Lignol confirms site for cellulosic ethanol plant

Lignol Energy Corporation (Lignol), a leading technology company in the cellulosic ethanol and biorefining sector, announced August 28 that its U.S. subsidiary, Lignol Innovations Inc., is moving forward with its previously announced plan to construct a commercial demonstration cellulosic ethanol plant in Colorado. Lignol has recently received approval from the U.S. Department of Energy (DOE) to locate the facility in Grand Junction. The approved location is a change from the originally proposed site adjacent to Suncor Energy (U.S.A.) Inc.'s (Suncor) refinery in Commerce City.

Lignol is expecting that Suncor will operate the facility, to be built next to Suncor's products distribution terminal in Grand Junction. The Grand Junction location offers logistical advantages including access to feedstock and ethanol distribution efficiencies. Site specification decisions are subject to regulatory approval.

In January 2008, the DOE approved Lignol's funding application for a proposed cellulosic ethanol plant, including up to US$30 million in funding to construct the facility. Lignol continues to negotiate the final details of the DOE funding agreement and related party agreements.

The proposed facility will be designed to process hard and soft woods and agricultural residues such as straw and corn stover. Lignol expects the facility, once operational, will process about 100 tonnes of feedstock per day and produce approximately 10 million litres of ethanol per year.