DOE gives loan guarantee to Abengoa Bioenergy
Washington D.C., USA - U.S. Energy Secretary Steven Chu today announced the offer of a conditional commitment for a $133.9 million loan guarantee to Abengoa Bioenergy to support the development of a commercial-scale cellulosic ethanol plant.
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. According to DOE reports, 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 company estimates that the project will create approximately 300 construction jobs and 65 permanent jobs. It will be located in Hugoton, Kansas.