Abengoa Bioenergy offered $133.9MM DOE loan guarantee for biomass project

Source: US Department of Energy

US Energy Secretary Steven Chu announced the offer of a conditional commitment for a $133.9 million loan guarantee to Abengoa Bioenergy Biomass of Kansas LLC (ABBK) to support the development of a commercial-scale cellulosic ethanol plant. ABBK’s parent company and project sponsor, Abengoa Bioenergy US Holding, Inc., estimates the project will create approximately 300 construction jobs and 65 permanent jobs. The project will be located in Hugoton, Kansas, about 90 miles southwest of Dodge City, Kansas.

“This project is part of the Administration’s commitment to expand our advanced domestic biofuels industry,” said Secretary Chu. “Investments like these will create jobs and decrease the nation’s dependency on oil by using a sustainable, home-grown transportation fuel that will help reduce greenhouse gas emissions.”

The Abengoa Bioenergy project is expected to convert approximately 300,000 tons of corn stover (stalks and leaves) into approximately 23 million gallons of ethanol per year using an innovative enzymatic hydrolysis process. The project maximizes the use of agricultural crop residues that would otherwise not be utilized and uses feedstock that does not compete with feed grains.

Annually, the project is expected to displace over 15.5 million gallons of gasoline, which will avoid over 139,000 tons of carbon dioxide emissions. The facility will be self sufficient, using unconverted biomass to generate 20 megawatts of electricity to power the cellulosic ethanol plant. ABBK has entered into an ethanol offtake agreement to sell ethanol produced by the facility and expects more than 90 percent of the project’s sourced components to be produced in the US.



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