Kansas Cellulosic Plant to Sell

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August 25, 2016

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by Todd Neeley (DTN The Progressive Farmer) Abengoa Cellulosic Ethanol Plant Draws Wide Interest — … Mark Fisler, managing director of Los Angeles-based Ocean Park Advisers, the company hired by Abengoa to sell the biomass-based ethanol plant that shut down as part of Abengoa’s ongoing bankruptcy proceedings, said there will be an auction for the plant sometime in October and that he’s “100% confident” the plant will sell.

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“We’re going to get out a bid seeking institutional letter to interested parties this week. The activity and interest level at the site are reasonably high. We expect to get a number of letters of interest. There has been more than 15 entities doing site tours, doing engineering work, studying how they would use the asset. It’s been very robust. We’ve been pleased with the opportunities.”

The plant, which was built at an estimated cost of $400 million, remains in “cold status at this point,” Fisler said. The plant was in the middle of start-up when Abengoa’s financial problems surfaced.

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The interested buyers come from all around the world and from three main camps, Fisler said.

That includes from existing cellulosic ethanol development companies and from first-generation corn ethanol companies looking to produce “generation 1.5” ethanol and maybe use some of the cellulosic aspects of the plant for corn fiber.

The third camp includes advanced biofuels/bio-based chemical companies that may retrofit some of their existing technologies to the plant.

Fisler said the cellulosic ethanol plant still has a “very small number” of employees who remain connected to the site and would be employees with “sound institutional knowledge” about the technology. READ MORE

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