Spain's Abengoa Corp. announced that it will construct a bio-ethanol plant in Uruguay's Paysandu department, for Alcoholes de Uruguay. The $120 million contract includes constructing an adjoining power cogeneration plant. Work on the facility is slated to begin in January 2012.
Alcoholes de Uruguay chose the Spanish Abengoa Corp. after comparing its proposal with one submitted by Spain's Elecnor firm.
Alcoholes de Uruguay executive director Leonardo De Leon signed an agreement of intent to form a partnership with Abengoa for the maintenance and operation of the plant, Diario el Pais newspaper reported.
The plant will produce 70 million liters of ethanol annually and 50,000 tons of Distillers Dried Grains with Solubles (DDGS), a byproduct for animal feed. In addition Abengoa Corp. will build a 8 megawatt cogeneration plant utilizing forest biomass to provide electricity and steam for the operation of the bioethanol plant. Construction of the facility will employ 300 people and once the facility is in operation it will require 70 workers.
De Leon said, "The greatest impact of this project will be in agriculture and its logistics, as we will need the direct supply of 50,000 hectares for the operation of the plant."
By. Charles Kennedy, Deputy Editor OilPrice.com
Charles is a writer for Oilprice.com More