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Abengoa Bioenergy and Mid-Kansas Enter Into Agreement

Abengoa Bioenergy and Mid-Kansas Electric Company LLC (Mid-Kansas) announced plans today concerning the development of the nation’s first commercial-scale hybrid cellulosic ethanol and power plant, Abengoa Bioenergy Hybrid of Kansas, LLC (ABHK). ABHK is a sustainable solution that will diversify electric generation in Kansas and help power the state’s growing demand for energy using Abengoa Bioenergy’s state-of-the-art, integrated bio-refinery technology and Mid-Kansas’ service capabilities.

An agreement between Abengoa Bioenergy and Mid-Kansas has been signed identifying the terms of a power purchase agreement for 75 megawatts of base load electricity. The electricity will be generated at the electric generation and cellulosic ethanol plant to be constructed in Stevens County, Kan., and will use biomass from crop residue as a fuel source.

The facility will be constructed at a cost of $550 million and have the capability to generate electricity and produce cellulosic ethanol. The cellulosic ethanol facility will produce 15 million gallons of ethanol per year and use corn stover, wheat straw and switchgrass as fuel inputs. The plant will use 2,500 tons of biomass daily to produce ethanol and electricity. Start-up operations are expected in 2012.

The construction project will require nearly 100 full-time jobs during the 24-month construction period, generating $17 million in construction wages.

Once constructed, the plant will require approximately 90 full-time employees and will purchase $13 million of biomass annually from area farmers and purchase more than $3 million of other goods and services locally. The plant will pay $4.5 million in wages annually when operational, and it is expected that more than 50 additional jobs will be needed for biomass procurement. The plant will consume 10 percent to 12 percent of biomass within a 50 mile radius of the plant.

The contract calls for Mid-Kansas to purchase all electricity from the facility for a 20-year contract period with rights to extend for additional years. Pioneer Electric Cooperative Inc. will provide retail electric service to the facility.

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