The Department of Energy has finalized a $132.4 million loan guarantee for a commercial-scale cellulosic ethanol project in Kansas.

U.S. Energy Secretary Steven Chu said the loan guarantee is in place for Abengoa Bioenergy Biomass of Kansas, LLC to take forward a project that should support 300 construction jobs and 65 permanent jobs.

The project will be located in Hugoton, Kansas, about 90 miles southwest of Dodge City, Kansas.

The facility received its Air Quality Construction Permit from the State earlier this month, shortly before a 24-month construction period began.

“Investing in a domestic advanced biofuels industry will help us compete in a growing, global clean energy economy while creating jobs in rural communities across the country,” said Secretary Chu. “At the same time, these investments will help us reduce carbon emissions and decrease our dependence on oil.”

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 “innovative” enzymatic hydrolysis process, the DOE said.

It will maximize 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 percent of the project’s sourced components to be produced in the U.S.

source: brighterenergy


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