Jun 26, 2012

KL Energy and Petrobras SA extend joint development agreement for cellulosic ethanol from bagasse 25 June 2012 KL Energy Corporation successfully completed the first phase of the work program under the Joint Development Agreement (JDA) with Petrobras America, Inc. signed on 23 August 2010.All cellulosic ethanol produced from sugarcane bagasse in KLE’s demonstration plant in 2011 has been shipped to Petrobras SA in Brazil; KLE recorded the first cellulosic ethanol RIN credits issued by US Environmental Protection Agency (EPA). Having met all technology milestones and ethanol production targets, Petrobras and KLE decided to extend the scope of the JDA. Under the terms of the extended JDA, KLE upgraded its demonstration plant, expanded production process validations and added on-site yeast production capabilities. The plant now represents the design of future commercial plants, with one tenth of the planned capacity, engineered for integration with Brazilian sugarcane mills. Throughout most of the balance of 2012, KLE will process sugarcane bagasse into fuel spec ethanol. On 17 April 2012, as provided by the JDA, KLE signed a Technology and Patent License Agreement with Petrobras, which licenses KLE’s cellulosic ethanol technology to Petrobras for the use in any of its Brazilian sugarcane production assets.