VANCOUVER, BC — Lignol Energy Corporation, a leading technology company in the cellulosic ethanol sector, yesterday announced a Memorandum of Understanding with Novozymes, a leading producer of industrial enzymes, in which the parties have established the framework of a multi-year collaboration agreement to optimize the latest generation of Novozymes' enzymes for use in Lignol's cellulosic biofuel process.

Lignol plans to construct large-scale biorefineries for the production of cellulosic biofuel from wood chips and forestry residues. Novozymes supplies enzymes that convert cellulosic biomass into sugars that can then be fermented into ethanol. The parties plan to use Lignol's fully integrated industrial-scale pilot plant in Burnaby, British Columbia, to optimize enzyme performance across a range of cellulosic feedstocks in Lignol's unique process.

The announcement follows progress between the parties which has resulted in significant improvements in the conversion of woody biomass to ethanol. More information on the technical and economic achievements to date was to be provided at the U.S. National Ethanol Conference on February 16, 2010 in Orlando, Florida.

"We are excited with the opportunity to collaborate with the world's leading enzyme producer to optimize their latest technology for Lignol's unique substrate. In so doing, we are removing a critical cost barrier to the commercialization of cellulosic ethanol. This marks a major step for our industry in achieving the cellulosic biofuel objectives set out by various governments throughout the world," said Lignol President and CEO, Ross MacLachlan. "Our integrated plant is perfectly suited for this type of collaboration in which our industrial process is coupled with Novozymes' biological technology to make cellulosic ethanol a commercial reality."

Read more on Novozymes at www.novozymes.com. For more information about Lignol, visit www.lignol.ca.

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