Petrobras to optimize KLE’s cellulosic ethanol technology

Brazilian state-run energy company Petroleo Brasileiro (Petrobras) signed a contract with KL Energy Corp. (KLE), to optimize KLE’s proprietary cellulosic ethanol process technology for sugarcane bagasse feedstock. Under the deal, the company will invest US$11 million to adapt KLE’s facility in Wyoming to the use of bagasse and validate the optimized process by producing cellulosic ethanol. KLE develops and commercializes second-generation cellulose-based energy products, including ethanol and high-energy lignin pellets. In parallel, Petrobras and KLE will jointly work on an industrial scale bagasse-based cellulosic ethanol plant project that shall be fully integrated into a sugarcane mill belonging to the Petrobras Group in Brazil. This plant is slated to go on stream in 2013 and will be capable of producing 15 million liters of ethanol per year. (August 26, 2010)