Novozymes and Lignol sign wood biofuel deal

June 15,
2010, Bagsvaerd, Denmark – Novozymes and Lignol Energy Corporation have signed
a research and development agreement to make biofuel from wood chips and other
forestry residues. The partners aim to develop a process for making biofuel
from forestry waste and bring the production cost down to $2 per gallon, a price
competitive with gasoline and corn ethanol at the current U.S. market prices.

“Novozymes’
goal is to enable commercial production of cellulosic biofuel from a wide range
of feedstocks,” says Claus Crone Fuglsang, senior director of bioenergy research
and development for Novozymes. “Lignol is an industry frontrunner, and our work
together over the past couple of years has reinforced a shared vision to
produce energy and value from wood waste.”

Together,
Lignol and Novozymes have the necessary know-how to turn wood residues into
fuel. Lignol has pre-treatment technology for dealing with woody biomass. In
February 2010, Novozymes launched enzymes that enable commercial production of
biofuel from plant waste. The enzymes convert cellulose in biomass into sugars
that can be fermented into ethanol. The parties plan to use Lignol’s industrial
pilot plant in Burnaby, British Columbia, to optimize both Lignol’s process and
Novozymes’ enzymes on various types of forestry waste. Later, Lignol plans to
construct large-scale biorefineries for the production of cellulosic biofuel
from wood chips and forestry residues.

“The
progress we have achieved to date with enzymes from Novozymes is extremely
promising and a successful outcome of this collaboration should position us to
produce cellulosic ethanol from woody biomass profitably and without the need
for long term government subsidies,” says Lignol president and CEO, Ross
MacLachlan.

The
agreement between Lignol and Novozymes formalizes a memorandum of understanding
between the partners from February 2010.