The U.S. subsidiary of Canada’s Lignol Energy Corporation has filed a formal application for a $30 million U.S. Department of Energy grant to fund the development of a cellulosic ethanol commercial demonstration plant in Colorado.

Lignol Innovations Inc. has also signed a Project Development Agreement with Suncor Energy Products Inc. and its affiliate Suncor Energy to jointly fund the project development costs related to the DOE application.

“This DOE funding program is seeking to identify companies that can successfully develop biorefineries for ethanol and bio-based chemicals for industrial applications in the United States. Working closely with our stakeholders and industrial partners, we have developed a comprehensive application for DOE consideration,” said Ross MacLachlan, President and CEO of Lignol.