South Dakota-based KL Energy and Brazil's Petrobras unveiled Tuesday their plans to generate cellulosic ethanol from sugar cane bagasse and other feedstocks at a facility in Upton, Wyo. The site has been producing limited amounts of ethanol from wood feedstocks. Under the terms of the deal, Petrobras will spend $11 million on retrofitting to test technology that could eventually be adopted by the Brazilian company's mills.

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