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Non-Tech : $2 or higher gas - Can ethanol make a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2553)	8/4/2007 7:33:49 PM
From: richardred	Respond to of 2801

Abengoa to put plant in Hugoton BY PHYLLIS JACOBS GRIEKSPOOR The Wichita Eagle Abengoa Bioenergy's $300 million ethanol project that will include the first U.S.-based cellulosic ethanol production plant will be built in the southwest Kansas town of Hugoton. Official announcement of the project will be Aug. 23. A $76 million U.S. Department of Energy grant will help fund the project, which will include a plant making about 30 million gallons of ethanol each year from cellulosic materials, including corn stover. The complex also will include an 85-million-gallon traditional corn-fed plant. Abengoa was one of six companies chosen for the grants to advance the science of cellulosic ethanol production. There are 124 operating ethanol plants in the U.S. with 82 others under construction. They generate about 6.8 billion gallons annually, an amount projected to almost double when the plants under construction come on line, according to the Renewable Fuels Association. As concerns are raised about adequate grain supplies, the industry is looking for greater efficiencies by using more parts of the corn plant to generate ethanol and for new feedstocks. The Hugoton project is the second announced this year for Abengoa, which also operates the corn-fed plant at Colwich, one of the nation's oldest. That plant produces about 35 million gallons annually. The company plans to build a new 88-million-gallon plant adjacent to it, a project expected to have an impact of $154 million on the Wichita-area economy during construction. That project has been delayed by a lawsuit filed against Colwich challenging the city's process for granting a zoning change for the plant. Abengoa is based in Spain, where it has done extensive research and development on cellulosic material as an ethanol feedstock. The company's North American operations, Abengoa Bioenergy Corp., is based near St. Louis. It also operates traditional corn-fed ethanol plants in Nebraska and New Mexico. kansas.com