JUNE 2009

KL Energy Corp. expands into Brazil

KL Energy Corp. has engaged in an exclusive cooperation agreement with add blue Ltda. KL Energy and add blue are now optimizing KL Energy’s cellulosic ethanol technology for the use of sugarcane bagasse and straw feedstock. It has planned to build Brazil’s cellulosic ethanol plant using KL’s enzymatic process and completely integrated into a conventional mill with startup in 2010.

Brazil is the world’s second largest producer of ethanol and the domestic market is poised to experience a massive increase in demand as flex-fuel cars begin to dominate the national fleet. Presently, more than 360 mills are operating in Brazil, all of them generating huge amounts of sugarcane bagasse, an ideal feedstock for cellulosic ethanol production.

Further, add blue will offer ethanol plant process optimization services in cooperation with KL. Add blue will be the first company in Brazil’s sugarcane industry to apply the best process simulation tool in the business, Aspen Plus. Supported by KL Energy’s unmatched expertise in process optimization, add blue will offer to mill owners a unique opportunity to increase capacities, yields and profitability. Add blue is in the process of successfully concluding its first full fledged process optimization project at a sugarcane mill in the State of São Paulo.