Lignol develops engineering design package for commercial biorefinery

  • Validates economic returns for commercial biorefinery
  • Major milestone achieved with Pöyry Engineering

VANCOUVER, April 18 /CNW/ - Lignol Energy Corporation (TSX-V: LEC), a leading technology company in the advanced biofuels and renewable chemicals sector today announced it has completed an engineering design package for a commercial-scale biorefinery that would produce up to 80 million litres of cellulosic ethanol (approximately 20 million US Gallons) and 55,000 tonnes of High Performance Lignin (HP-L™) derivatives annually.

"Completing this milestone is a significant step forward in our plan to develop a financially viable, commercial-scale biorefinery and market our technology world wide," said Ross MacLachlan, President and CEO. "The design package and cost estimate are based on robust and valuable design data generated over the past two years through a series of extensive operating campaigns conducted by our scientific and engineering teams at our pilot-scale biorefinery in Burnaby, B.C."

The design package was developed with Lignol's engineering contractor, Pöyry (Vancouver) Inc., a global leader in engineering and management consulting in the energy and industrial sectors.  "Lignol's real-time pilot plant data added the degree of certainty to the design basis for our engineering work," said Ulf Tryggvesson, Managing Director of Pöyry's Vancouver operation. "Based on what we have seen, Lignol has one of the world's leading biorefining technologies and completing the next stage of investment grade engineering will provide a high degree of accuracy for a commercial project," he added.

The engineering studies for a commercial scale project indicate rates of return suitable for consideration by partners and investors.  Calculations have taken into account the recent price of crude oil, incentives for the construction of biorefineries and production of advanced biofuels along with pricing indications received from key suppliers and customers.

Additional campaigns in Lignol's pilot-scale biorefinery are ongoing to refine the design basis and equipment selection needed for scale-up in order to complete an investment grade design and cost estimate for a commercial plant.

About Lignol

Lignol (TSX-V: LEC) is a Canadian company undertaking the development of biorefining technologies for the production of advanced biofuels, including fuel-grade ethanol, and renewable chemicals 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 renewable chemicals, including high purity HP-L™ lignins. HP-L™ lignin represents a new class of high purity lignin extractives (and their subsequent derivatives) which can be engineered to meet the chemical properties and functional requirements of a range of industrial applications that until now has not been possible with traditional lignin by-products generated from other processes. Lignol is executing on its development plan through strategic partnerships to further develop and integrate its 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, please visit Lignol's website at www.lignol.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution concerning forward-looking statements:

Certain statements contained in this document may constitute forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include, without limitation, statements or information about our ability to continue as a going concern and to raise additional financing to fund our Baseline Operations (as defined in the Company's Management's Discussion & Analysis of Financial Condition and Results of Operations for the three months ended January 31, 2011), the development status of our integrated pilot-scale biorefinery in Burnaby, British Columbia, our ability to realize the benefits of our improved process, AlcellPlus™, our ability to drive down capital and operating costs, our ability to complete investment grade  design and cost estimates and to attract funding from markets, partners and governments to enable the construction  first-of-kind commercial scale plants, our ability to successfully defend our patent applications and to receive approval for the claims submitted, the planning and development of our proposed cellulosic ethanol commercial demonstration plant, our ability to exploit commercial opportunities and broaden our market opportunities for a range of cellulosic derivatives and environmentally sustainable renewable chemicals, including our HP-L™ lignin and lignin derivatives and our ability to pursue these opportunities with strategic partners, the ability of Lignol and Novozymes to successfully complete our joint development program, the retention and receipt of future funding by way of government awards and corporate contributions, and our ability to obtain additional project support in the form of loan guarantees. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements or information reflect Lignol's current views with respect to future events and are subject to certain risks, uncertainties and assumptions including, without limitation, the technological challenges that remain to be surpassed in obtaining the necessary operating data from our pilot-scale biorefinery that is required prior to completing the next scale-up of the technology, our ability to successfully scale our technology, our ability to successfully defend our current patent applications and to secure issued patents in respect of those claims, our ability to satisfy the conditions of existing government grants and to obtain new additional grants, the timely receipt of funding under various government awards and corporate contribution agreements, our ability to continue to finance our Baseline Operations and to finance and complete the development of a commercial demonstration plant, our ability to develop commercial products, our ability to obtain requisite regulatory approvals and our ability to enter into agreements with strategic partners on terms acceptable to us. 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, and changes in government regulation. 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, the complexity of the development of the commercial demonstration plant, market conditions which will affect our ability to finance our operations, the price of gasoline and demand for ethanol, the market pricing of renewable chemicals, risks relating to the protection of Lignol's core technology from infringement and 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. Except as required by law, 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.

SOURCE Lignol Energy Corporation

For further information:

Lignol Energy Corporation
David Turner
Chief Financial Officer
Tel: 604-453-1241
Email: dturner@lignol.ca
Email: info@lignol.ca

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Lignol Energy Corporation

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