Abengoa gets DOE loan for U.S. biomass plant

Hugoton, Kan., August 19, 2011 The Department of Energy's Loan Programs Office offered a conditional commitment for a $133.9 million federal loan guarantee to Abengoa for the construction of a commercial-scale biorefinery facility to produce renewable liquid fuel from plant fiber, or cellulosic biomass.

Upon successful satisfaction of the conditions precedent and approval of the loan guarantee, the company expects DOE to issue a guarantee of the loan from the Federal Financing Bank up to the amount ultimately approved by DOE.

With the offer of a conditional commitment now received, Abengoa Bioenergy has announced that they intend to start construction on the site, which is located near Hugoton, in Stephens County, Kansas, in the near future.

The DOE has been a supporter of Abengoa Bioenergy's efforts to develop new ethanol production technologies since 2003. The Department's Office of Energy Efficiency and Renewable Energy's Biomass Program originally supported the construction of the Abengoa pilot plant in York, Nebraska, with a $34 million cost matching award, then entered into a cooperative agreement with Abengoa Bioenergy in 2007 to provide up to $100 million towards the construction of the commercial facility in Hugoton, as one of six second generation biofuels facilities chosen for support in the DOE's biofuels initiative.

The plant is also designed to produce about 23 million gallons of cellulosic ethanol each year, as well as enough energy to meet the electric power needs of the plant.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs