Abengoa Bioenergy, a unit of Abengoa, received a $133.9 million loan guarantee from the U.S. Department of Energy's Loan Programs Office. The money will support construction of a commercial scale biorefinery facility in Kansas to produce renewable liquid fuel from plant fiber or cellulosic biomass.
The Federal Financing Bank is backing the loan, which will be given when Abengoa meets certain conditions. Abengoa Bioenergy said it will begin construction at the site.
DOE¹s Energy Efficiency and Renewable Energy¹s Biomass Program supported construction of the pilot plant in Nebraska with a $34 million cost matching award, then signed a cooperative agreement in 2007 to provide up to $100 million towards construction of the commercial facility as one of six second-generation biofuels facilities chosen under DOE¹s biofuels initiative.
