Lignol, Novozymes continue with cellulosic ethanol

Mar. 18, 2011, Vancouver – Lignol Energy’s
wholly owned subsidiary, Lignol Innovations, has recently completed a major
body of work with Novozymes in producing cellulosic ethanol at Lignol's
pilot-scale biorefinery. Lignol and Novozymes had previously announced a joint
research and development agreement to make biofuel from wood chips and forestry
waste with the aim of producing cellulosic ethanol at production costs
competitive with gasoline and corn ethanol. The first phase of the project,
which included producing cellulosic ethanol from hardwood at Lignol's
pilot-scale biorefinery, has been successfully completed. These joint efforts
have resulted in the achievement of interim targets, establishing baseline
production costs for the next phase of the project, which will focus on enzyme
and substrate optimization with the objective of achieving the overall cost
reduction targets.

"The achievement of this operational
milestone with Novozymes is an important accomplishment and puts us one step
closer to meeting our operating cost targets for a commercial
biorefinery," says Ross MacLachlan, president and CEO of Lignol.
"Over the coming months, we will continue to work closely with Novozymes
with the objective of further reducing the cost of producing cellulosic ethanol
from hardwoods and laying the foundation for large scale commercial
deployment.”