Energy Secretary Steven Chu announced Abengoa Bioenergy Biomass of Kansas LLC was getting a $133.9 million loan guarantee to support a commercial-scale cellulosic ethanol plant.
The facility would use agricultural crops that don't make their way into feedstock. It would convert around 300,000 tons of corn stalks and leaves into roughly 23 million gallons of ethanol every year. This would displace more than 15.5 million gallons of gasoline and avoid nearly 140,000 tons of carbon dioxide emissions, the Department of Energy said.
"This project is part of the Administration's commitment to expand our advanced domestic biofuels industry," Chu said in a statement.
The U.S. Department of Agriculture announced in July that it designated project areas in six states for production of feedstocks for use in biofuels.