KL Energy Corp. (OTCBB: KLEG) today announced that it has engaged in an exclusive cooperation agreement with add blue Ltda. KL Energy and add blue are now optimizing KL Energy's proprietary cellulosic ethanol technology for the use of sugarcane bagasse and straw feedstock. It is 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 2nd 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.
add blue will further 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 1st full fledged process optimization project at a sugarcane mill in the State of So Paulo.
KL Energy CEO Steve Corcoran commented, "KL Energy had been looking for opportunities to enter the Brazilian ethanol market. Our agreement with add blue is the perfect fit to expand our business strategy as a global cellulosic ethanol technology provider."
Founder and Managing Partner Peter Gross of add blue stated, "Cellulosic ethanol has great market potential in Brazil and this is the ideal moment to introduce this technology. The cooperation with KL has begun extraordinary well in all areas: the joint optimization of KL Energy's enzymatic process for sugarcane mills, testing of bagasse feedstock in KL Energy's commercial scale facility, and Aspen Plus powered process optimization."