Lignol Energy Corp. has announced that it has entered into a cellulosic ethanol project development agreement with Suncor Energy Products Inc. As part of this agreement, Suncor has agreed to assist Lignol with certain preliminary development work for the previously announced commercial demonstration cellulosic ethanol facility to be located in Grand Junction, Colorado, USA. The Agreement also provides that the Parties negotiate a comprehensive joint venture arrangement to progress the development of Lignol’s technology from the pilot plant stage, to the commercial demonstration plant stage through to the ultimate commercial deployment of the technology. It is envisaged that Suncor would have a controlling interest in the joint venture.The parties hope to complete the joint venture on or before January 15, 2009.