New Spanish corn ethanol plants moves forward despite Abengoa ethanol shutdown

In Spain, Alcoholes Biocarburantes de Extremadura (Albiex) has commenced construction of a 29 Mgy corn ethanol plant near Badajoz, which will also produce 87,000 metric tonnes of distillers grains for livestock feed. Total plant investment is $59 million and plant is expected to open in 2009.

Abengoa said this week it has shut down ethanol production at its largest Spanish plant because ethanol is currently unprofitable due to high feedstock prices and the current outlook for ethanol in Spain. The plant was idled for the same reason earlier this year.

Abengoa has two other Spanish plants which remain in production; recently the company put a 27 Mgy US plant in Mexico up for sale and announced it would be concentrating on larger ethanol plants as well as cellulosic ethanol research.

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