Abengoa Bioenergy and Mid-Kansas Electric Company are planning to develop the nation’s first commercial-scale hybrid cellulosic ethanol and power plant in Kansas.

Announced this week, Abengoa Bioenergy Hybrid of Kansas will be “a sustainable solution that will diversify electric generation in Kansas and help power the state’s growing demand for energy using Abengoa Bioenergy’s state-of-the-art, integrated bio-refinery technology and Mid-Kansas’ service capabilities.”

“As an international energy company, we believe this project is an important part of our continual growth in bioenergy,” said Javier Salgado Leirado, president and CEO of Abengoa Bioenergy. “Advancing this project required the perfect match of agricultural resources, technology, and a utility partner—all present in our partnership with Mid-Kansas. The agreement terms allow us to move forward with the project and bring significant investment to Kansas.”

The facility will be constructed at a cost of $550 million and have the capability to generate electricity and produce cellulosic ethanol. The cellulosic ethanol facility will produce 15 million gallons of ethanol per year and use corn stover, wheat straw and switchgrass as fuel inputs. The plant will use 2,500 tons of biomass daily to produce ethanol and electricity. Start-up operations are expected in 2012.