OMAHA (DTN) -- Upton, Wyo.-based KL Energy Corp. said its demonstration wood-to-ethanol plant has been approved by USDA as a biomass production facility under the Biomass Crop Assistance Program, according to a news release from the company.
KL Energy is currently working on developing other cellulosic ethanol plants in the U.S., Europe and South America.
BCAP, a program administered by the USDA's Farm Service Agency, will provide KL Energy with funding to offset the feedstock cost associated with its plant in Upton, Wyo., that produces cellulosic ethanol and other high-value energy products from wood chips.
BCAP offers a matching per-ton payment for the collection, harvest, storage and transportation of renewable biomass delivered and sold to a local biomass conversion facility such as the Upton plant.
KL Energy Corp. Wyoming-based plant uses a proprietary thermo-mechanical pretreatment and enzymatic hydrolysis process.
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