Biomass Plant Underway in Hugoton

A Spanish company is building a plant in Hugoton where grass and other crop residue will be turned into fuel.

Madrid-based Abengoa Bioenergy is building its first commercial plant in Hugoton. The facility is expected to use about 1,300 tons of crop residue and grass a day to make ethanol.

Tom Robb, manager of the product division of Abengoa, said the site is expected to be producing ethanol by late 2013 or early 2014. The plant is projected to have 65 permanent jobs with an annual payroll of $5 million when it’s operating.

Abengoa has also received a $132 million loan guarantee from the U.S. Department of Energy to develop the site, which is expected to cost more than $350 million.