Sponsered by ABBK’s parent company, Abengoa Bioenergy, the project will be located in Hugoton.
DOE secretary Steven Chu said the loan guarantees will help the department to reduce carbon emissions and decrease dependence on oil.
The project is expected to convert about 300,000 tons of agricultural crop residues, including corn stover, into nearly 23 million gallons of ethanol per year using enzymatic hydrolysis process.
Annually, the project is expected to displace over 15.5 million gallons of gasoline, which will avoid over 139,000 tons of carbon dioxide emissions, DOE said.
The facility, using unconverted biomass, will produce 20MW of electricity to power the cellulosic ethanol plant.
