Abengoa Bioenergy has been selected by the US Department of Energy for a $133.9 million federal loan guarantee to build a new generation commercial scale biorefinery facility to produce renewable liquid fuel from plant fiber, or cellulosic biomass.
With the offer of a conditional commitment now received, Abengoa Bioenergy has announced that they intend to start construction shortly on the site, which is located near Hugoton, in Stephens County Kansas.
“Abengoa has been developing this technology for 10 years, and the project itself has been in the development stages for over 5 years,” said Manuel Sánchez, CEO of Abengoa. “In preparation for construction of the Hugoton project, the company has developed and perfected its proprietary technologies and produced cellulosic ethanol for thousands of hours from laboratory scale, to a biomass pilot plant facility in York, Nebraska, and ultimately from a demonstration scale facility in Salamanca, Spain. As a result, we are very pleased to finally achieve this financing milestone, and we thank the Department of Energy’s Loan Programs Office for their offer of a conditional commitment, that if realized will allow us to construct one of the first commercial scale biomass conversion plants in the world.”