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Petrobras, KL Energy extend cellulosic ethanol development agreement

| June 26, 2012

In South Dakota, KL Energy Corporation announced that it has successfully completed the first phase of the work program under its Joint Development Agreement with Petrobras America, Inc. signed in 2010.

To date, all cellulosic ethanol produced from sugarcane bagasse in KLE’s demonstration plant in 2011 has been shipped to Petrobras SA in Brazil. KLE also recorded the first cellulosic ethanol RIN credits issued by the Environmental Protection Agency.

Having met all technology milestones and ethanol production targets, Petrobras and KLE have decided to extend the scope of the JDA. Under the extension, KLE has upgraded its demonstration plant, expanded production process validations and added on-site yeast production capabilities. Throughout the rest of 2012, KLE will process sugarcane bagasse into fuel spec ethanol.

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