Lignol Energy and HA International Announce Joint Product Development Agreement for High Purity Lignin HP-L™
Vancouver, B.C. / Westmont, Illinois – September 11, 2008 – Lignol Energy Corporation (“Lignol”) (TSX-V: LEC) a leading technology company in the cellulosic ethanol and biorefining sector, and HA International (“HAI”), North America’s largest supplier of products for foundry core and mold production, today announced a Joint Development Agreement (the “Agreement”) for the development of commercial applications incorporating Lignol’s unique, High-Purity Lignin HPL™ (“HP-L™”) in foundry binders and associated applications.
The Agreement sets forth a program to incorporate Lignol’s renewable and sustainable HP-L™ into existing and potentially new foundry binder applications of HAI. The Agreement includes an exclusive conditional supply agreement for a substantial portion of the lignin output from the proposed Lignol commercial demonstration plant, whose terms shall be effective upon the successful conclusion of the joint development program and the construction of Lignol’s commercial demonstration plant.
“The development of products containing renewable and sustainable materials that have environmental benefits is a major objective of HAI’s EcoMission program for the foundry industry and is consistent with the industry’s commitment to sustainability,” said Keith McLean, President of HA International.
“The potential revenues associated with such Supply Agreements are an important component of the overall revenues and economic returns that can be derived from the Lignol biorefinery process,” said David Turner, Executive Vice President of Lignol.
"This Agreement demonstrates continued progress in the development of potentially large-scale commercial applications for Lignol’s HP-L™ . HAI has tremendous experience and market access as the largest supplier of foundry binders in North America, and we are delighted to be working with them to create novel environmentally sustainable product,” added Dr. William Armiger, Lignol’s VP Specialty Chemicals.
In converting non-food cellulosic biomass feedstocks, such as agricultural residues and forestry waste, into ethanol, the Lignol biorefining process fractionates the biomass, and extracts lignin, which naturally occurs in all cellulosic biomass, to produce a range of unique HP-L™ materials. These have been shown to have application in a wide range of industrial products replacing materials typically derived from petrochemicals, with a consequent reduction of greenhouse gas formation.
About HA International (“HAI”)
HA International (HAI) serves the North American foundry industry as the largest supplier of products for core/mold production. HAI offers the North American foundries the most comprehensive range of products supported in three market segments: Resins Systems for bonding sand; Resin Coated Sand (RCS) for the shell process; and Refractory Coatings. Resin systems include: shell resins, ester cured phenolic coldbox and nobake resins, phenolic urethane coldbox and nobake resins, acid curing furan and phenolic resins, hot box resins, and inorganic binders. RCS’s available from HAI include products for general purpose, aluminum, low nitrogen and specialty coated sands such as zircon. Refractory coatings include products for iron, steel, and lost foam applications, and foundry ancillary products such as adhesives and release agents. More information about HAI can be found at www.ha-international.com
Lignol (TSX-V: LEC) is a Canadian company undertaking the development of biorefining technologies for the production of fuel-grade ethanol and other biochemical co-products from non-food cellulosic biomass feedstocks. Lignol’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 a High Purity Lignin HP-L™. Lignol is executing on its development plan through strategic partnerships to further develop and integrate the core technologies on a commercial scale. Lignol also intends to invest in, or otherwise obtain, equity interests in energy related projects which have synergies with its biorefining technology. For more information about Lignol, please visit our website at www.lignol.ca
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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