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DOE finalizes $132M loan guarantee to support the Abengoa cellulosic ethanol project

The US Department of ENergy (DOE) finalized a $132.4 million loan guarantee to Abengoa Bioenergy Biomass of Kansas, LLC (ABBK) to support the development of a commercial-scale cellulosic ethanol plant.

The project is expected to convert approximately 300,000 tons of agricultural crop residues, including corn stover (stalks and leaves), 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 over 15.5 million gallons of gasoline, which will avoid over 139,000 tons of carbon dioxide emissions. The facility will be self sufficient, using unconverted biomass to generate 20 megawatts of electricity to power the cellulosic ethanol plant. ABBK expects more than 90% of the project’s sourced components to be produced in the US.

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