The plant has an estimated capacity of 88 million gallons of ethanol per annum but the company refused to put a timeframe on the production halt, reported Bloomberg.

According to company spokesperson Christopher Standlee the plant has suffered due to the recent drought across the US that destroyed corn fields and escalated production costs.

Abengoa’s move comes in the wake of US-based Biofuel Energy shutting down its 115 million gallon per year plant in Fairmont, Minnesota citing similar reasons