VANCOUVER, June 6 /CNW/ - Lignol Energy Corporation (TSX-V: LEC) ("Lignol") today announced that its U.S. subsidiary, Lignol Innovations Inc., has filed a letter of intent ("LOI") with the U.S. Department of Energy ("DOE") regarding a funding application for US$30 million under the DOE's cellulosic ethanol and biofuels funding program. Under the program, the DOE intends to make up to US$200 million in funding available over the next five years to support the development of small-scale cellulosic biorefineries in the United States. Successful applicants are expected to have their projects operational within three to four years of DOE funding approval.
"Through this funding program, the DOE is seeking to identify companies that can successfully develop biorefineries at approximately ten percent of commercial scale that can produce liquid transportation fuels such as ethanol, as well as bio-based chemicals and bioproducts used in industrial applications," said Ross MacLachlan, President and CEO of Lignol. "In the coming months, we will carefully evaluate this opportunity and other funding opportunities as they arise".
The filing of the LOI under the DOE funding program is the first step in the funding application process. If Lignol proceeds with its application, a formal application must be submitted to the DOE by August 14, 2007. The DOE expects to announce the successful funding applicants by February 2008.
For more information on the DOE's cellulosic ethanol and biofuels funding program, please refer to the news release titled "DOE Announces up to $200 million in Funding for Biorefineries" via the DOE's web site at: http://www.energy.gov.
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, 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 High Purity Lignin (HPL). Lignol is executing on its development plan with several major 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
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