BioFuels Journal

By Joanna Schroeder, Special to BioFuels Journal

Hugoton, KS—Spanish-owned Abengoa Bioenergy celebrated the grand opening of its second generation cellulosic ethanol biorefinery here on Friday, Oct. 17, the third commercial-scale cellulosic ethanol biorefinery to go online in the United States in the last two months.

But questions remain about how many second generation cellulosic ethanol plants like it will be celebrating grand openings in the future if the Environmental Protection Agency (EPA) restricts the volume of ethanol that obligated parties are required to buy under terms of the Renewable Fuels Standard.

At the grand opening, Abengoa officials said that, when the plant reaches its nameplate capacity, it will convert approximately 360,000 tons of corn stover and wheat straw into 25 million gallons of cellulosic ethanol and 21 megawatts of electricity a year.

Abengoa officials called the plant the first of its kind in the United States because it will produce no waste and will use no fossil energy to produce biofuels and co-products.

The ethanol industry has been pressuring the Obama Administration and the EPA to reinstate the cuts the EPA has proposed making in 2014 for the volumes of ethanol that the RFS mandates.

U.S. Department of Energy (DOE) Secretary Ernest Moniz delivered the keynote speech at the grand opening celebration.

After his speech, Moniz was asked what message he would be delivering to the EPA.

Moniz responded that, while the DOE has no regulatory power, the Abengoa cellulosic ethanol plant is a demonstration that the Obama Administration’s “all above energy” strategy is working.

“Developing the cellulosic biofuels industry is essential for our economy, security, and environment,” Moniz said, “so we will certainly find a way, through the support of projects, to move the industry forward.”

When Kansas Gov. Sam Brownback was asked how the cellulosic industry should be promoted and supported at the state level, he noted that there are barriers for the cellulosic industry at both the state and federal levels.

“The idea of cellulosic ethanol has been a dream for nearly 30 years,” he said, “to take cellulose and produce ethanol. Today, we continue to refine the process and make it more competitive. Now we have to go on and make another stream. In my mind, in the future, you will be able to mix grain and cellulose to produce ethanol from one plant.”

The final 2014 RFS renewable fuel volumes have yet to be finalized and it was said during the opening event that an announcement about the final numbers will not be made until after the November mid-term elections.

Another question that was discussed during the grand opening was how to attract more private investment in the development of the U.S. cellulosic fuels industry.

While many second generation cellulosic ethanol technologies are being developed in Brazil, Italy, and other countries, Abengoa has dedicated more than 12 years to developing its cellulosic ethanol technology in the United States.

Manuel Sanchez Ortega, CEO of Abengoa Bioenergy, was asked why the company chose and committed to working in the United States.

He replied that the U.S. market was the number one market for the company.

“The United States is the base of most of our investors and shareholders in the company today and the United States is a country in which we are investing more equity in new products,” he stated.

He said the company believes that the United States is the world’s base of innovation and, therefore, that it is the place where Abengoa will focus its new product innovations.

“And we thought it was important for a company like ours, which deeply believes in technology and innovation, to be in a place where those two things are integral,” he explained.

Sanchez Ortega acknowledged that there have been and will continue to be challenges and headwinds for the cellulosic ethanol industry. However, he added, Abengoa will continue to work in the United States and will remain committed to moving the cellulosic industry forward through continual innovation.

For more information, please contact Jerry Perkins at 515-724-3625 or at jerry@grainnet.com

See Related Websites/Articles:

• Abengoa

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