Abengoa unveils US cellulosic ethanol-based electricity plan

19 January 2010 22:07  [Source: ICIS news]

HOUSTON (ICIS news)--Abengoa Bioenergy said on Tuesday that it plans to sell electricity from a cellulosic ethanol plant it will build in the state of Kansas, touting the project as a way to promote energy independence in the heartland of the US.

The Spanish ethanol maker said it has signed an agreement with Mid-Kansas Electric under which it will supply Mid-Kansas with 75 megawatts of base load electricity.

The contract calls for Mid-Kansas to purchase all electricity from the plant for a 20-year period with rights to extend for additional years, Abengoa said.

The facility will produce 15m gal/year of ethanol, using 2,500 tonnes/day of biomass feedstock such as corn stover, wheat straw and switchgrass.

Abengoa said the plant will cost $550m (€380m) and take 24 months to be completed.

Start-up operations are expected for 2012, according to the company.

($1 = €0.69)

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By: William Lemos
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