KL Energy, PGRE to develop cellulosic ethanol plant

By Anna Austin | March 05, 2009
Web exclusive posted March 9, 2009, at 11:02 a.m. CST

Cellulosic Ethanol developer KL Energy Corp. has signed a letter of intent with Prairie Green Renewable Energy Inc. to develop a cellulosic ethanol plant near Hudson Bay in Northeastern Saskatchewan.

KL Energy will supply its art design and engineering to the construction of the 5 MMgy cellulosic ethanol facility, which will use wood waste as a feedstock. A second facility is also planned, which will double production.

Since January 2008, KL Energy has operated a 1.5 MMgy wood waste-to-ethanol plant near Upton, Wyo. In early January 2009, the company received a $25,000 grant from the Colorado Agricultural Value Added Development Board of the Colorado Department of Agriculture to study the feasibility of colocating a 5 MMgy cellulosic ethanol plant with Confluence Energy's wood pellet production facility in Kremmling, Colo.

Prairie Green Renewable Energy has another proposed project in the Hudson Bay area, which includes a 50 MMgy ethanol plant that will utilize barley and pea crop residues as feedstock; and/or a 55 MMgy dry mill barley-based ethanol plant.