KL Energy Corporation and Petrobras have entered into a joint development agreement under which Petrobras is to aid KL Energy in further development and optimization of the company's cellulosic ethanol production process technology. KL Energy's previous demonstration project in Wyoming uses Ponderosa Pine feedstock, but the new and improved process will allow multiple feedstock sources at the same time, optimizing the production process.

Petrobras will fund the optimization project with USD 11 million, which will result in KL Energy's facility being able to process bagasse (dusty straw-like residue after squeezing liguid from a crop, for example sugar cane) for the production of cellulosic ethanol and bio-lignin. Along with the optimization project, the two companies will further work on building an industrial scale bagasse cellulosic ethanol plant, fully integrated in an existing sugarcane mill in Brazil, owned by Petrobras.

[source: KL Energy]