31 Januar 2013

Lignol Energy Corporation announces first commercial supply agreement for HP-L lignin in the thermoplastics sector

Lignin to get higher values when incorporated into core products of the chemical industry

Lignol Energy Corporation, a leading technology company in the advanced biofuels and renewable chemicals sector, today announced that its wholly owned subsidiary, Lignol Innovations Ltd. (“LIL”) has secured a commercial supply agreement with a market leader in the sustainable thermoplastics industry.

The agreement provides for the supply of LIL’s proprietary HP-LTM lignin to a European company, a global leader in sustainable thermoplastics, 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 Chief Executive Officer, 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.

About Lignol Energy Corporation (“LEC”)
LEC (TSXV: LEC) owns 100% of the issued and voting shares of Lignol Innovations Ltd. (“LIL”) and currently owns a 14.9% stake in Australian Renewable Fuels Ltd. LEC also intends to invest in, or otherwise obtain, equity interests in energy related projects which have synergies with its biorefining technology.
LIL is a leading technology company in the advanced biofuels and renewable chemicals sector 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. LIL’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-LTM 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 byproducts generated from other processes. LIL is executing on its development plan through strategic partnerships to further develop and integrate its core technologies on a commercial scale.

About ARW
ARW is the largest biodiesel producer in Australia owning three plants with a total nameplate capacity of 150 million litres per annum. ARW’s three plants were built at an aggregate cost of approximately A$150 million. ARW has made significant changes in recent years to become a cost effective producer of high quality biodiesel to address growing biofuel demand in the Australian market. ARW has recently announced a proposed transaction to raise A$14 million in cash, which if successful will dilute LEC’s interest to approximately 10 percent.

Source: Lignol Energy Corporation, press release, 2013-01-31.

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