Abengoa Bioenergy announced plans Tuesday concerning the development of the first US commercial-scale hybrid cellulosic ethanol facility that will also function as a 75 megawatts (MW) power plant.
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 feedstocks. The plant will use 2,500 tons of biomass daily to produce
ethanol and electricity. Start-up operations are expected in 2012.
Utility Mid-Kansas Electric Company LLC signed a power purchase agreement for the entire power output from the plant for 20 years.
“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 construction project will require nearly 100 full-time jobs during the 24-month construction period, generating $17 million in construction wages, according to a release.
Once constructed, the plant will require approximately 90 full-time employees and will purchase $13 million of biomass annually from area farmers and purchase more than $3 million of other goods and services locally. The plant will pay $4.5 million in wages annually when operational, and it is expected that more than 50 additional jobs will be needed for biomass procurement. The plant is expected to consume 10% to 12% of biomass within a 50 mile radius of the plant.
“The Mid-Kansas board is continually looking for opportunities to develop base load resources to add to the Mid-Kansas generation portfolio,” said L. Earl Watkins, Jr., president and CEO of Mid-Kansas. “This power purchase agreement will generate base load while benefitting area farmers. We are pleased to support this effort and look forward to a successful relationship with Abengoa Bioenergy.”
Abengoa Bioenergy is the largest European ethanol producer and one of the largest producers in the US. Abengoa Bioenergy has recently completed construction and is in the process of starting up two new facilities in the U.S., one in Indiana and another in Illinois. Abengoa Bioenergy is one of five divisions of the Spanish public company Abengoa S.A. (ABG.MC)
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