Lignol wins US funds for Colorado bio plant
Feb 19, 2008 11:31 AM
Lignol Innovations Inc has been awarded up to $30 million in funding from the US Department of Energy to build a commercial demonstration cellulosic ethanol plant in Colorado, according to Lignol Energy Corporation Burnaby, British Columbia, Canada, parent of Lignol Innovations.
Once completed, the plant is expected to produce in excess of two million gallons per year of cellulosic ethanol, plus biochemical co-products, including high purity-lignin.
DOE approved the funding for the proposed plant to be operated by Suncor Energy (USA) Inc, which owns and operates a refinery in Commerce City.
Lignol and Suncor will work together to finalize the site specific plans and engineering and to determine the optimum plant location in order to leverage Suncor's Colorado-based marketing and operating capabilities, according to Lignol information.
Suncor has a number of suitable properties in Colorado for the development, including Commerce City. Lignol and Suncor have yet to consider all of the details with respect to the final funding agreement and the determination of final dates for construction. However, the DOE funding requires that the plant must be completed by 2012, according to Lignol.
Suncor will be the exclusive buyer of all of the ethanol produced. Plant capacity is expected to be 100 tonnes (110 tons) per day (dry basis) of hard and soft wood feedstock. Lignol Innovations' proprietary solvent pretreatment process, integrated with saccharification, fermentation, and product recovery processes also has the capability to process agricultural residues and other feedstocks.
In May 2007, the DOE announced that it will provide up to $200 million, over five years to support the development of small-scale cellulosic biorefineries in the United States under its cellulosic ethanol and biofuels funding program. Through this funding initiative DOE intends to support projects to develop biorefineries at 10 percent of commercial scale that produce liquid transportation fuels, such as ethanol, as well as bio-based chemicals and bioproducts used in industrial applications.
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