Vancouver's Lignol Energy Corp. (TSX-V:LEC), which develops ethanol production technology, has been given the green line to build a demonstration ethanol plant in Colorado.
The approval from the U.S. Department of Energy is for the plant to be located in Grand Junction, Colorado, instead of the originally proposed site adjacent to Suncor Energy's refinery in Commerce City, Colorado.
Lignol's plant will be operated by Suncor and built next to Suncor's products distribution terminal in Grand Junction.
The proposed facility will be designed to process hard and soft woods and agricultural residues, including straw and corn, to produce fuel-grade ethanol. It will have the capacity to process an estimated 100 tonnes of feedstock per day and produce approximately 10 million litres of ethanol a year.
Lignol's share price range during the past week: between $0.31 and $0.37; 52-week high: $1.29; 52-week low: $0.30.