroup.com