Areas of activity

Procurement of raw material

A key stage in the successful outcome of the activities of the Bioenergía business group is the task of acquiring raw material for the production of biofuels.

Currently, cereal grains such as wheat, barley, corn and sorghum, are the most important for the ethanol production process in the plants of Abengoa Bioenergía, not only for their alcohol yield, but also for their production of high protein content food, highly valued in the feed sector (DGS). As regards biodiesel, the most commonly used oils are soy and palm.

Throughout its history, Abengoa Bioenergía has accumulated vast experience in the procurement and appropriate logistical handling of raw materials, acting in a fast and versatile manner at an international level, in purchases in the domestic market, and establishing contracts directly with the farmers, optimizing and ensuring at all times the supply of the plants of the business group. In the same way, it has a broad knowledge of the applicable regulations to operate in the European Union and the USA.

Abengoa Bioenergia Brazil combines the cultivation of sugar cane with sustainable rural development, maintenance of biodiversity and the economic growth of the region. Through its subsidiary, Abengoa Bioenergia Agroindústria, it assures the supply of the manufacturing plants, entering into contracts both with landowners, performing the tasks required to achieve the joint yield, and with farmers, providing them with the necessary resources and advice for their production.

Abengoa Bioenergía has developed internal capabilities that have also allowed it to diversify the procurement of raw material for its 2G plant in Hugoton. In this case, the plant will obtain agricultural waste that currently has no value for the farmer and from other energy crops in marginal areas which up to now have been abandoned.

Bioethanol origination

In addition to the bioethanol production capacity, which is marketed by the Trading companies, these also promote the activity of bioethanol origination from third parties in order to introduce said product into the pool and bring greater flexibility and competitiveness to the client portfolio.

Production

The main product, bioethanol, is produced in the plants in Europe, United States and Brazil. Obtained from cereal grain and sugar cane, through chemical processes and treatments, bioethanol is used to produce ETBE (a gasoline additive), or for its direct mixing with gasoline, with different percentages of bioethanol, the most common being e85, e15, e10 and e5 (gasoline with percentages of bioethanol of 85, 15, 10, and 5 % respectively).

The so-called DGS is obtained as a co-product of the bioethanol production process from grains. This is a high-protein compound which results from the extraction of starch in grains and is perfectly suited for the production of cattle feed.

Sugar pulp is obtained as a co-product of the bioethanol production process from sugar cane. This is used as a fuel in electricity co-generation plants next to the bioethanol production plants.

Marketing of Bioethanol, DGS and Sugar

Abengoa Bioenergía has offices at strategic points for the global trading and export of bioethanol, located in Rotterdam, Holland, with immediate access to the Europoort; in St. Louis, USA, in the heart of the main area for grain production and livestock breeding in the country; and in Sao Paulo, Brazil, in the main area for the production of bioethanol from sugar cane. From all of these regions, the demand generated in the European, American and Brazilian markets is met, both for bioethanol, as well as for DGS and sugar.

Market fluctuations, political conditions in the different geographic zones, and other factors affecting the company's activities, both in terms of the acquisition of raw materials and in the production of marketed products, are analyzed in detail from a global point of view, with the aim of obtaining a better vision of the world market. A thorough analysis and risk management means an improved process performance, always within the context of sustainable development, respecting the environment, human rights and the community as one of its maxims. Considering all of this, Abengoa Bioenergía has the opportunity to optimize supplies to different markets thanks to the management of the export and import decision and, therefore, it offers its clients the option of choosing the solution that best suits their needs, providing the necessary reliability and flexibility in the supply of bioethanol.

Co-generation

Some of the current bioethanol production facilities are equipped with co-generation systems that by using either natural gas or sugar cane pulp generate the vapor and the electricity required to operate the bioethanol plants. At present, the co-generation systems of the plants in Spain, Holland and Brazil, produce a greater amount of electricity than the plant's needs, the excess being fed to the electricity grids of each country, leading to greater profitability and sustainability of the facilities.

New technologies

Abengoa Bioenergía aims to establish a leading position in the biofuel industry and develop sustainable solutions for the transport sector and chemical bioproducts from renewable raw materials. The company's activities are focused on the development of technologies for the production of biofuels and chemical bioproducts from renewable raw materials, including grains, sugar cane, energy crops and agricultural waste (lignocellulosic biomass).

The company has pilot facilities (0.4 million liters annual capacity) in York (Nebraska, US), and demonstration plants (5 million liter annual capacity) in Babilafuente (Salamanca, Spain), biochemical and molecular biology laboratories in Babilafuente and Seville, and a laboratory with bench-scale plants in the University of Seville to test and improve catalysts.

In Europe, the company's activities are supported by incentives from the European Commission under the framework programs (Abengoa Bioenergía Nuevas Tecnologías is the sixteenth company to receive more support in the Seventh Framework Program), by the Government of Spain in various programs and by different local bodies.

This support shows the quality of the company's research and development programs as it requires that they be evaluated by third parties and the results obtained are excellent.