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Lignol signs letter of intent to explore China biorefinery market

An agreement between Lignol Innovations Ltd. and Sichuan Xilin IM/EX Co. Ltd. of Chengdu, China, provides for the two companies to explore options for cooperation in pursuing opportunities to commercialize Lignol Innovations’ proprietary...


January 15, 2014
By Pulp & Paper Canada

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An agreement between Lignol Innovations Ltd. and Sichuan Xilin IM/EX Co. Ltd. of Chengdu, China, provides for the two companies to explore options for cooperation in pursuing opportunities to commercialize Lignol Innovations’ proprietary biorefining technology in China, and contemplates possible formation of a joint venture company as well as various investment options.

“We are delighted to have signed this LOI with Xilin who are well placed to help us develop the China market for our biorefining technology and its products,” said Ross MacLachlan, CEO and chairman of Lignol Energy, parent company of Lignol Innovations. “We are hopeful that we can leverage the market knowledge and access to feedstock and financial resources of Xilin for our mutual benefit.”

Zeng Ai Guo, chairman and general manager of Xilin, said: “We believe that there is strong business potential for manufacturing biofuels and biochemicals from wood and agricultural residues in China and we look forward to reaching definitive agreements with Lignol to deploy their technology.”

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The letter of intent was executed by Lignol Innovations’ chief operating officer, Michael Rushton, at a signing ceremony last December in Guangzhou, which also involved six other B.C. companies and their Chinese counterparts.

Sichuan Xilin IM/EX Co Ltd. is a privately owned forest products production and import/export company based in Chengdu with sawmill assets in Russia and China. Xilin is mainly focused on forest resource development, timber processing and timber trade, and has millions of acres of forest resources in Russia and China.

Lignol Energy Corporation is an emerging producer of biofuels, biochemicals and renewable materials from waste. Lignol Innovations’ modified solvent-based pre-treatment technology facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including high purity HP-L lignin.