Vancouver's Lignol Energy Corp. (TSX-V:LEC) and subsidiaries of Suncor Energy Inc. (TSX, NYSE: SU) have cancelled a joint venture to produce a commercial ethanol demonstration plant in Grand Junction, Colorado.
Lignol, which produces ethanol from wood waste, said instability of energy prices, uncertainty in the capital markets and general market malaise were the main reasons for shelving the project.
Lignol had been working with Suncor for the past three years and announced plans last October to build a US$80 million demonstration plant in Grand Junction. The project was in connection with a US$30 million grant from the U.S. Department of Energy.
Lignol said it's exploring alternatives for the Department of Energy grant, which include other site locations and partners.
Lignol's share price range during the past week: between $0.09 and $0.145; 52-week high: $1.11; 52-week low: $0.07.