Abengoa Bioenergy Biomass Ethanol Plant in Hugoton Sold Part of Bankruptcy

by San Antonio Attorney

Kansas-based Abengoa Bioenergy Biomass sold its cellulosic ethanol business in Hugoton to Synata Bio for the price of $48.5 million, according to reports.

Abengoa Bioenergy, a subsidiary of Abengoa in Spain, filed for bankruptcy and shedding assets through the bankruptcy proceedings. Last August, it found a buyer for its traditional grain ethanol factory in Colwich. Synata Bio in Illinois is a renewable energy company that offers highly effective gas-to-liquids technology. Its inexpensive process produces an array of plentiful feedstocks, like biomass, natural gas, industrial gases and MSW.

The Hugoton plant is special considering that it manufactures ethanol from cellulose, just like the ones in switchgrass and wheat straw, a less precious ingredient than the grain that majority of the plants utilize. The U.S. government subsidizes the technology in the hopes that the technology would develop sufficiently to make this product as viable as typical ethanol.

The assets auctioned include a biorefinery that is state-of-the-art.

Five years ago, the U.S. Energy Department provided a $133.9 million financing to Abengoa Bioenergy Biomass of Kansas to fund the construction of the factory.

A debtor is required to declare their assets upon filing for bankruptcy. During bankruptcy, the trustee may sell some of the debtor’s assets and use the money from the sale to repay creditors.

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