Future of Abengoa Plants In NE & KS Still Unknown

Source: BY Joe Gangwish/DTN-Progressive Farmer/Bloomberg • Posted: Saturday, December 12, 2015

Future of Abengoa Plants In NE & KS Still Unknown

Farmers and ethanol interests in Nebraska and Kansas are still wondering the fate of Abengoa Bioenergy’s ethanol plants in the two states.  According to an email statement Wednesday, Abengoa’s bioenergy plants are operating normally, with the exception of the Hugoton, Kansas Cellulosic facility, where its ramp-up phase has been postponed.

In a story in Ethanol Producer Magazine last week, Abengoa had idled for maintenance and other work at its plants in York and Ravenna, Nebraska.  When contacted, officials at those sites refused to comment and directed questions to their U.S. headquarters in St. Louis.

Abengoa Bioenergy SA filed for protection from its creditors last month, and there were questions about what a potential pending bankruptcy would mean for the company’s ethanol plants in the United States.

The Lincoln Journal-Star reports the York plant recently laid off it’s research and development staff which was fewer than 10 people. But, the York County Development Corporation says the company plans to reopen the plant at some point.

CHS had filed a lawsuit last month against the company before its filing for protection. The lawsuit alleges that Abengoa failed to pay nearly $4.9 million for corn delivered to plants in Nebraska and Kansas during September and October.