Lignol Receives Funding from the US Department of Energy ("DOE")
VANCOUVER, Sept. 29 - Lignol Energy Corporation (TSX-V: LEC), a leading technology company in the cellulosic ethanol, biochemicals and biorefining sector, is pleased to report that its U.S. based subsidiary, Lignol Innovations Inc. ("Lignol" or "the Company") has been informed by the DOE, of a modification to its Cooperative Agreement (the "Agreement") whereby approximately US$4.0 million (previously US$1.56 million) has now been obligated by the DOE as a contribution in phase one of the Agreement. Of this obligated amount, US$0.34 million has recently been received by Lignol and approximately US$1.2 million is currently available to be claimed in respect of expenses incurred to date. A further US$0.46 million is expected to be made available shortly by the DOE. The balance of the obligated amount of approximately US$2.0 million, is subject to Lignol achieving certain project development milestones.
On October 28, 2008 Lignol announced that it had signed a US$30 million Agreement with the DOE relating to the construction of a commercial demonstration cellulosic ethanol plant. The first phase of the Agreement relates to the development and design phase leading up to construction; including preliminary plant engineering and design as well as environmental documentation and permitting. Upon the satisfactory completion of the milestones outlined within the first phase of the Agreement, the second phase of funding will commence with the DOE contributing up to fifty percent of total plant construction costs up to a maximum of US$26 million. As with many similar federally funded programs, such contributions are subject to the availability of appropriated funding for each fiscal year.
