This is an excerpt from EERE Network News, a weekly electronic newsletter.

August 24, 2011

DOE Offers a Conditional $133.9 Million Loan Guarantee for Bioenergy Plant

DOE announced on August 19 the offer of a conditional commitment for a $133.9 million loan guarantee to Abengoa Bioenergy Biomass of Kansas to develop a commercial-scale cellulosic ethanol plant in Kansas. Project sponsor Abengoa Bioenergy US Holding, Inc., estimates the project will create approximately 300 construction jobs and 65 permanent jobs. The project will be located in Hugoton, Kansas.

The bioenergy project is expected to convert roughly 300,000 tons of corn stover (stalks and leaves) into approximately 23 million gallons of ethanol per year using an innovative enzymatic hydrolysis process. The project maximizes the use of agricultural crop residues that would otherwise not be utilized, and it uses feedstock that does not compete with feed grains. Annually, the project is expected to displace more than 15.5 million gallons of gasoline, which will avoid more than 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. DOE's Loan Programs Office has issued loans or loan guarantees, or offered conditional commitments for loan guarantees totaling nearly $40 billion to support 42 clean energy projects across the United States. See the DOE news release and Loan Programs Office.