Abengoa takes Fulcrum to court over $100M cost overrun despite arbitration

June 2, 2020 |

In Spain, the El Confidential newspaper reports that Abengoa has ditched the Fulcrum aviation biofuel project it has been working on since 2017 citing irreconcilable difference with the client and a cost overrun of $100 million over the past two years. The plant was supposed to be completed by the end of 2019.

Due to the challenges and cost overruns, Abengoa took the case to the International Chamber of Commerce to seek arbitration but the ruling came back that each company should be responsible for $50 million of the costs while Abengoa should also be responsible for $17 million in financial guarantees that Fulcrum took out for the project. Abengoa has taken the arbitration result to court and in the meantime stopped paying its suppliers in the US, which is leading to a whole other legal mess for the company as they’re starting to demand payment.

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Category: Producer News

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