The Energy Committee received an update this week from the Rural Development Division from the Department of Commerce on energy tax credits and the current state of the biofuels industry in Kansas. Also presenting was a representative of Abengoa Bioenergy, who discussed the status of the pilot hybrid bio-refinery under construction in Hugoton.
The number of ethanol and biodiesel plants in Kansas is growing. Currently there are 11 ethanol plants operating in Kansas, three under construction, three have received necessary permits but have yet to begin construction, and unfortunately two have recently gone idle due to the economic downturn. There is currently only one operating biodiesel plant in Kansas, although two are under construction, two have yet to break ground, while two biodiesel plants have also gone idle. The growth in the ethanol and biodiesel industry is proof that recent energy tax credit incentives are helping bolster development. It is expected that these tax credits will be critical to future growth by incentivizing out of state investment.
The outlook of the pilot plant under construction in Hugoton is also positive. The $500 million plus investment project is expected to begin construction sometime later this year and is expected to be operational by 2011. This plant is the first commercial facility of Abengoa that utilizes cellulose-based ethanol technology. The project will not only bring millions of investment dollars to Kansas, but will also be utilizing local agricultural production for raw materials – an obvious plus for Kansas. Abengoa has also taken great caution to ensure that the local environments where they operate remain as healthy and integral as possible. To date, Abengoa has already invested twenty million dollars in the project and yields of staff in excess of 150 people.
The Energy and Utilities Committee also heard presentations on oil production in Kansas this week, and on Friday the Committee took an observational field trip to the Jeffery Energy Center.