Lignol signs MOU with Suncor to develop cellulosic ethanol plants



    VANCOUVER, March 8 /CNW/ - Lignol Energy Corporation announced today that
its wholly owned subsidiary, Lignol Innovations Ltd. ("Lignol"), has signed a
Memorandum of Understanding ("MOU") with Suncor Energy Products Inc.
("Suncor") granting Suncor a right of first refusal to build the first
cellulosic ethanol commercial demonstration plant in Canada using Lignol
technology.
    "This new relationship with Suncor represents a significant milestone for
us, as we advance our commercialization strategy," said Ross MacLachlan,
President and CEO of Lignol. "Suncor has provided us with valuable support in
the current commercialization work plan funded in part by Sustainable
Development Technology Canada."
    "We look forward to working with Suncor on the demonstration plant and in
the development of strategically located commercial scale facilities
subsequent to the successful deployment of the demonstration plant," said
MacLachlan.
    Ethanol is an alcohol which can be produced from renewable biomass
sources like corn, wheat and cellulose. In recent years, ethanol has been
increasingly added to conventional transport fuel to reduce greenhouse gas
emissions. Increased utilization of ethanol in both business and consumer
transport can be achieved using existing infrastructure and in compliance with
current automobile manufacturer fueling guidelines. Governments in North
America and around the world are mandating increased ethanol use as part of
their environmental strategies. The Government of Canada has set a goal of an
average of five per cent renewable-fuel content in vehicle fuels by 2010.
    "After the successful launch of our corn based ethanol plant in Ontario,
we are excited to work with Lignol to investigate alternate feedstocks using
Lignol's technology for the production of ethanol," said Warren Maclean, Vice
President, Energy Supply, Suncor Energy Products Inc. "Suncor was one of the
first to blend ethanol in our fuel and we are always looking at opportunities
to produce and advance renewable fuels."

    About Suncor Energy Products Inc.

    Suncor Energy Products Inc. is a wholly-owned subsidiary of Suncor Energy
Inc., an integrated energy company. In addition to a refinery in Sarnia,
Suncor Energy Products has a network of 281 Sunoco-branded retail and Fleet
Fuel cardlock sites and has a 50 per cent joint venture interest in over 200
Pioneer and UPI retail sites. Suncor Energy Products Inc. manufactures,
distributes and markets transportation fuels, heating oils and petrochemicals
primarily in Ontario. For more information, visit www.sunoco.ca or
www.suncor.com.

    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 (GE), 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

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    Caution concerning forward-looking statements:
    Certain statements contained in this news release may constitute
"forward-looking statements". When used in this news release, the words "may",
"would", "could", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect", "investigate", "looking at" and similar expressions, as
they relate to Lignol or 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. 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 which are discussed under the headings
"Risk Factors" and 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. Lignol does not intend, and does not assume
any obligation, to update such forward-looking statements or information.
    %SEDAR: 00004360E




For further information:

For further information: 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; Suncor Energy Products Inc., Patricia
Anderson; Director, Government Relations and Communications, Tel: (416)
733-7141, Email: PAnderson@suncor.com

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