Lignol announces sale of HP-L lignin to global coatings manufacturer
VANCOUVER, April 24, 2012 /PRNewswire/ - Lignol Energy Corporation (TSXV: LEC) a leading technology company in the advanced biofuels and renewable chemicals sector, today announced that it has reached agreement with a leading global coatings manufacturer for the sale of up to 10 tonnes of Lignol's proprietary HP-LTM lignin to be used for product trials, with the initial 2 tonnes of HP-L lignin having now been delivered.
The sale comes as the culmination of a multi-year joint development program during which Lignol provided test quantities of a variety of lignin derivatives for various epoxy coating formulations. Lignol drew on its unique technology to tailor lignin properties for specific end uses, a capability which Lignol aims to leverage into commercial opportunities to sell HP-L Lignin into a wide range of industries and end-uses.
"Our ability to demonstrate the commercial potential of the products from our biorefinery process through lignin sales is a very important precursor to deployment of our technology", said Lignol's President and Chief Executive Officer, Ross MacLachlan. "This commercial order from a global leader in coating technology, underlines the value offered by HP-L Lignin as a renewable and functional ingredient in chemical products with large scale markets."
Lignol is engaged in a wide range of application development projects with the products of its biorefinery technology at values that will provide attractive returns for commercial projects. As well as incorporating HP-L Lignin into many core products of the chemical industry, such as coatings, resins, binders and thermoplastics, Lignol is also developing high value derivatives from the cellulose fraction of biomass.
Lignol (TSXV: LEC) is a Canadian company undertaking the development of biorefining technologies for the production of advanced biofuels, including fuel-grade ethanol, and other renewable chemicals 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™ lignins. HP-LTM lignin represents a new class of high purity lignin extractives (and their subsequent derivatives) which can be engineered to meet the chemical properties and functional requirements of a range of industrial applications that until now has not been possible with traditional lignin by-products generated from other processes. Lignol is executing on its development plan through strategic partnerships to further develop and integrate its 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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Caution concerning forward-looking statements:
Certain statements contained in this document may constitute forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include, without limitation, statements or information about our ability to continue as a going concern and to raise additional financing to fund operations, our ability to work with CIBC and Capital West to consider a range of sources of investment, including industry and financial investors who have a strategic, long term interest in advanced biofuels, renewable chemicals and forest industry transformation, the development status of our fully integrated pilot-scale biorefinery in Burnaby, British Columbia, the planning and development of a proposed commercial plant, our ability to complete project deliverables which are funded in part by government agencies, our ability to exploit commercial opportunities and broaden our market opportunities for a range of cellulosic derivatives and environmentally sustainable biochemicals including our HP-L™ lignin and lignin derivatives, our ability to supply up to 10 tonnes of HP-L™ lignin to a leading global coatings manufacturer for product trials and our ability to produce HP-L™ lignin that meets agreed customer specifications at commercial scale, and our ability to pursue these opportunities with strategic partners including establishing off-take agreements for our products, our ability to develop high value cellulose applications and obtaining strategic partnership investments and government funding for initial commercial projects. 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 including, without limitation, our ability to establish the validity of our technology at the fully integrated biorefinery pilot plant scale, our ability to satisfy the conditions of existing government grants and to obtain new additional grants, our ability to continue to finance our operations and to finance and complete the development of a commercial project, our ability to develop commercial applications for our products including HP-L™ lignin, and to obtain off-take agreements, our ability to obtain requisite regulatory approvals and our ability to enter into agreements with strategic partners on terms acceptable to us. 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 among other things, the technological challenges that remain to be surpassed in obtaining the necessary operating data from our fully integrated biorefinery pilot plant that is required prior to completing the next scale-up of the technology, financial market conditions which will impact our ability to finance our operations and to finance the construction and operation of a commercial plant, the price of gasoline and demand for ethanol, the market pricing and demand for renewable chemicals, risks relating to the protection of Lignol's core technology from infringement and 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.
SOURCE Lignol Energy Corporation