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SDTC Awards Lignol Cellulosic Ethanol Project Additional C$1.82 Million

The Government of Canada and Sustainable Development Technology Canada (SDTC) has awarded a cellulosic ethanol project led by Lignol Energy Corporation’s wholly-owned subsidiary, Lignol Innovations Ltd. up to C$1.82 million (US$1.5 million) in additional funding contributions from SDTC.

This award is in addition to the C$4.42 million awarded to date from SDTC representing an aggregate contribution from SDTC of up to C$6.24 million (US$5 million). The scope of the current work plan that commenced June, 2006 with the support from SDTC will be completed by Q2 2009 and supports the overall project costs estimated to be C$20.36 million (US$16.4 million). The project will result in the establishment of an integrated, industrial-scale facility for the production of cellulosic ethanol and unique renewable biochemicals.

This funding has enabled us to extend this phase of operations well into the first half of 2009 with an expanded scope of our project together with enhancements for enzyme utilization and process improvements.

—Ross MacLachlan, President and CEO of Lignol

Lignol uses a 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.

The technology produces a clean pulp that converts feedstock rapidly into fermentable sugars with high yield and lower enzyme costs. The process also produces co-products with revenues that mitigate the costs of production and commodity risks.

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