Spain's Abengoa SA is planning to build a cellulosic ethanol plant in Kansas, according to David Roman of Dow Jones Newswires. The facility will use agricultural waste to produce 12 million gallons of ethanol per year. Construction plans have already received approval and operations are expected to begin by 2011. A traditional ethanol facility will also be located on site.
Roman noted that Abengoa Bioenergy, the company's alternative fuel arm, is the fifth-largest ethanol producer in the U.S. and the largest in Europe. The company plans to spend more than €400 million to develop cellulosic ethanol production technology. Abengoa Bioenergy's CEO, Javier Salgado, said the "future of [his] company lies" with cellulosic ethanol production, and that "most of [its] cash flow will be dedicated to" its development. Abengoa was one of six companies to receive funding from the U.S. Department of Energy for the development of cellulosic ethanol; the company was given up to $76 million for the Kansas facility.