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BOB MOEN Associated Press Writer - July 4, 2009

UPTON, Wyo. (AP) — In the tiny town of Upton, KL Energy Corp's test plant is among those at the forefront of a concerted research effort to turn trees, waste wood and other plants into automobile fuel.

The Rapid City, S.D.-based company is hoping to capitalize on doubts about corn ethanol and the federal government's embrace of biofuels as a way to create jobs, help replace imported oil and protect the environment.

The government has also touted wood biofuel as a way to create markets for small wood and low value trees on federal forest lands.

KL's process turns the wood into 200-proof liquid ethanol.

A company executive says it plans to build plants based on its Upton model near forests around the country.

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