VANCOUVER, Jan. 17, 2014 /CNW/ - Lignol Energy Corporation
(TSXV: LEC) ("LEC" or the "Company") today announced that Territory
Biofuels Limited ("TBF") has recently received International
Sustainability and Carbon Certification ("ISCC") and US
Environmental Protection Agency ("EPA") approval as a Renewable
Identification Number ("RIN")-generating foreign producer for its
Darwin biodiesel plant, paving the way for exports to markets in
Europe and the US.
"These approvals are critical achievements for
the restart of profitable operations for our Darwin plant. The
ability to sell the output of up to 140 million litres per year
into multiple global markets with these certifications in hand
substantially enhances the long term economic sustainability of
this world scale project", said Ross
MacLachlan, Chairman and CEO of LEC.
The ISCC process involved TBF formalizing its
Management Systems Review which covers a broad range of operating
activities including track and trace feedstock management, training
and reporting. A detailed lifecycle analysis of greenhouse gas
emissions was also undertaken to confirm the Darwin project's
compliance with ISCC requirements. The certification allows TBF to
process approved ISCC feedstocks into ISCC approved biodiesel that
can be sold at a premium into the European market. More
information on the European ISCC program can be found at:
http://www.iscc-system.org/en/
The US EPA has confirmed that TBF's facility has
met the requirements to be a RIN foreign producer generator. The
approvals required the submission of a detailed independent
engineering review that covered the technology, construction,
capacity, emissions and product quality of the facility. In
addition, TBF's storage and independent testing contractors have
been approved. The approval allows TBF to manufacture biodiesel
from approved feedstocks and generate a RIN which enables the
biodiesel to be sold competitively in the USA market. The facility also qualifies as a
"grandfathered" plant which provides TBF an additional opportunity
to generate a RIN from palm oil based biodiesel. More information
on the US EPA Renewable Fuel Standard program can be found
at:
http://www.epa.gov/otaq/fuels/renewablefuels/index.htm
LEC recently announced it has agreed to acquire
all of the outstanding and issued ordinary shares of TBF, thereby
increasing its ownership of TBF from 55% to 100%.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
About Territory Biofuels Limited
TBF owns a large scale biorefining facility
located in Darwin, Northern Territory which includes a
Lurgi-designed biodiesel plant and the largest glycerine refinery
in Australia. The facility was
commissioned in 2008 at a cost of A$80
million, along with 38 million litres of related tankage,
now leased by TBF. The biodiesel plant is the largest in
Australia with a rated capacity of
140 million litres per year. The plant was originally built to run
on palm oil and food-grade vegetable oil, however the plant was
shut down in 2009 due to challenging technical and economic
conditions. TBF is in the process of raising funds to restart the
existing facility utilizing environmentally certified, Refined
Bleached & Deodorized (RBD) palm oil. In 2015, TBF plans to
integrate new feedstock pre-treatment technologies and catalysts to
process a broader range of feedstocks such as lower quality tallow,
used cooking oil and palm sludge oil; a waste product from palm oil
mill extraction.
About Lignol Energy Corporation
Lignol Energy Corporation is an emerging
producer of biofuels, biochemicals and renewable materials from
waste. LEC is in the process of increasing its ownership of
Territory Biofuels Limited from 55% to 100% by the end of
January 2014. LEC also owns
100% of Lignol Innovations Ltd. ("LIL"), 21% of Australian
Renewable Fuels Limited ("ARW"), 51% of Neutral Fuels (Melbourne) Pty Ltd ("Neutral Fuels Melbourne")
and 20% of Neutral Fuels Parent Company Ltd ("Neutral Fuels"). The
Company intends to invest in, or otherwise obtain, equity interests
in energy related projects, which have synergies with the Company
and have the potential to generate near term cash flow. Further
information is available on the Company's website at
www.lignol.ca.
Caution concerning forward-looking
statements:
Certain statements contained in this document
may constitute forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or
information include, without limitation, statements or information
about the ability of TBF to produce and market its products to
Europe and the United States following its recently
received ISCC and US EPA approval as a RIN-generating foreign
producer, LEC's ability to complete the purchase of the remaining
ordinary shares of TBF from the other TBF shareholders, and TBF's
ability to finance, restart and profitably operate its 140 million
liter per year biodiesel plant and glycerine refinery. Often, but
not always, forward looking statements or information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes" or variations of such words and phrases or words and
phrases that state or indicate that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved.
Such statements or information reflect LEC's
current views with respect to future events and are subject to
certain risks, uncertainties and assumptions including, without
limitation, TBF's ability to profitably produce and sell products
which meet the specifications of its recent ISCC and US EPA
certifications including its ability to generate a RIN from palm
oil based biodiesel, LEC's ability to raise additional capital to
fund operations and to support the capital requirements of its
affiliates, TBF may in the future issue shares in connection with
the raising of capital or the repayment of debt or other
obligations, which could result in LEC owning less than 100% of
TBF, TBF's ability to successfully operate the Darwin facility and
to generate revenues and cash flow, TBF's ability to integrate new
pretreatment technologies and catalysts to facilitate the
processing of a broad range of lower cost feedstocks, LEC's ability
to continue as a going concern and to raise additional financing to
fund the operations of LEC and LIL and to support the financing
requirements of TBF and LEC's planned investment in Neutral Fuels,
Neutral Fuels and Neutral Fuels Melbourne's ability to maintain a
profitable working relationship with McDonald's restaurants, LEC's
ability to invest in, or otherwise obtain, equity interests in
energy related projects which have technical and commercial
synergies with the Company and which have the potential to generate
future dividends and near term cash flow, the potential effect of
changes in government policy relating to the environment, and
incentives for renewable fuels, the potential impact of changes in
the prices of feedstock and the market price of liquid fuels
including biodiesel, ethanol and renewable chemicals, the ability
of LEC and its affiliates to generate future profits, to pay
dividends and to meet increasing regulatory requirements, LIL's
ability to finance and complete the development of a commercial
project, LIL's ability to develop products and to obtain off-take
agreements, LEC's reliance on publically available information of
ARW in its evaluation of its acquisition of shares in ARW, the
potential inability to divest the ARW ordinary shares due to modest
trading volumes, the estimated cost of any future TBF capital
investment, and the effect of changes in government policy relating
to energy and the environment.
Many factors could cause LEC's actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward looking statements or
information, including among other things, financial market
conditions which will impact LEC's ability to finance its
operations and to meet future capital and investment requirements,
the demand for the market price of liquid fuels including gasoline,
biodiesel, ethanol, the market price and demand for renewable
chemicals, risks relating to the protection of technology from
infringement and those risk factors which are discussed elsewhere
in documents that LEC files from time to time with securities and
other regulatory authorities. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements or information prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Except as required by law, LEC expressly disclaims any intention or
obligation to update or revise any forward looking statements and
information whether as a result of new information, future events
or otherwise. All written and oral forward-looking statements and
information attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the foregoing cautionary
statements.
SOURCE Lignol Energy Corporation