Abengoa to open 1.2 Mgy ethanol plant in Spain; still on hold with larger ethanol plant owing to high feedstock prices, low demand outlook

In Spain, Abengoa said that it would open its planned 1.2 Mgy grain ethanol plant in Babilafuente, in central Salamanca province, but would not restart construction on a larger Babilafuente project doe to high feedstock prices and uncertain demand. The company continues to operate two plants in Coruna and Cartagena, and is building a 200,000 tonne biodiesel plant for Cepsa in San Roque, near Gibraltar.

Abengoa expects to commence full-scale cellulosic ethanol production in Kansas by 2011. The company is currently constructing its production facility in Hugoton, Kansas, and has a pilot-scale plant operating at York, Nebraska.

Abengoa received a total of $76 million in Department of Energy grants to assist in the cost of research and development.

The proposed cellulosic ethanol facility in Hugoton, Kansas will produce 13 Mgy from switchgrass, corn stover, milo and wheat straw, and 88 Mgy of corn ethanol. Abengoa projects it will need to collect 4-7% of biomass from a 50-mile radious around Hugoton to supply the 930 tons needed daily for the plant. The company expects to increase farm income by $8-$9 per acre from biomass acquisition.

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