VANCOUVER, Nov. 24 /CNW/ - Lignol Energy Corporation (TSX-V: LEC) ("Lignol" or "the Company"), a leading technology company in the cellulosic ethanol and biorefining sector, and PPG Industries, Inc. ("PPG") (NYSE: PPG), a global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiber glass, today announced a Joint Development Agreement (the "Agreement") for the development of commercial applications incorporating Lignol's unique class of High-Purity Lignin and lignin derivatives ("HP-L(TM) lignin") in various industrial coatings.
The Agreement establishes a program to incorporate Lignol's renewable and sustainable HP-L(TM) lignin into PPG's existing and potentially new coatings applications. The Agreement includes a detailed and stage-gated work program that the parties will work on exclusively utilizing Lignol's HP-L(TM) lignin as a replacement for chemicals derived from petroleum-based products.
"There is a significant market trend toward products containing renewable and sustainable materials that have environmental and functional benefits," said Chuck Kahle, Chief Technology Officer of PPG Industries, Inc. "We are interested in exploring potential applications for Lignol's HP-L(TM) lignin within our coatings businesses for several key reasons including: the potential to displace petroleum based feedstocks with a biobased sustainable raw material; to introduce chemical functionality, rarely found elsewhere in nature, which will benefit end use properties."
"We are delighted to be working with PPG Industries, a company that has extensive research and development capabilities, manufacturing and operations in more than 60 countries, and a commitment to providing their customers with products that reduce environmental impact," said Ross MacLachlan, President and CEO of Lignol. "Our world class lignin research group looks forward to working with PPG Industries in developing application-specific custom coatings products using HP-L(TM) lignin to displace petroleum-based chemicals. This Agreement demonstrates our continued progress in the development of potentially large-scale commercial applications for our high purity lignins."
In converting non-food cellulosic biomass feedstocks, such as agricultural residues and forestry waste, into ethanol, the Lignol biorefining process fractionates the biomass, and extracts lignin, which naturally occurs in all cellulosic biomass, to produce a range of unique HP-L(TM) lignin materials. These compounds have been shown to have application in a wide range of industrial products replacing materials typically derived from petrochemicals, with a consequent reduction of greenhouse gas formation.
About PPG Industries
Pittsburgh-based PPG is a global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiber glass. The company has more than 140 manufacturing facilities and equity affiliates and operates in more than 60 countries. Sales in 2008 were US$15.8 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.
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) lignin. 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.
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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 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 including the potential for entering into a joint development agreement with PPG Industries. 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 develop our products 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, 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
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