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Non-Tech : $2 or higher gas - Can ethanol make a comeback?
DAR 34.83+0.3%Dec 23 3:59 PM EST

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From: richardred8/4/2007 7:32:23 PM
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Spanish company chooses Hugoton for cellulosic ethanol plant

Associated Press - August 4, 2007 2:34 PM ET

HUGOTON, Kan. (AP) - A Spanish company has chosen Hugoton in southwest Kansas as the site of the first US plant to turn crop residue and other vegetation into ethanol.

Abengoa Bioenergy will formally announce the $300 million project in August. The plant will also include a traditional corn-to-ethanol plant.

The traditional plant is expected to produce 85 million gallons a year. The other will produce about 30 million gallons from cellulose.

Cellulose is the main ingredient in a plant's cell walls. New technology will be used to convert cellulose from "corn stover" - cobs, leaves, stalks and husks - and other sources into ethanol.

Environmentalists say cellulose provides a cleaner, more efficient source of fuel than corn ethanol.
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