Lignol receives DOE approval for ethanol plant location
2008-08-27 09:24 ET - News Release
Mr. Ross MacLachlan reports
LIGNOL CONFIRMS SITE FOR ITS PROPOSED CELLULOSIC ETHANOL PLANT IN COLORADO
Lignol Energy Corp.'s U.S. subsidiary, Lignol Innovations Inc., is moving forward with its previously announced plan to construct a commercial demonstration cellulosic ethanol plant in Colorado. Lignol has recently received approval from the U.S. Department of Energy to locate the facility in Grand Junction, on the western slope of Colorado. The approved location is a change from the originally proposed site adjacent to Suncor Energy (U.S.A.) Inc.'s refinery in Commerce City, Colo.
Lignol is expecting that Suncor will operate the facility, to be built next to Suncor's products distribution terminal in Grand Junction. The Grand Junction location offers logistical advantages, including access to feedstock and ethanol distribution efficiencies. Site specification decisions are subject to regulatory approval.
In January, 2008, the DOE approved Lignol's funding application for a proposed cellulosic ethanol plant, including up to $30-million (U.S.) in funding to construct the facility. Lignol continues to negotiate the final details of the DOE funding agreement and related party agreements.
The proposed facility will be designed to process hard and soft woods, and agricultural residues such as straw and corn stover. Lignol expects the facility, once operational, will process about 100 tonnes of feedstock per day and produce approximately 10 million litres of ethanol per year.
We seek Safe Harbor.
