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US DOE offers Abengoa Bioenergy a conditional commitment for a $133.9M loan guarantee for cellulosic ethanol plant

The US Department of Energy is offering 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.

The Abengoa Bioenergy project is expected to convert approximately 300,000 tons of corn stover into approximately 23 million gallons of ethanol per year using an 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 more than 15.5 million gallons of gasoline. 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% of the project’s sourced components to be produced in the US.

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