KL Energy has completed phase-one as stipulated under the joint development agreement (JDA) that was signed between KL Energy and Petrobras for the production of cellulosic ethanol.

The JDA signed back in August 2010 sought to optimize KL Energy’s proprietary cellulosic ethanol technology for sugarcane bagasse feedstock, with Petrobras investing $11m for the purpose.

Having achieved technological as well as production targets, the two companies have decided to expand the scope of the JDA, which was nearing its term of 18 months.

As per the extended terms, the demonstration plant will now be representative of future commercial plants, producing a tenth of the planned capacity and capable of being integrated along with Brazilian sugarcane mills.

Petrobras Biocombustíveis manager biofuels João Norberto Noschang said the company is committed to bringing the most advanced bio-fuel technologies to the Brazilian market.

"With the support of KLE we have made great advance in the area of cellulosic ethanol, which is best documented in the first industrial production of ethanol from sugarcane bagasse in 2011," added Noschang.

Under the extended JDA, the two companies signed a Technology and Patent License Agreement back in April that lets Petrobras use KL Energy’s technology in any of its Brazilian sugarcane production assets.