Lignol Energy signs first commercial supply agreement
January 31, 2013, Vancouver, BC – Lignol Energy Corporation announced that its wholly owned subsidiary, Lignol Innovations Ltd. (LIL) has secured a commercial supply agreement with a European company in the sustainable thermoplastics industry.
The agreement provides for the supply of LIL's proprietary HP-L lignin as an ingredient in its commercial products. Previously Lignol had delivered trial samples, which were used for formulation development, customer evaluation and product trials. LIL will supply tonnage quantities of HP-L lignin for this supply agreement and anticipates working with this customer on other product applications, building upon this initial business success.
"Our ability to attract commercial business for HP-L lignin with a global leader in the sustainable thermoplastics sector is a major step towards commercial deployment of our technology", said President and CEO, Ross MacLachlan. "This order in the thermoplastics field complements our own development efforts with the use of HP-L lignin in proprietary polymer applications."
LIL is engaged in a wide range of application development projects with the products derived from its biorefinery technology at values that are expected to provide attractive returns for commercial projects. Most companies in the cellulosic biorefining sector realize only the thermal value for lignin in the range of 5 cents per pound since they burn the lignin fraction (about 25% of the biomass) to provide energy for their process. Conversely, LIL's proprietary HP-L lignin can be sold for significantly higher values when incorporated into many core products of the chemical industry, such as coatings, resins, binders and thermoplastics.