Lignol and Suncor Sign Cellulosic Ethanol Project Development Agreement

    VANCOUVER, Oct. 23 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol") announced today that it has entered into a Cellulosic Ethanol
Project Development Agreement (the "Agreement") with Suncor Energy Products
Inc. ("Suncor"), a wholly owned subsidiary of Suncor Energy Inc. (TSX, NYSE:  
SU). (Financial figures in Canadian dollars unless noted otherwise).
    As part of this Agreement, Suncor has agreed to assist Lignol with
certain preliminary development work for the previously announced commercial
demonstration cellulosic ethanol facility to be located in Grand Junction,
Colorado. The Agreement also provides that the Parties negotiate a
comprehensive joint venture arrangement ("Joint Venture") to progress the
development of Lignol's technology from the pilot plant stage, to the
commercial demonstration plant stage through to the ultimate commercial
deployment of the technology. While neither Party has an obligation to enter
into the Joint Venture, the Parties hope to complete the Joint Venture on or
before January 15, 2009.
    It is contemplated that the Joint Venture would include a series of gated
and milestone driven investments by Suncor towards the commercial
demonstration cellulosic ethanol facility and the comprehensive terms and
conditions governing the structure and the respective commercial interests of
the Parties. It is envisaged that Suncor would have a controlling interest in
the Joint Venture.
    "We are delighted to continue working closely with Suncor on the scale-up
of this next generation biofuels technology. Suncor's experience in pioneering
process technologies within the liquid transportation fuels sector, coupled
with their expertise in deploying world scale energy projects, will be a
tremendous asset in taking our technology through its evolution from pilot to
commercial scale," said Ross MacLachlan, President and Chief Executive Officer
of Lignol.
    Suncor Energy Inc. is a significant investor in renewable energy in
Canada, with more than $250 million invested to date in wind energy and
    "We're proud of Suncor's leadership in the biofuels industry," said Ian
Savill, Vice President Energy Supply and Biofuels, Suncor. "Suncor was a
leader in the success of Canada's oil sands industry and we're continuing that
pioneering spirit to advance key renewable energy and biofuels technologies
and bring them to a commercial scale. We believe that Lignol's technology with
its enhanced greenhouse gas attributes and the ability to utilize agricultural
and wood waste may be the next step forward in ethanol production."
    Lignol has completed construction of its industrial-scale biorefinery
pilot plant in Burnaby, B.C. and is currently completing a staged plant
commissioning process. Once fully commissioned, Lignol will move ahead with
scheduled trials to optimize current engineering designs for commercial scale
plants. Lignol will also accelerate work underway with companies seeking to
evaluate their leading-edge enzymes and novel organisms in an industrial
setting. The facility is expected to have a production capacity of
100,000 litres of ethanol per year and will be one of only a few fully
integrated cellulosic ethanol biorefineries currently operating in the world.

    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, originally developed by a
former affiliate of General Electric, 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 HP-L(TM).
Lignol is executing on its development plan through strategic partnerships 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

    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 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 the planning and development of our cellulosic
ethanol commercial demonstration plant in Colorado, 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 finance 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 complexity of the development of the commercial demonstration
plant, 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.

    %SEDAR: 00004360E

For further information:

For further information: Lignol Energy Corporation: Paul Hughes, Vice
President Corporate Development & Communications, Tel: (604) 222-9800 ext.
110, Email:, Email:; Bruce Wigle, Investor
Relations, The Equicom Group, Tel: (416) 815-0700/1-800-385-5451 ext. 228,

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