A cellulosic ethanol demonstration plant is planned for Grand Junction, Colorado.

Lignol Energy Corporation has received approval from the U.S. Department of Energy to locate the facility on the western slope of Colorado. The approved location is a change from the originally proposed site adjacent to Suncor Energy refinery in Commerce City, Colorado. According to the company, the Grand Junction location offers logistical advantages including access to feedstock and ethanol distribution efficiencies.

In January 2008, the DOE approved Lignol’s funding application for a proposed cellulosic ethanol plant, including up to $30 million in funding to construct the facility. The proposed facility will be designed to process hard and soft woods and agricultural residues such as straw and corn stover.