Sunday, October 26, 2008 4:00:28 PM
KL Process Design Group, the 2nd Generation Cellulosic Ethanol Leader,
becomes public and changes it’s name to KL Energy Corp.
Company to Focus on Expansion of its Current Operation of the US’ First Commercial
Waste Wood to Ethanol Facility
KL Energy Corp. (OTC BB: KLEG) today announced that it has acquired KL Process Design Group
(KLPDG), a leading process design and engineering firm and a pioneer in the commercialization of
second generation cellulose-based ethanol (CBE) production. This acquisition and accompanying funding
will allow KL Energy Corp. to develop its second commercial scale CBE production facility. Ethanol
produced from cellulose is an alternative energy source highly-anticipated globally as a means of
generating energy production through various waste materials and biomass and therefore does not come
into competition with food sources. In connection with the transaction, $6.1 million in notes made in
anticipation of the transaction and held by European institutional investors Fair Energy (through affiliate
company Niton Capital) and The Green Fund, were converted into common stock in KL Energy Corp.
KL Energy Corp. (previously KLPDG) was formed early in 2000 to focus on the design and production of
bio-ethanol plants, with projects focused on efficient construction, process optimization, and industry
leading energy-efficiencies. Applying their advanced engineering skills and knowledge gained in
petrochemical process design, the Company has become a leader in the design and optimization of
grain-based ethanol (GBE) plants. Simultaneously KL worked to design, build and operate the first small
commercial scale 2nd generation cellulose-based ethanol (CBE) plant in the United States.
Since January of 2008, the Company has been successfully producing cellulosic ethanol using waste
wood as feedstock, at its commercial scale facility near Upton, Wyoming. The first facility of its kind in the
country, the new plant was completely designed, engineered, constructed and is being operated by KL
Energy (KL). The current success is the result of six years of development efforts between KL and the
South Dakota School of Mines and Technology. KL’s cellulosic ethanol plant is supplying fuel grade
ethanol today, which is being used in traditional and high performance motor-sport applications ( ALMS ).
KL's "zero radius" design concept technology has proven its adaptability to other biomass feedstock
based on the geographic availability of feedstock and local economic drivers.
Randy Kramer, KL Energy's, President and Chief Executive Officer and co-founder said, “We are at a
major inflection point for our company, as we transition to the public markets as the leader in engineering,
design, and production of cellulose ethanol. The interest we have developed not only in the United States,
but globally since beginning production at our Upton, WY facility has been astounding. As world
economies continue searching for feasible alternatives to carbon-based fuels relying on non-food
feedstock, we believe KL Energy is a leading solution provider having already proven our technology on a
commercial scale. Our company has the expertise and experience required to address the needs of the
United States and International markets with a wide variety of new projects.,” continued Mr. Kramer.
Dave Litzen, KL Energy’s Vice President of Process Engineering, and co-founder stated, “We have
combined our experience of energy efficient corn based ethanol process design with tried and tested
petrochemical optimization and design methodologies as our foundation. Concentrating our teams
combined multi industry experience on the most economic way to design, build and operate CBE plants
we have dramatically reduced the development and implementation time lines and economics, enabling
us to offer to the market financially viable commercial scale CBE production today. We have established
what we believe are the most environmentally friendly methods of extraction and production of cellulose
ethanol currently available for commercial implementation.”
About Fair Energy
Fair Energy is a global player in the oil and biofuel markets, sourcing, trading and supplying the full
spectrum of both petroleum and biomasses products from the raw material to the finished pure and
blended products. Fair Energy is well placed through its worldwide activity in oil and biofuel trading.
Through Niton Capital (its affiliate company), it offers a highly skilled and professional service thanks to its
various strategic infrastructure investments; production, processing, shipping, storage and terminal
access.
About The Green Fund
The Green Fund has identified its investment universe as WCARE; Water, Carbon emission reductions,
Asset based lending in agricultural commodities, Renewable energy and environmentally sound and
sustainably certifiable real estate. The fund is unique in its approach to sustainable and socially
responsible investments by providing, where applicable, an audited third party certification of
sustainability. The Green fund focuses on investments in emerging and/or developed markets with
emphasis on (i) asset and/or equity based investments, future flow, or collateralized-debt transactions,
including secured loans; (ii) trade-related debt instruments, such as letter of credit, promissory notes, or
accounts receivable; and (iii) high-yielding transactions secured by readily-marketable commodities
and/or other collateral.
About KL Energy Corp.
KL Energy Corp. is headquartered in Rapid City, and trades on the OTC Bulletin Board under the symbol
KLEC. KL Energy Corp is firmly at the forefront of second generation cellulose-based ethanol production,
a hugely anticipated global opportunity for energy production from waste materials and biomass. Besides
cellulose based ethanol production, KL provides design-build operations services for biofuels facilities
along with ethanol marketing services. Additional information is available at the Company's website
at www.klenergycorp.com
becomes public and changes it’s name to KL Energy Corp.
Company to Focus on Expansion of its Current Operation of the US’ First Commercial
Waste Wood to Ethanol Facility
KL Energy Corp. (OTC BB: KLEG) today announced that it has acquired KL Process Design Group
(KLPDG), a leading process design and engineering firm and a pioneer in the commercialization of
second generation cellulose-based ethanol (CBE) production. This acquisition and accompanying funding
will allow KL Energy Corp. to develop its second commercial scale CBE production facility. Ethanol
produced from cellulose is an alternative energy source highly-anticipated globally as a means of
generating energy production through various waste materials and biomass and therefore does not come
into competition with food sources. In connection with the transaction, $6.1 million in notes made in
anticipation of the transaction and held by European institutional investors Fair Energy (through affiliate
company Niton Capital) and The Green Fund, were converted into common stock in KL Energy Corp.
KL Energy Corp. (previously KLPDG) was formed early in 2000 to focus on the design and production of
bio-ethanol plants, with projects focused on efficient construction, process optimization, and industry
leading energy-efficiencies. Applying their advanced engineering skills and knowledge gained in
petrochemical process design, the Company has become a leader in the design and optimization of
grain-based ethanol (GBE) plants. Simultaneously KL worked to design, build and operate the first small
commercial scale 2nd generation cellulose-based ethanol (CBE) plant in the United States.
Since January of 2008, the Company has been successfully producing cellulosic ethanol using waste
wood as feedstock, at its commercial scale facility near Upton, Wyoming. The first facility of its kind in the
country, the new plant was completely designed, engineered, constructed and is being operated by KL
Energy (KL). The current success is the result of six years of development efforts between KL and the
South Dakota School of Mines and Technology. KL’s cellulosic ethanol plant is supplying fuel grade
ethanol today, which is being used in traditional and high performance motor-sport applications ( ALMS ).
KL's "zero radius" design concept technology has proven its adaptability to other biomass feedstock
based on the geographic availability of feedstock and local economic drivers.
Randy Kramer, KL Energy's, President and Chief Executive Officer and co-founder said, “We are at a
major inflection point for our company, as we transition to the public markets as the leader in engineering,
design, and production of cellulose ethanol. The interest we have developed not only in the United States,
but globally since beginning production at our Upton, WY facility has been astounding. As world
economies continue searching for feasible alternatives to carbon-based fuels relying on non-food
feedstock, we believe KL Energy is a leading solution provider having already proven our technology on a
commercial scale. Our company has the expertise and experience required to address the needs of the
United States and International markets with a wide variety of new projects.,” continued Mr. Kramer.
Dave Litzen, KL Energy’s Vice President of Process Engineering, and co-founder stated, “We have
combined our experience of energy efficient corn based ethanol process design with tried and tested
petrochemical optimization and design methodologies as our foundation. Concentrating our teams
combined multi industry experience on the most economic way to design, build and operate CBE plants
we have dramatically reduced the development and implementation time lines and economics, enabling
us to offer to the market financially viable commercial scale CBE production today. We have established
what we believe are the most environmentally friendly methods of extraction and production of cellulose
ethanol currently available for commercial implementation.”
About Fair Energy
Fair Energy is a global player in the oil and biofuel markets, sourcing, trading and supplying the full
spectrum of both petroleum and biomasses products from the raw material to the finished pure and
blended products. Fair Energy is well placed through its worldwide activity in oil and biofuel trading.
Through Niton Capital (its affiliate company), it offers a highly skilled and professional service thanks to its
various strategic infrastructure investments; production, processing, shipping, storage and terminal
access.
About The Green Fund
The Green Fund has identified its investment universe as WCARE; Water, Carbon emission reductions,
Asset based lending in agricultural commodities, Renewable energy and environmentally sound and
sustainably certifiable real estate. The fund is unique in its approach to sustainable and socially
responsible investments by providing, where applicable, an audited third party certification of
sustainability. The Green fund focuses on investments in emerging and/or developed markets with
emphasis on (i) asset and/or equity based investments, future flow, or collateralized-debt transactions,
including secured loans; (ii) trade-related debt instruments, such as letter of credit, promissory notes, or
accounts receivable; and (iii) high-yielding transactions secured by readily-marketable commodities
and/or other collateral.
About KL Energy Corp.
KL Energy Corp. is headquartered in Rapid City, and trades on the OTC Bulletin Board under the symbol
KLEC. KL Energy Corp is firmly at the forefront of second generation cellulose-based ethanol production,
a hugely anticipated global opportunity for energy production from waste materials and biomass. Besides
cellulose based ethanol production, KL provides design-build operations services for biofuels facilities
along with ethanol marketing services. Additional information is available at the Company's website
at www.klenergycorp.com
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