The first industrial-sized cellulosic ethanol production plant in the U.S. will be built in Hugoton, KS, by Abengoa Bioenergy. The $400 million facility will include a 30-million-gallon cellolosic ethanol plant plus an 85-million-gallon traditional ethanol plant. Cellulosic ethanol will be made from 700 tons per day of corn stover, wheat straw, switchgrass and other feedstocks.

The project will be partially funded by a $76 million grant from the Department of Energy (DOE). In February, DOE awarded up to $385 million in grants to six companies, including Abengoa, to help build the first cellulosic ethanol plants. The other companies plan to build plants in Florida, Georgia, Iowa, Idaho and California.

Headquartered in Spain, Abengoa Bioenergy has its North American division in Chesterfield, MO, a St. Louis suburb.