Novozymes and Lignol sign deal to make biofuel from wood

Partners to develop a commercially viable process for making ethanol from forestry waste. Aiming for a cost down to $2 per gallon, a price competitive with gasoline and corn ethanol.

BAGSVAERD, Denmark, June 15 /CNW/ - Novozymes, the world's leading producer of industrial enzymes, and Lignol Energy Corporation, a leading company in the cellulosic ethanol sector, today signed a research and development agreement to make biofuel from wood chips and other forestry residues. The partners aim to develop a process for making biofuel from forestry waste at a production cost down to $2 per gallon, a price competitive with gasoline and corn ethanol at the current US market prices.

"Novozymes' goal is to enable commercial production of cellulosic biofuel from a wide range of feedstocks," says Claus Crone Fuglsang, Senior Director of BioEnergy R&D in Novozymes. "Our enzymes have the unique ability to turn wood residues and plant waste into fuel for our cars. Lignol is an industry frontrunner and our work together over the past couple of years has reinforced a shared vision to produce energy and value from wood waste. We look forward to continued improvement under this partnership."

Pilot-scale biorefinery in Canada

Together, Lignol and Novozymes have the necessary know-how to turn wood residues into fuel. Lignol's pre-treatment technology has established them as a leader in dealing with woody biomass and in February 2010, Novozymes launched enzymes that enable commercial production of biofuel from plant waste. The enzymes convert cellulose in biomass into sugars that can then be fermented into ethanol. The parties plan to use Lignol's industrial pilot plant in Burnaby, British Columbia, Canada to optimize both Lignol's process and Novozymes' enzymes on different types of forestry waste. Later, Lignol plans to construct large-scale biorefineries for the production of cellulosic biofuel from wood chips and forestry residues.

"The progress we have achieved to date with enzymes from Novozymes is extremely promising and a successful outcome of this collaboration should position us to produce cellulosic ethanol from woody biomass profitably and without the need for long term government subsidies," says Lignol President and CEO, Ross MacLachlan.

The agreement between Lignol and Novozymes formalizes a Memorandum of Understanding between the partners from February 2010.

About Novozymes

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries Novozymes creates tomorrow's industrial biosolutions, improving its customers' business, and the use of the planet's resources.

With over 700 products used in 130 countries, Novozymes' bioinnovations increase industrial performance and safeguard the world's resources by offering superior and sustainable solutions for tomorrow's ever-changing marketplace. Read more at www.novozymes.com.

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 high purity HP-L(TM) lignins. HP-L(TM) 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 about Lignol, please visit our 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 fund our Baseline Operations, (using the definition of "Baseline Operations" as set out in Lignol's Management's Discussion & Analysis of Financial Condition and Results of Operations for the three and nine-month periods ended January 31, 2010), the ability of Lignol and Novozymes to successfully work together to achieve the aforementioned goal of producing fuel-grade ethanol at a price of $2 per gallon, the development status of our fully integrated biorefinery pilot plant in Burnaby, British Columbia, the planning and development of our previously 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 biochemicals and our ability to pursue these opportunities with strategic partners. 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, our ability to establish the validity of our technology at the fully integrated biorefinery pilot plant scale, our ability to satisfy the conditions of existing government grants and to obtain new additional grants, our ability to finance and complete the development of the commercial demonstration plant, our ability to develop our 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. 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 technological challenges that remain to be surpassed in obtaining the necessary operating data from our fully integrated biorefinery pilot plant that is required prior to completing the next design scale-up of the technology, the complexity of the development of the commercial demonstration plant, financial market conditions which will effect our ability to finance our operations, 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.

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SOURCE Lignol Energy Corporation

For further information: For further information: Novozymes, Paige Donnelly, Office: 919-494-3209, Mobile: 919-218-4501, pagd@novozymes.com; Lignol Energy Corporation, David Turner, Chief Financial Officer, Tel: 604-453-1241, Email: dturner@lignol.ca, Email: info@lignol.ca; The Equicom Group, James Smith, Investor Relations, Tel: 416-815-0700 ext. 229, Email: jsmith@equicomgroup.com

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