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Failing Green Energy Firm Halts Operations At Federally-Funded Biofuels Plant

TheDCThe Spain-based green energy firm Abengoa will be halting operations at seven U.S.-based biofuel plants, including one plant that got $230 million in federal subsidies and did not sell a single gallon of green fuels.

Spanish media reports Abengoa is closing down its biofuel plant in Hugoton, Kan. The Hugoton plant got a $132 million loan and a $97 million grant from the Department of Energy to build a cellulosic biofuels plant with a 25-million-gallon-per-year production capacity. The Hugoton plant, however, did not sell a single barrel of ethanol despite claiming significant production levels.

Abengoa Bioenergy, the subsidiary in charge of the Hugoton plant, recorded significant losses in the last few years, according to Spanish media. The subsidiary racked up $275 million in losses last year, and $190 million in losses in 2013. By the end of last year, Abengoa Bioenergy’s negative equity increased to $434 million.

Watchdog.org reports Abengoa’s Hugoton plant is already laying off workers amid huge financial problems. Citing local media, Watchdog reports 50 employees have already been laid off.

Posted by The Daily Caller

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