Lignol receives $30-million (U.S.) government handout
2008-01-29 16:59 MT - News Release
Mr. Ross MacLachlan reports
LIGNOL AWARDED UP TO US$30 MILLION IN FUNDING FROM U.S. DEPARTMENT OF ENERGY TO BUILD CELLULOSIC ETHANOL PLANT
Lignol Energy Corp.'s U.S. subsidiary, Lignol Innovations Inc., has been awarded up to $30-million (U.S.) in funding from the U.S. Department of Energy (DOE) to build a commercial demonstration cellulosic ethanol plant. The DOE has approved a funding application submitted by Lignol Innovations for a proposed plant which is planned to be operated by Suncor Energy (U.S.A.) Inc., which owns and operates a major refinery in Commerce City, Colo.
"We believe our successful application for DOE funding further validates the commercial potential of our unique biorefining process," said Ross MacLachlan, president and chief executive officer of Lignol Energy. "Through its cellulosic ethanol and biofuels funding program, the DOE is seeking projects that demonstrate potential to rapidly move to commercial-scale using breakthrough technologies, a sound business strategy, and collaboration between industry, universities and the DOE's national laboratories. We look forward to advancing this project with support from the DOE and our industry partners."
Lignol and Suncor will work together to finalize the site-specific plans and engineering and to determine the optimum plant location in order to leverage Suncor's Colorado-based marketing and operating capabilities. Suncor has a number of suitable properties in Colorado for this development, including Commerce City. Lignol and Suncor have yet to consider all of the details with respect to the final funding agreement and the determination of final dates for construction, however the DOE funding requires that the plant must be completed by 2012. Once completed, the plant is expected to produce in excess of two million gallons per year of cellulosic ethanol, plus biochemical co-products, including high purity-lignin. Suncor will be the operator of the plant and the exclusive buyer of all of the ethanol produced. Plant capacity is expected to be 100 tons per day (dry basis) of hardwood and softwood feedstock. Lignol Innovations' proprietary solvent pretreatment process, integrated with saccharification, fermentation and product recovery processes, also has the capability to process agricultural residues and other feedstocks.
In May, 2007, the DOE announced that it will provide up to $200-million (U.S.) over five years to support the development of small-scale cellulosic biorefineries in the United States, under its cellulosic ethanol and biofuels funding program. Lignol Innovations announced that it had submitted a formal application to the DOE in August, 2007, for a grant of up to $30-million (U.S.). The DOE's announcement today represents the first round of funding ($114-million (U.S.) in total) awarded as part of the DOE's small-scale biorefinery funding program. Through this funding initiative, the DOE intends to support projects to develop biorefineries at 10 per cent of commercial scale that produce liquid transportation fuels such as ethanol, as well as bio-based chemicals and bioproducts used in industrial applications. Building on President Bush's goal of making cellulosic ethanol cost competitive by 2012, these 10 per cent of commercial-scale biorefineries will use a wide variety of feedstocks and test novel conversion technologies to provide data necessary to bring on-line full-size, commercial-scale biorefineries. Successful applicants are expected to have their projects operational within three to four years of DOE funding approval.
For further information on the DOE's small-scale biorefinery funding program, please refer to the DOE website.
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