U.S. DOE finalizes US$132.4M loan guarantee for Abengoa Bioengergy Biomass of Kansas, which plans to convert crop residues into ethanol

HUGOTON, Kansas , September 30, 2011 () – The U.S. Department of Energy says it has finalized a $132.4 million loan guarantee to a company that plans to convert crop residues into ethanol in southwest Kansas.

Abengoa Bioengergy Biomass of Kansas is developing a commercial-scale cellulosic ethanol plant in Hugoton, about 70 miles southwest of Garden City.

The company estimates the project will create about 300 construction jobs and 65 permanent positions. The DOE says the project will convert roughly 300,000 tons of agricultural crop residues, including corn stalks and leaves, into 23 million gallons of ethanol per year.

Energy Secretary Steven Chu says the project will help reduce carbon emissions and decrease the country's dependence on oil.

The company says it expects more than 90 percent of the project's sourced components to be produced in the U.S.

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