Lignol Energy (TSX-V:LEC) has signed an agreement with Canada’s leading forest sector innovator to develop new, high-value applications for its cellulose.
The deal would see Lignol partner with FPInnovations for a five-year period to improve the Burnaby company’s biorefinery technology and develop new uses for its highly reactive cellulose, which can be used to produce biofuels, sugar platform chemicals and cellulose-based materials such as textiles and paper.
“The capability to produce high-value cellulose-based materials will enhance the economics of our biorefining platform and diversify the markets for our technology workwide,” commented Lignol president and CEO Ross MacLachlan.
“Several companies have expressed interest in the cellulose derivatives available from our technology.”
FPInnovations is a not-for-profit research and development organization that works with the Canadian forest sector to develop and utilize new technologies to make it more competitive in the global marketplace.
The agreement requires Lignol and FPInnovations to jointly conceive and execute on projects that could later be commercialized.
The deal comes one week after Lignol said the U.S. Department of Energy had cancelled a US$30 million funding deal with the company to develop a pilot-scale biorefinery. (See: “U.S. cuts funding to Burnaby biorefinery builder” – BIV Business Today, July 18.)
At press time, Lignol’s shares were up $0.01 to $0.19.
Joel McKay
Twitter:jmckaybiv