Lignol Energy Corporation V.LEC

News..Lignol Very Optimistic

[TheRock07]

Lignol Energy optimistic about commercial project

2011-03-31 08:55 ET - News Release


Mr. David Turner reports

LIGNOL PROVIDES UPDATE ON MARKET DEVELOPMENTS AND COMMERCIALIZATION PLANS

Lignol Energy Corp. is providing an update on market developments and its commercialization plans in light of recent industry trends and current policy and legislative developments.

Following the financial downturn of 2009 and the gradual recovery in 2010, Lignol now sees improved opportunities for the deployment of its biorefining technology in domestic and international markets. Positive drivers for commercial deployment include the sustained increase in the price of crude oil, proposed amendments to certain government programs which support commercial scale projects, renewed investor interest in the advanced biofuels sector and advancements in Lignol's proprietary process.

"These external market developments represent a promising opportunity for Lignol and our current priority remains to develop a commercial project with a consortium of strategic partners", said Ross MacLachlan, President and CEO of Lignol. "The size of such a project will balance the need to develop a commercial project with a structure that best maximizes value for our shareholders", he added.

Rising crude oil prices have revived interest in advanced biofuels and renewable chemicals. While oil pricing volatility continues, there is a growing consensus that advanced biofuels will have a key role to play in the quest for energy security and job creation. The last several months have seen several successful financings of technology developers in this space at substantial valuations.

Lignol has continued to develop its US Department of Energy (DOE) funded commercial demonstration project. The Company continues to seek industry partners and an alternative location for a viable project. Continued access to DOE funding is subject to Lignol developing a financeable project as well as ongoing appropriations and funding for The Office of Biomass Program from the US Congress. The prospects of government funding continuing for commercial projects are tempered with the fact that most programs are subject to annual appropriations and there is substantial pressure on government agencies to revise their funding priorities.

Recent amendments to the US Department of Agriculture (USDA) Biorefinery Assistance Guaranteed Loans program will make loan guarantees more accessible for companies like Lignol, enabling them to obtain commercially reasonable terms for debt on a first-of-kind commercial project. Commercial projects awarded a loan guarantee and developed under this program can be expected to require equity from Lignol and its partners in the range of 30% of total project costs. To commercialize its biorefining technology and to gain market entry for its lead renewable chemical products Lignol anticipates submitting applications under this, or similar programs in domestic and international markets, in the near future.

[TheRock07]

TD, which was unloading a position, drove the share price downwards from its highs.That position is now tapped out, so we should move to new highs due to substantial material developments already achieved. Lignol's modified solvent based pre-treatment technology has been demonstrated to  facilitate the rapid, high-yield conversion of cellulose to ethanol and the production of

[chalkmarks]

There is very little paper overhead anymore.On significant news, we should pop to the upper teens and possibly to the .25 level - who knows?This could turn out to be the breakout year for Lignol, owner of technologically significant intellectual property.I'm in an overweight position and holding tight.DYODD