Lignol Awarded $4.72 Million in Funding from SDTC

    VANCOUVER, Sept. 10 /CNW/ - Lignol Energy Corporation (TSX-V: LEC)
("Lignol" or "the Company"), a leading technology company in the cellulosic
ethanol and biorefining sector, today announced that a project led by its
wholly-owned subsidiary, Lignol Innovations Ltd., has been awarded up to $4.72
million in funding contributions from Sustainable Development Technology
Canada ("SDTC").
    This new SDTC supported project builds on Lignol's world-class, fully
integrated, industrial scale pilot plant facility now operating in Burnaby,
British Columbia. The scope of the new work plan is concentrated on further
improving the environmental and economic benefits of Lignol's cellulosic
ethanol technology package. The primary objectives of the work plan are to:
demonstrate new innovative technologies that will greater utilize
hemicellulose derived sugars to enhance ethanol yields; and to demonstrate
industrial, value added applications for Lignol's high purity lignin
("HP-L(TM) Lignin") utilizing a wide range of non-food feedstocks including,
long dead, beetle killed, Lodgepole pine.
    "Canada is committed to investing in new and innovative technologies to
support the development of the renewable biofuels industry in Canada," said
SDTC President and CEO Vicky Sharpe. "These next generation technologies could
generate even greater environmental benefits than traditional renewable fuels
by utilizing a diverse range of non-food feedstock including agricultural
residues and long dead, beetle killed, Lodgepole pine. The technology
developed by Lignol has the potential to bring Canada one step closer to this
goal and to secure its place as a global leader in the production of
next-generation biofuels."
    "Working closely with SDTC over the past few years has resulted in very
tangible results for Lignol. This partnership has culminated in the
establishment of our world-class pilot plant, that has become a showcase to
those looking for technologies that greater utilize the forestry and
agricultural resources available to us here in Canada and indeed across the
world," said Ross MacLachlan, President and CEO of Lignol. "We are striving to
cost effectively produce renewable and sustainable biofuels with the lowest
carbon footprint in the world. SDTC's contribution to this new work plan is
vitally important for us to achieve the three goals of enhancing the economics
of our next generation biorefinery, removing the need for long-term government
subsidies and further improving the GHG footprint of Lignol's technology."

    About SDTC

    Sustainable Development Technology Canada (SDTC) is an arm's-length
foundation created by the Government of Canada which has received $1.05
billion as part of the Government's commitment to create a healthy environment
and a high quality of life for all Canadians. SDTC operates two funds aimed at
the development and demonstration of innovative technological solutions. The
$550 million SD Tech Fund(TM) supports projects that address climate change,
air quality, clean water, and clean soil. The $500 million NextGen Biofuels
Fund(TM) supports the establishment of first-of-kind large demonstration-scale
facilities for the production of next-generation renewable fuels. SDTC
operates as a not-for-profit corporation and has been working with the public
and private sector including industry, academia, non-governmental
organizations (NGOs), the financial community and all levels of government to
achieve this mandate. For more information, please visit:

    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.
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, please visit

    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.
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. 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, amongst 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.

    %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:; The Equicom Group, Bruce
Wigle, Investor Relations, Tel: (416) 815-0700 ext. 228, Email:

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