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Press Release

Lignol develops first renewable chemical product

Canada NewsWire

  • High-Performance Lignin used successfully in resin adhesive to make Oriented Strand Board
  • Resin adhesive meets or exceeds Canadian and U.S. industry quality standards
  • Lignol's strategy to develop commercial applications for green chemicals delivering results

VANCOUVER, April 11 /CNW/ - Lignol Energy Corporation ("Lignol", TSX-V: LEC), a leading technology company in the advanced biofuels and renewable chemicals sector, today announced the development and trials of its first renewable chemical product, a resin adhesive formulation using Lignol's High-Performance Lignin (HP-LTM), for making Oriented Strand Board ("OSB").

"The successful development and trial of our first renewable chemical product based on our High-Performance Lignin is an exciting milestone for our company," said Ross MacLachlan, President and CEO. "This achievement demonstrates that our strategy to develop commercial applications for the green chemicals produced at our pilot-scale biorefinery is delivering results."

"For Lignol, this paves the way to enormous worldwide markets for High-Performance Lignin formulations in other applications like particleboard, plywood and MDF for the composite wood products industry. The potential volumes needed to supply these markets would require production from multiple commercial-scale Lignol biorefineries," added MacLachlan.

Lignol's proprietary resin adhesive formulation is a hybrid resin system that contains derivatives of the company's HP-LTM lignin for use in the manufacture of the core layer of OSB. OSB is a widely used composite wood board material used throughout the North American construction industry.

"Until now, only limited success has been achieved using standard lignin in resins for use on the surface of OSB boards. Those lignin resins lacked the strength required to function in the core of OSB to meet industry quality standards," said Dr. Jim Dangerfield, Executive Vice President of FPInnovations. "Lignol's hybrid lignin resin system is a technological breakthrough which offers OSB manufacturers a new adhesive made with significant renewable material content for the core layer of OSB that's cheaper and greener with great performance," added Dr. Dangerfield.

Board trials of Lignol's HP-LTM resin adhesive system were conducted by FPInnovations, a globally respected forest products research institute. In the most recent trial, twenty 4 by 8 foot, 7/16 inch thick oriented strand boards made from Aspen were produced by FPInnovations at the Alberta Tech Futures facility using Lignol's new HP-LTM resin adhesive system for the core layer. This novel resin, which contains renewable components blended with polymeric methylene diphenyl diisocyanate (pMDI), provides a cost competitive solution for OSB producers looking to increase the use of environmentally sustainable inputs in their manufacturing process.

Tests conducted by FPInnovations showed that OSB containing Lignol's HP-LTM resin adhesive met or exceeded Canadian and U.S. industry quality standards.

Working together with FPInnovations, Lignol is engaging industry partners to complete the development and commercialize its new HP-LTM resin adhesive technology.

About Lignol

Lignol (TSX-V: LEC) is a Canadian company undertaking the development of biorefining technologies for the production of advanced biofuels, including fuel-grade ethanol, and renewable chemicals 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 renewable chemicals, including high purity HP-L™ 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 by-products generated from other processes. Lignol is executing on its development plan through strategic partnerships to further develop and integrate its 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, please visit Lignol's website at

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution concerning forward-looking statements:

Certain statements contained in this document may constitute forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include, without limitation, statements or information about our ability to continue as a going concern and to raise additional financing to fund our Baseline Operations (as defined in the Company's Management's Discussion & Analysis of Financial Condition and Results of Operations for the three months ended January 31, 2011), the development status of our integrated pilot-scale biorefinery in Burnaby, British Columbia, our ability to realize the benefits of our improved process, AlcellPlusTM, our ability to drive down capital and operating costs, our ability to successfully defend our patent applications and to receive approval for the claims submitted, the planning and development of our proposed cellulosic ethanol commercial demonstration plant, our ability to exploit commercial opportunities and broaden our market opportunities for a range of cellulosic derivatives and environmentally sustainable renewable chemicals, including our HP-LTM lignin and lignin derivatives and our ability to pursue these opportunities with strategic partners, our ability to commercialize our novel resin formulations for OSB and composite wood products, the ability of Lignol and Novozymes to successfully complete our joint development program, the retention and receipt of future funding by way of government awards and corporate contributions, and our ability to obtain additional project support in the form of loan guarantees. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements or information reflect Lignol's current views with respect to future events and are subject to certain risks, uncertainties and assumptions including, without limitation, the technological challenges that remain to be surpassed in obtaining the necessary operating data from our pilot-scale biorefinery that is required prior to completing the next scale-up of the technology, our ability to satisfy the conditions of existing government grants and to obtain new additional grants, the timely receipt of funding under various government awards and corporate contribution agreements, our ability to continue to finance our Baseline Operations and to finance and complete the development of a commercial demonstration plant, our ability to develop commercial products, our ability to scale and commercialize Lignol's proprietary resin adhesive formulation using  HP-LTM lignin for making Oriented Strand Board and other composte wood products, our ability to obtain requisite regulatory approvals and our ability to enter into agreements with strategic partners on terms acceptable to us. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and changes in government regulation. Many factors could cause Lignol's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or information, including among other things, the complexity of the development of the commercial demonstration plant, market conditions which will affect our ability to finance our operations, the price of gasoline and demand for ethanol, the market pricing of renewable chemicals, risks relating to the protection of Lignol's core technology from infringement and those risk factors which are discussed elsewhere in documents that Lignol files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements or information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.

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