Blue Sugars Corp. and Petrobras SA extend Joint Development Agreement

Blue Sugars Corp., formerly KL Energy Corp., the first company to globally produce ethanol from sugarcane bagasse, has successfully completed the first phase of its work program under the Joint Development Agreement (JDA) with Brazil’s Petrobras SA. Blue Sugars has shipped to Brazil all of the cellulosic ethanol produced from sugarcane bagasse in its demonstration plant. Blue Sugars prides itself as the first company to record cellulosic ethanol renewable identification number (RIN) credits issued by the U.S. Environmental Protection Agency (EPA). After accomplishing all the goals of the JDA, Petrobras and Blue Sugars decided to extend the scope of the JDA. Blue Sugars’ demonstration plant was upgraded, the production process validations have been expanded, and on-site yeast production capabilities were added in compliance with the terms of the extended JDA. As a result of the upgrades, the demonstration plant now has onetenth of the planned capacity and has been engineered for integration with Brazil’s sugarcane mills. For most of this year, Blue Sugars will process sugarcane bagasse into fuel spec ethanol. As provided for in the JDA, on April 17, 2012, Blue Sugars (KLE) and Petrobras signed a Technology and Patent License Agreement, which licenses the cellulosic ethanol technology to Petrobras for use in any of its sugarcane production assets in Brazil. (June 25, 2012)