Lignol Energy Corporation announced the signing of a formal Memorandum of Understanding between M Energy Co. Ltd. and LEC establishing the framework by which the two companies will work together to restart LEC's 140 million litre per year biodiesel plant and incorporate M Energy's proprietary pre-treatment technology. The Parties have been in discussions regarding an investment structure which, if successful, would provide sufficient capital for the Darwin project and an opportunity for M Energy to become an equity partner in the project.

The two companies have collaborated over the past several months to develop a technology and commercial feasibility study on the integration of M Energy's patented pre-treatment solution with the company's Lurgi designed, biodiesel plant located in Darwin Australia. This has involved physical inspections of both the Darwin plant and of M Energy's operating pre-treatment plant in Korea. Samples of feed stocks for the Darwin plant have also been tested and verified to work with the M Energy pre-treatment technology.

The scope of the collaboration also covers marketing rights to M Energy's technology in Australia as well as commercial synergies in feedstock procurement, off takes and sales of biodiesel to export markets.