ABENGOA ABENGOA BIOENERGY
Transcription
ABENGOA ABENGOA BIOENERGY
ABENGOA ABENGOA BIOENERGY The global biotech ethanol company 2013 Annual report Activities report 2013 Annual report 1 ABENGOA BIOENERGY ABENGOA Index Letter from the CEO ......................................................................................................................................................... 2 Sustainability .................................................................................................................................................................... 5 Mission ....................................................................................................................................................................... 6 Vision .......................................................................................................................................................................... 6 Values ......................................................................................................................................................................... 6 Sustainable development policy .................................................................................................................................. 7 Our business ..................................................................................................................................................................... 8 Our business ............................................................................................................................................................... 9 Current market situation ............................................................................................................................................. 9 History ...................................................................................................................................................................... 11 Global presence ........................................................................................................................................................ 12 Key figures ................................................................................................................................................................ 13 Our products ................................................................................................................................................................... 15 Bioethanol ................................................................................................................................................................ 17 First-generation bioethanol ....................................................................................................................................... 17 Second-generation bioethanol .................................................................................................................................. 17 e85 ........................................................................................................................................................................... 18 Biodiesel ................................................................................................................................................................... 18 DGS .......................................................................................................................................................................... 19 Sugar ........................................................................................................................................................................ 20 Electricity .................................................................................................................................................................. 20 Carbon dioxide, CO2 ................................................................................................................................................ 20 New Technologies ..................................................................................................................................................... 20 Our activities ................................................................................................................................................................... 21 Introduction .............................................................................................................................................................. 23 Grain procurement .................................................................................................................................................... 25 Bioethanol origination ............................................................................................................................................... 26 Production ................................................................................................................................................................ 26 Marketing of bioetanol, DGS and sugar .................................................................................................................... 26 Cogeneration ............................................................................................................................................................ 27 New Technologies ..................................................................................................................................................... 27 Main achievements ................................................................................................................................................... 29 Production in Europe................................................................................................................................................. 31 Production in United States ....................................................................................................................................... 38 Production in Brazil ................................................................................................................................................... 48 Trading, logistics and raw materials origination ......................................................................................................... 51 Trading Europe ......................................................................................................................................................... 52 Trading United States ................................................................................................................................................ 54 Trading Brazil ............................................................................................................................................................ 56 New Technologies ..................................................................................................................................................... 57 Current projects ........................................................................................................................................................ 60 Lines of development ................................................................................................................................................ 64 Guaranty of activities ................................................................................................................................................ 69 Our stakeholders ............................................................................................................................................................ 73 Our shareholders ....................................................................................................................................................... 74 Our employees .......................................................................................................................................................... 74 Our customers .......................................................................................................................................................... 78 Our suppliers ............................................................................................................................................................. 79 Corporate governance ................................................................................................................................................... 87 Board of directors ..................................................................................................................................................... 88 Board committees ..................................................................................................................................................... 89 Management structure .................................................................................................................................................. 92 2013 Annual report 1 ABENGOA BIOENERGY ABENGOA Letter from the CEO Letter from the CEO 2013 Annual report 2 ABENGOA BIOENERGY ABENGOA Letter from the CEO Letter from the CEO Javier Garoz Neira Chief executive officer of Abengoa Bioenergy In recent years Abengoa Bioenergy has positioned itself as one of the biofuel leaders thanks to important developments: new production plants, geographical expansion, increased investments in technological development, implementation of new technologies and bioproducts and access to new markets. And in all of this we had to tackle the current general uncertainty. Already in early 2013 we expected the year to be challenging for us, but the company’s presence in key geographical areas has been crucial to address market movements and instability. As the year went on the global situation started to change and our margins improved. In Abengoa Bioenergy we are ready for whatever the future may hold. In 2013 we considered new horizons and new challenges together with a new way of managing our business model; they are starting to bear fruit and they will guide us to achieve a great success. We have introduced various changes in our organization, started key projects, implemented different tools to improve knowledge management and applied new ideas to our operations driving efficiency at all levels. And it has all been possible thanks to the daily work, commitment and effort of each of the professional in this company. Abengoa Bioenergy has been developing innovative technologies in the field of second-generation biofuels and other bioproducts for more than ten years, in search for better performance and sustainability across its facilities and always adapting to what its clients need. Technological development lies on the base of its activity and each of its projects shows its firm commitment to the development of renewable fuels as the way forward to ensure a safe and clean energy future. In 2013 we have identified new opportunities and have seen progress in new projects. Thanks to the great effort made we have put in operation the “waste to biofuels” (W2B) demonstration plant in Salamanca. This technology shall allow for efficient management or urban solid waste while producing energy and biofuels. This project means a great opportunity and is crucial for our future growth. Late last year we also celebrated the opening of the Hugoton plant in Kansas, USA, among the first ones in the world to produce second-generation ethanol from biomass. The cogeneration facilities started operations and they are already exporting energy. After having been working for more than ten years in enzymatic hydrolysis technology R&D, in the next months the Hugoton plant will start to produce cellulosic ethanol from biomass reaching a total output of 100 ML per 2013 Annual report 3 ABENGOA BIOENERGY ABENGOA Letter from the CEO year. The 2G technology and its success lead us to expect a significant growth of our business in the United States and Brazil. 2014 appears as a crucial year for Abengoa’s technological development. In addition to the start of production of cellulosic ethanol and the W2B technology we are developing second-generation ethanol from sugar cane bagasse and straw; the completion of design of Abengoa Bioenergy’s first n-butanol plant and the beginning of industrial-scale production of enzymes with proprietary technology for the market. Our vision of the future remains unaltered and we are looking forward to this new year with the firm conviction that we will take our company to the top. Both our commitment to ongoing research and sustainable development will be fundamental elements in our daily work. Development of new technological processes, use of a variety of feedstocks and achievement of new bioproducts will open for us the doors of new markets, which will allow us to diversify our revenue sources. We are confident that an improved economic situation will lead to increased biofuel use and we will keep working to reinforce their great value for our society and for sustainable development. 2013 Annual report 4 ABENGOA BIOENERGY ABENGOA Letter from the CEO Sustainability 2013 Annual report 5 ABENGOA BIOENERGY ABENGOA Sustainability Mission Contribute to the sustainable development of the fuel market for transportation and of chemical bioproducts by using renewable raw materials and green technologies that help to reduce GHG emissions and the environmental impact. Develop innovative technological solutions through continuous investment in R&D that provide more efficient production processes, raw material diversification and new product manufacture. Create shareholder value, focusing its activities on creating profitable and sustainable technological solutions. Contribute to the personal and professional development of its employees through ongoing training and by establishing and monitoring customized development targets and plans. Vision Become one of the leading worldwide companies in the production and marketing of biofuels and chemical bioproducts made from renewable raw materials. Be acknowledged as a leading global company in research and development and be well-known thanks to its technological innovation in converting biomass into fermentable sugars and then into bioethanol, biodiesel, kerosene for aviation as well as chemical bioproducts and in adapting first generation assets to diversify the product portfolio. Provide an optimal work environment in order to attract the best possible employees and maintain their excellence. Attract the attention of and be respected by the financial community as a result of sustained growth and technological innovation. Values Honesty in our relationship with clients, shareholders, partners and colleagues. Respect for individuals under all circumstances. Prioritization of teamwork using corporate tools to encourage information exchange. Promotion of a flexible, mental attitude in order to adapt to continuous change. Protection, defense and improvement of the environment. 2013 Annual report 6 ABENGOA BIOENERGY ABENGOA Sustainability Sustainable development policy At Abengoa Bioenergy we have as a main objective to become recognized as world leaders in the production of biofuels and in the development of innovative technology solutions that contribute to the sustainability of the transportation sector and in the manufacturing of biochemical products. This objective can only be achieved if the development of all our activities is closely tied to the basic pillars of sustainability: Respect for the environment. Social development. Economic benefit. To comply with the aforementioned principles at Abengoa Bioenergía we define the following sustainability actions in our mission, vision and values, which meet and direct all of our activities: Value creation. Certification of raw materials. Reduction of greenhouse gas emissions. Personal and professional staff development. Efficient use of natural resources. W2B technology demonstration plant in Babilafuente, Salamanca, Spain. 2013 Annual report 7 ABENGOA BIOENERGY ABENGOA Our business Our business 2013 Annual report 8 ABENGOA BIOENERGY ABENGOA Our business Our business Abengoa Bioenergy operates in the energy sector and carries out industrial production activities. It develops transport biofuels, bioethanol and biodiesel among others, as well as other chemical bioproducts using biomass (grain, sugarcane, cellulosic biomass, oil seeds and solid waste) as feedstock. Biofuels are used in the production of gasoline additives (ETBE, ethyl tert-butyl ether) or in direct blends with gasoline or diesel and reduce substantially the emission of greenhouse gases (GHG) and of other polluting gases into the atmosphere. Likewise, they contribute to energy supply diversification and security, reducing the dependence from the fossil fuels used in automobiles, air transport and the petrochemical industry, and contribute to achieving the targets of the Kyoto Protocol. Chemical bioproducts are identical to those currently produced by the petrochemical industry in terms of functionality, and at the same time, they are more sustainable and focused on immediate substitution in already existing markets. Current market situation The new regulations of United States and the European Union require the biofuel industry to comply with strict sustainability criteria. Within this context, markets are focusing on improving the existing first-generation biofuels and their management, as well as on developing the new generations of biofuels. 2G plant construction in Hugoton, Kansas, USA. 2013 Annual report 9 ABENGOA BIOENERGY ABENGOA Our business These regulations refer both to the reduction of greenhouse gas (GHG) emissions in the biofuel life cycle and to the certification of the origin of the raw material used in its production. In order to address the legal demands, valid for the first and second-generation biofuels, Abengoa Bioenergy has implemented accountability and verification systems for greenhouse gas (GHG) emissions and raw material certification systems, which allow differentiating between biofuels that are sustainable and those that must be rejected, in the battle against climate change. In terms of second-generation, the development of the enzymatic hydrolysis technology allows converting agricultural waste, wood waste and other potential energy crops into ethanol, without affecting the ecological balance or the food chain. At the same time, second-generation biofuels have a strong potential for reducing emissions compared to the fossil fuels that they replace. Such technology represents the most state-of-the-art and feasible technological solution among all of those being currently investigated. Biomass crop production. 2013 Annual report 10 ABENGOA BIOENERGY ABENGOA Our business History 2013 Annual report 11 ABENGOA BIOENERGY ABENGOA Our business Global presence The global biotech ethanol company The global biotech ethanol company Abengoa Bioenergy is the leading European biofuel producer (with a production capacity of 396 Mgal) and one of the main producers in United States (380 Mgal) and Brazil (62 Mgal), with a total installed production capacity of 839 Mgal distributed among 14 plants, in five different countries of three continents. Furthermore, it is constructing the world’s first second-generation (2G ) commercial plant. Abengoa Bioenergy Biomass of Kansas will have the capacity to produce 25 Mgal per year of bioethanol as from corn stover, wheat straw, and switch grass. In 2013, Abengoa Bioenergy continues with a process to create value for its shareholders. The company has identified opportunities that will allow the diversification of bioproducts and the production of higher value-added biofuels and compounds, thus generating greater environmental benefits. 2013 Annual report 12 ABENGOA BIOENERGY ABENGOA Our business Design production capacity Production plants Ecocarburantes Españoles Bioethanol: DGS: Electricity: 40 Mgal 75,000 t 180,000 MWh Bioetanol Galicia Bioethanol: DGS: Electricity: 50 Mgal 110,000 t 204,000 MWh Biocarburantes de Castilla y León Bioethanol: DGS: Electricity: 55 Mgal 150,000 t 204,000 MWh Abengoa Bioenergía San Roque Biodiesel: Gliceryne: 60 Mgal 18,500 t Abengoa Bioenergy France Bioethanol: DGS: 65 Mgal 145,000 t Abengoa Bioenergy Netherlands Bioethanol: DGS: Electricity: 125 Mgal 360,000 t 375,000 MWh Abengoa Bioenergy Corporation Colwich Bioethanol: DGS: 25 Mgal 70,000 t Abengoa Bioenergy Corporation Portales Bioethanol: DGS: 30 Mgal 75,000 t Abengoa Bioenergy Corporation York Bioethanol: DGS: 55 Mgal 145,000 t Abengoa Bioenergy of Nebraska Bioethanol: DGS: 90 Mgal 230,000 t Abengoa Bioenergy of Illinois Bioethanol: DGS: 90 Mgal 230,000 t Abengoa Bioenergy of Indiana Bioethanol: DGS: 90 Mgal 230,000 t Abengoa Bioenergia Brasil São Luiz Bioethanol: Sugar: Electricity: 29 Mgal 365,000 t 172,000 MWh Abengoa Bioenergia Brasil São João Bioethanol: Sugar: Electricity: 38 Mgal 305,000 t 201,500 MWh Abengoa Bioenergía Bioethanol: Biodiesel: DGS: Sugar: Gliceryne: 782 60 1,820,000 670,000 18,500 Mgal Mgal t t t Note: approximate figures. Abengoa Bioenergy New Technologies pilot plants not included. 2013 Annual report 13 ABENGOA BIOENERGY ABENGOA Our business Key figures Income Abengoa Bioenergy´s income has been practically stable in relation to the previous year, overcoming operational difficulties. (1M = 1,000,000) EBITDA Thanks to the diversification of products and raw materials as well as the proper management of our productive assets, Abengoa Bioenergy has managed to obtain an EBITDA over 241 M €, despite of the adverse economic and market conditions. Technological investment Abengoa Bioenergy strongly advances in the commercialization of cellulosic ethanol technology and continues to bet on the development of new technologies, along with the U.S. Department of Energy, the Spanish Ministry of Industry and the European Union Framework Program. In 2013, the investment date is 192 M€, similar to the previous year. 2013 Annual report 14 ABENGOA BIOENERGY ABENGOA Our business GHG emissions reduction The use of over 665.5 Mgal of biofuels traded by Abengoa Bioenergy reduces CO2-equivalent emissions by approximately 0.385 Mt, equivalent to the annual emissions of approximately 105,000 vehicles (1 Mgal = 1 million gallons) (1 Mt = 1 million tons) Sources: 1. Well-To-Wheels Analysis of future automotive fuels and powertrains in the European context 2. European Parliament and Commission directive relative to the promotion of the use of energy from renewable sources. Production of biofuels Abengoa Bioenergy currently has fourteen bioethanol and biodiesel production plants, distributed between Europe (Spain, France and Holland), United States and Brazil. Throughout 2013, the production of biofuels of the company reached 623 Mgal. (1 Mgal/y = 1 million gallons per year) (1 ML/y = 1 million liters per year) Production of electricity Some of the company’s bioethanol production facilities have cogeneration systems, which with a good use of sugar cane bagasse and other fuel, generate the steam and electricity necessary to operate the bioethanol plants. The production of electrical energy throughout the year 2013 has been of 1,472 GWh approximately. (1 GWh = 1 Gigawatt hour) 2013 Annual report 15 ABENGOA BIOENERGY ABENGOA Our business Our products 2013 Annual report 16 ABENGOA BIOENERGY ABENGOA Our products Bioethanol Today, we can state that Abengoa Bioenergy is a worldwide reference in the development of first-generation bioethanol and production of bioethanol as from biomass (2G). This year we have worked on a greater development of techniques and mechanisms for the production of second-generation bioethanol, that is, production of bioethanol as from agricultural waste, wood waste and other potential energy crops, without affecting the ecological balance or the food chain. First-generation bioethanol Bioethanol is obtained on an industrial scale from cereal fermentation, prior enzyme hydrolysis and after a distillation process which eliminates volatile impurities generated during the process, followed by another dehydration process which helps eliminate excess water from distillation. Under these conditions, bioethanol is directly mixed with petrol in an 85 % proportion (e85) and becomes a renewable substitute for petrol. Abengoa Bioenergy Brazil obtains bioethanol from sugar cane juice fermentation collected after sugar cane grinding and subsequent distillation. Bagasse, the fuel of the power generation system, is separated during grinding; and vinasse, used as fertilizer in sugar cane plantations, is separated during fermentation. Distilled bioethanol is the fuel used in "flex" engines, which run on both gas and bioethanol, or any blend of both. Second-generation bioethanol Compared to the traditional process to produce ethanol as from cereals, where the starch content is used, the production of ethanol as from agricultural waste requires a complex and intensive process to release the polymeric sugar structures present in the cellulose and hemicellulose, which account for 30 % to 50 % and from 20 % to 35 % of the plant material, respectively. The enzymatic hydrolysis process fractions the biomass into its most important components and hydrolyses the carbohydrates into simple sugars for the fermentation of the ethanol. Abengoa Bioenergy of Netherlands plant. 2013 Annual report 17 ABENGOA BIOENERGY ABENGOA Our products Its main advantages compared to fossil fuels are the following: Renewable origin. Biodegradable. Higher dependency on oil imports; its use contributes to increase energy autonomy and diversification. Cleaner fuel in polluting emissions such as sulphur oxide and particles. Contribution to local economies growth and income distribution, generating jobs in rural areas. Reduction of GHG emissions that overheat the surface of the earth and accelerate climate change. Easy to obtain and store. The bioethanol supplied by Abengoa Bioenergy to its clients in Europe meets the strict sustainability standards required under European Directives thanks to implementation in the supply chain of its own Voluntary Certification System, already approved by the EU Commission, called RBSA, or by complying with the specific requirements of some members states, such as Germany under BioOrdinance certification. e85 e85 is a biofuel produced by combining 85 % bioethanol with 15 % gasoline. The main advantage of e85 is its bioethanol content: the high percentage gives the fuel a higher-octane grade and better engine performance. This partially compensates for the lower LHV, reducing consumption differences. Bioethanol and gasoline can also be mixed to any proportion, and mixed fuels are legal in Spain, which makes fuel logistics extremely simple compared to other alternative means of energy for the automobile industry. Furthermore, the high bioethanol content (renewable) appreciably reduces fossil fuel consumption and significantly contributes to reducing greenhouse gas emissions and reducing energy dependence. The fact that e85 is different from gasoline means that a car designed to run on gasoline cannot use e85; vehicles designed specifically for this biofuel must therefore be used. These technologies are marketed under the name FFV. Most manufacturers in Brazil (Fiat, Ford, Volkswagen Peugeot, Renault, etc.) provide FFV technologies (Flexible Fuel Vehicles, FFVs capable of running on any mixture of gasoline and ethanol up to 85 %) in their different models, as do most US manufacturers Biodiesel Biodiesel is a renewable biofuel formed by long-chain fatty acid methyl or ethyl esters. If the esters that compose the biodiesel are methylic, they are called FAME (Fatty acid methyl ester). It is obtained through the chemical reaction of methanol (or bioethanol) with vegetable oils (rape, sunflower, soy, palm). It does not contain sulfur and, compared to oilderived diesel, greenhouse gas emissions are reduced (including CO2), as well as carbon monoxide (CO) emissions and emissions of particles and other polluting products. 2013 Annual report 18 ABENGOA BIOENERGY ABENGOA Our products Advantages: It is a cleaner source of fuel, renewable and for household use. Reduces oil dependency It can be used in all diesel engine vehicles, without requiring conversions, adjustments or special regulations in the vehicle engine. Easy to produce and store. It emits 40-80 % less greenhouse gases than fossil fuels. It increases engine lubrication and the flash point, thus reducing the danger of explosions due to gas emissions. It is biodegradable and non-toxic Improves air quality in urban areas. Does not pollute water. Reduces waste production. Biodiesel production creates new opportunities for sustainable rural development within the framework of a more market-oriented farming policy, since it promotes the development of energy crops and the creation of agribusiness, helping maintain employment and income levels in rural areas. DGS DGS or Distillers Grains with Solubles is the co-product resulting from obtaining bioethanol by converting the starch from cereals through fermentation into bioethanol and its subsequent extraction by distillation. This co-product is a source of vegetable protein, energy, fiber and vitamins, and is used as animal feed. Aware of the implications this entails, DGS undergoes strict quality controls that guarantee both its nutritional properties and those arising from enforcing current food safety legislation. As a consequence, Bureau Veritas certified DGS against an internal standard, covering all food quality and safety requirements in force in Europe, and work is also being performed to obtain a European specification for the product. DGS (distillers grains with solubles). 2013 Annual report 19 ABENGOA BIOENERGY ABENGOA Our products Sugar Abengoa Bioenergia Brasil obtains sugar from sugar cane grinding. The liquid is separated from bagasse during grinding. This sugar cane juice undergoes necessary filtration and chemical processes to neutralize its pH. The product in its solid state (crystal sugar) is obtained through distillation and subsequent centrifugation. The crystal sugar production of Abengoa Bioenergía Brasil is allocated to exportation and sale in the domestic market. Electricity The configuration of some processing plants allows for the production of steam and electricity to meet the plants’ demand of steam and electricity, while any excess electricity is exported to the grid. This generation of steam and electricity is known as cogeneration and it is a concept widely established in the plants in Spain and the Netherlands, where natural gas is used in gas turbines to this end. Likewise, in Abengoa Bioenergy Brazil, electricity is generated from the combustion of bagasse from sugarcane crushing, which feeds the boilers generating steam for processes and electricity generators. Carbon dioxide, CO2 Bioethanol production by fermentation using biomass as feedstock leads to CO 2 emission. In the global balance any use or capture of this CO2 entails a reduction of greenhouse gas (GHG) emissions from the production process and therefore, it increases the sustainability of facilities and final products. CO2 is currently being supplied to gas companies for its use in the industry or in greenhouses. In the US process CO2 is captured in the York (Nebraska) facilities. It is sold to beverage and frozen food companies. The Netherlands facilities supply CO2 to greenhouses near the plant. In France, the Abengoa Bioenergy France plant in Lacq supplies the carbon dioxide it produces for multiple applications (carbonation of beverages, cooling and freezing), thus replacing CO2 from petrochemical units. Likewise, Biocarburantes de Castilla y León (Spain) sells the CO 2 gas it produces during the biomass fermentations process. New Technologies Abengoa Bioenergía has the aim to develop innovative technological solutions through ongoing investment in R&D, seeking more efficient production processes and its co-products, unique and with high value to be recognized as world leaders in the production of biofuels and the development of innovative technological solutions that contribute to sustainability of the transport sector and in manufacturing biochemical products. Therefore, our R&D activities are included in technological lines that cover the fundamental aspects to achieve the development of new ways of producing biofuels and bioproducts, for which purpose we have teams of engineers and technologists highly specialized in process development and biochemistry with the capacity to improve enzyme producing organisms and optimizing fermentation processes. 2013 Annual report 20 ABENGOA BIOENERGY ABENGOA Our products Abengoa Bioenergy New Technologies, the company through which Abengoa Bioenergía manages its R&D activities, has a series of technologies on which it focuses all its effort and which give rise to products in different areas that can be used by the company or licensed to third parties: enzymatic hydrolysis, catalysis, enzymes, bioproducts. Robotic equipment room in the Abengoa Bioenergía Nuevas Tecnologías lab in the CITIUS center in Seville. 2013 Annual report 21 ABENGOA BIOENERGY ABENGOA Our products Our activities 2013 Annual report 22 ABENGOA BIOENERGY Our activities ABENGOA Introduction Abengoa Bioenergy is a benchmark company in the development of new technologies geared towards the production of biofuels,biochemical products and the sustainability of raw materials, channeling to such end a tremendous amount of resources into research. The presence of a trading division means that the company is also a service provider capable of offering global solutions, with impressive capacity for marketing and managing commodities, reliably backed by its global production and raw material procurement capacities and highly efficient operations ‟ cornerstones that afford reliability and critical mass, which are key to optimum business development. The combination of international trading and cellulosic bioethanol technology capacities of Abengoa Bioenergía, along with the agricultural, productive and local trading capacities gives rise to very important synergies that will make it possible to achieve significant growths in the bioethanol global market and have the technology that will enable obtaining lower costs per liter of ethanol. Abengoa Bioenergy contributes to sustainable development by marketing fuel compounds obtained from renewable sources (biofuels) through the use of environmentally-friendly technologies that help bring about a net reduction in polluting emissions, for use in both public transportation and private vehicles. The company develops innovative technological solutions through continuous R&D investment. These solutions are put into practice in production processes, allowing the company to enjoy the same production costs as for conventional fossil fuels, while affording our DGS coproduct a distinct competitive edge. Abengoa Bioenergy honors its commitment to creating value for shareholders and contributes to the personal and professional development of its employees through continuous training and by setting up and overseeing individualized plans. Abengoa Bioenergy creates new opportunities for sustainable rural development by providing incentives for energy crops and the creation of farming industries, thus helping to maintain employment and income levels in rural areas. Bioethanol and biodiesel are renewable and clean energy sources which, for some time now, have proved to be a reliable and effective replacement for gasoline and diesel fuel in vehicle engines, while also helping to diversify and improve the security of the energy supply. Their use, either in a pure state or blended with fossil fuels, reduces CO2 emissions, slows down climate change, and reduces the emission of polluting agents into the environment. Cornfield. 2013 Annual report 23 ABENGOA BIOENERGY Our activities ABENGOA The business unit covers the management of the following companies: Europe Biocarburantes de Castilla y León, S.A. Bioetanol Galicia, S.A. Ecoagrícola, S.A. Ecocarburantes Españoles, S.A. Abengoa Bioenergía, S.A. Abengoa Bioenergía Biodiésel S.A. Abengoa Bioenergía Inversiones, S.A. Abengoa Bioenergía Nuevas Tecnologías, S.A. Abengoa Bioenergía San Roque, S.A. Abengoa Bioenergy France, S.A. Abengoa Bioenergy Germany GmbH. Abengoa Bioenergy Hannover GmbH. Abengoa Bioenergy Netherlands, B.V. Abengoa Bioenergy Trading Europe, B.V. Abengoa Bioenergy UK Limited. Asa Bioenergy Holding, AG. SAS Abengoa Bioenergía Biomasse France. United States Abengoa Bioenergía Agroindustria Trading US Inc. Abengoa Bioenergy Biomass of Kansas, LLC Abengoa Bioenergy Biomass Funding, LLC Abengoa Bioenergy Company, LLC Abengoa Bioenergy Developments, LLC Abengoa Bioenergy Engineering & Construction, LLC Abengoa Bioenergy Funding, LLC Abengoa Bioenergy Hybrid of Kansas, LLC Abengoa Bioenergy of Illinois, LLC Abengoa Bioenergy of Indiana, LLC Abengoa Bioenergy Investments, LLC Abengoa Bioenergy of Kansas, LLC Abengoa Bioenergy Maple, LLC Abengoa Bioenergy Meramec Renewable, Inc. Abengoa Bioenergy of Nebraska, LLC Abengoa Bioenergy New Technologies, LLC Abengoa Bioenergy Operations, LLC Abengoa Bioenergy Outsourcing, LLC Abengoa Bioenergy Renewable Power US, LLC Abengoa Bioenergy Technology Holding, LLC Abengoa Bioenergy Trading US, LLC Abengoa Bioenergy Holdco, Inc. Abengoa Bioenergy US Holding, LLC Advanced Feedstocks of Kansas, LLC 2013 Annual report 24 ABENGOA BIOENERGY Our activities ABENGOA Brazil Abengoa Bioenergia Agroindustria Ltda. Abengoa Bioenergia Agroindustria Trading US Inc. Abengoa Bioenergia Brasil. Abengoa Bioenergía Inovaçoes Ltda. Abengoa Bioenergia Santa Fe Ltda. Abengoa Bioenergia Trading Brasil Ltda. The company’s activities can be grouped in 6 major areas: Grain procurement Bioethanol origination Production Bioethanol, DGS, and sugar trading Cogeneration New technologies Grain procurement A key element in the good results of the activities developed by the Bioenergy business group is the acquisition of cereal grain as raw material. Currently, the most important grain cereal for the production of bioethanol in Abengoa Bioenergy’s plants are wheat, barley, corn and sorghum, not only for the alcohol yield, but also for their great proteic proportion, highly valued in the feedstock sector (DGS). As for biodiesel production, the most used oils are soy and palm. Throughout its brief history, Abengoa Bioenergy has managed to acquire great experience, both in important purchases of grain in the market, and in the making of contracts directly with farmers, thus ensuring that the group’s plants have the amount of cereals they need. Similarly, the company’s experts have great knowledge of the applicable regulations to operate in the European Union and within the American Government. In Abengoa Bioenergy Brazil the company grows sugarcane while maintaining sustainable rural development methods, biodiversity, and regional economic growth. Through the subsidiary company Abengoa Bioenergy Agricola, production plants supply is assured, both establishing contracts with land owners, carrying out the necessary tasks for a combined use of the land, and with farmers, providing the necessary resources and advice for best performance. 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. 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 2013 Annual report 25 ABENGOA BIOENERGY Our activities ABENGOA Bioethanol origination In addition to Abengoa Bioenergy’s own bioethanol production capacity, which is marketed by the trading subsidiaries, bioethanol origination from third party producers is also a large part of the business, adding the additional capacity to a common pool, which allows for a greater flexibility and competitiveness towards the clients 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). En Abengoa Bioenergía San Roque se produce biodiesel a partir de aceites vegetales crudos de soja y de palma. Esta planta esta anexa a la Refinería de Cepsa a la cual suministra el biodiesel (FAME). De tal forma se obtiene un combustible compuesto de un 5 % de biodiesel y un 95 % de gasoléo. Otro producto que se obtiene en Abengoa Bioenergia Brasil es el azúcar a partir de los cultivos de caña de azúcar. Esto se realiza en las unidades agroindustriales de Saõ Luiz y de Saõ Joao, en el estado de Saõ Paulo. Para la producción de azúcar se utiliza los mismos equipos de extracción (mismas moliendas) y sistemas auxiliares, que para la producción de bioetanol a partir de caña de azúcar. Como coproducto del proceso de fabricación de bioetanol a partir de cereales se obtiene el denominado DGS, un compuesto altamente proteico, resultante de la extracción del almidón de los cereales que resulta óptimo para la fabricación de pienso para el ganado. Otro coproducto del proceso de obtención de bioetanol a partir de caña de azúcar, es el bagazo de caña, el cual se utiliza como combustible en plantas de cogeneración de electricidad las cuales están anexas a las plantas de producción de bioetanol. Marketing of bioetanol, 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. 2013 Annual report 26 ABENGOA BIOENERGY Our activities ABENGOA Cogeneration 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. Cogeneration plant in Abengoa Bioenergia Agroindústria ‟ Pirassununga. Sao Luiz, Sao Paulo, Brazil. 2013 Annual report 27 ABENGOA BIOENERGY Our activities ABENGOA New Technologies Abengoa Bioenergía Nuevas Tecnologías was established in early 2003 with the purpose of positioning Abengoa Bioenergy as an innovative leader in the bioenergy industry and become a world class producer of renewable energy by the development of manufacturing technologies and the implementation of the best and most efficient operation technologies. The team of engineers and scientists, together with other R&D centers, universities and industrial partners, develops innovative processes in order to increase the bioethanol yield in dry mills, improve the quality of co-products, develop new co-products and develop the biomass technology for the production of ethanol and co-products. Likewise, it leads the conceptual design and regulatory surveillance in terms of sustainability of the three geographic locations of Abengoa Bioenergía. As part of the business strategy, Abengoa Bioenergía Nuevas Tecnologías will develop and register the Intellectual Property to provide technology to third parties under management agreements. The mission of Abengoa Bioenergía Nuevas Tecnologías consists of developing and demonstrating sustainable technological solutions through science and innovation, in order to meet Abengoa Bioenergia’s strategy plan targets, which include the following: Abengoa Bioenergia’s strategy plan targets, which include the following: Developing and marketing biomass technologies at competitive prices. Developing urban solid waste fractions valorization processes to produce biofuels. Developing and implementing catalytic processes for the production of biofuels and bioproducts. Administering management systems (technological procedures and solutions) that ensure the compliance with the sustainability requirements of biofuels. Developing and marketing technology for the production of added-value chemical products from lignin, sugars and ethanol. Promoting the development of energy crops. Developing the biomass market. Developing and improving new enzymes for cellulose breakdown. Conducting technical-economic and advanced life-cycle analyses for the CO2 capture plant by means of microalgae production. Developing end-use programs for biofuels. 2013 Annual report 28 ABENGOA BIOENERGY Our activities ABENGOA Main achievements This year has been very challenging for Abengoa Bioenergy in the United States, Europe and Brazil. High feedstock prices have not endangered the company’s position and in 2013 the risk management capacity test has been successfully passed. Europe The main milestones achieved during 2013 in European operations are the following: Start of operations in the “waste to biofuels” (W2B) demonstration plant in Salamanca, Spain. Development of direct ethanol blending in Spain. Increase of direct DGS sales to global markets. Consolidation of sales of high blend ethanol (e10) in Europe, especially in France, Germany and Finland. Where requested by customers, delivery of 100 % of bioethanol with the leading biofuel sustainability certification according to the Renewables Directive, both under Abengoa’s own RBSA certification scheme and under the ISCC system. Agreement with the oil operator Total ACS (France) to produce second-generation ethanol for its use in motor sports. Sponsorship of a team in the Spanish Rally Championship. Abengoa Bioenergy supplied e85 ethanol to the first and only racing car in the country using a biofuel. Bioethanol Galicia received the award of the Regional Commission for Occupational Safety and Health in the Chemical Industry (COASHIQ). Organization of the XII World Biofuels conference. Implementation of the “Rainbow Project” to improve plant safety in the three geographical regions in which Abengoa Bioenergy operates. Bioetanol Galicia obtained the ISO 50001 certificate. It is the first Abengoa Bioenergy plant to achieve it. United States For Abengoa Bioenergía, this has been a year of recovery and growth in the United States. During 2013, the company reached the following achievements in the United States market: Fulfillment of more than 90 % of the construction milestones in the new production facility of Abengoa in Hugoton, Kansas. Successfully produced electricity from biomass at ABBK and sold power to the grid. Signed JV with Pacific Ag to meet biomass supply requirements of ABBK and increase efficiencies of biomass harvest. Successfully installed and operate corn oil separation at Abengoa Bioenergy of Indiana and Abengoa Bioenergy of Illinois to enhance co-product value. Successfully produced and marketed industrial grade ethanol at the York, NE facility for sale into the Far East. Enhanced credit limits and payment terms with key grain supplier-partners like Cargill, Gavilon, and CHS. Successfully sold receivables on the NYSE’s Receivables Exchange (TRE) as an alternative to factoring. 2013 Annual report 29 ABENGOA BIOENERGY Our activities ABENGOA Enhanced plant returns during poor margin period by subleasing excess railcars into the crude oil industry at high margins. Optimization of barge traffic by the Mississippi and Ohio rivers in order to increase the export activity of both ethanol and DGS (Distillers Grains with Solubles). Factored 100 % all sales Renewal of the ISO 9001, ISO 14001 and OHSA 18001 certifications for all the companies of USA. Continuation of the RBSA program in ABC York, ABI and ABIL to facilitate the classification of ethanol supporting the sustainability initiatives. Obtained the prize “Norfolk Southern Railroad Chemical Safety Award” by Abengoa Bioenergy of Illinois. Maintained the certification of the greenhouse gas inventory system of Abengoa Bioenergy companies in USA according to the ISO-14064 standard. Renewal of the Social Responsibility Program SA 8000 at Abengoa Bioenergy in United States. Continuation of the STOP program, obtaining an improvement in on-site work safety at the facilities of Abengoa Bioenergy United States, as well as in personnel performance. Brazil The company had the following achievements in the Brazilian market in 2013: „ „ „ „ „ „ „ „ „ „ „ „ „ „ „ Maintaining operations of two cogeneration plants in Brazil with a total installed capacity of 140 MW. Abengoa Bioenergy Brazil was selected by the Brazilian Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP) to develop technology and a plant for second-generation ethanol production using sugarcane as feedstock. Implementation of the “Paja” project in the São Luiz plant. Implementation of DuPont’s STOP program in the industrial and agricultural facilities of Abengoa Bioenergy Brazil Recertification of Abengoa Bioenergy Brazil’s plants under ISO 9001. Maintained ISO 14001 and OHSAS 18001 certifications for cogeneration in the Abengoa Bioenergía São João and Abengoa Bioenergía São Luiz plants. Maintained ISO 14064 certification for greenhouse gas (GHG) inventory. Maintained the Certificado Etanol Verde, guaranteeing compliance with the Brazilian agri-environmental protocol. Completion of the RBSA (RED Bioenergy Sustainability Assurance) certification in Brazil for ethanol exports to Europe, guaranteeing compliance with European Union directives on renewable energy sources. Completion of the RFS2 (Renewable Fuel Standard) certification for ethanol exports to the United States, guaranteeing compliance with Environmental Protection Agency (EPA) requirements. Completion of the LCFS (Low-Carbon Fuel Standard) for ethanol exports to California (US), guaranteeing compliance with California Air Resources Board (CARB) requirements Continuation of the “Renovation” project in Abengoa Brazil to qualify sugarcane harvesters for other activities. In 2013 cash & carry operation reached 0.9 MBRL with a sales volume of 10,000 m3 of ethanol. This operation aims at selling ethanol at the best price. Off-shore opening in the United States, allowing for the start of sugar trading operations with Czarnikow, Dreyfus and Glencore. First export of anhydrous ethanol in Brazil for Greenenergy, which opens the door for new businesses in 2014. 2013 Annual report 30 ABENGOA BIOENERGY Our activities ABENGOA 2013 Operating results Region Bioethanol (ML) Biodiesel (ML) DGS (t) Sugar (t) Gliceryne (t) Electricity (MWh) Europe 238 28 659,779 - 11,710 954,334 United States 316 - 849,213 - - Brazil 41 - - 451,077 - 517,644 Total 595 28 1,508,992 451,077 11,710 1,471,978 Production in Europe Throughout 2013, Abengoa Bioenergy has continued the operation of its three bioethanol plants in Spain (Ecocarburantes Españoles, Bioetanol Galicia and Biocarburantes de Castilla y León), with a total installed capacity of 546 ML per year; of its bioethanol plant in France, with a production installed capacity of 250 ML per year, operated by Abengoa Bioenergy France; and of its bioethanol plant in Europoort (Rotterdam, Holland), with a production installed capacity of 480 ML, turning it into the largest of the European Union. Besides, through Abengoa Bioenergía San Roque, it operates a biodiesel production plant in Cadiz, Spain, with an annual installed capacity of 225 ML. Major achievements in Europe In addition to ethanol marketing in 2013 Abengoa Bioenergy has worked in different projects to strengthen its operations in Europe. Opening on the “waste to biofuels” (W2B) technology demonstration plant in Babilafuente, Salamanca (Spain) capable of processing 25,000 t of urban solid waste (USW) and producing up to 1.5 ML of bioethanol for fuel. The demonstration plant uses the W2B technology developed by Abengoa Bioenergy to obtain second generation biofuels from urban solid waste by means of a fermentation and enzymatic hydrolysis process. Abengoa Bioenergy and Total ACS have reached an agreement to produce racing fuel with second generation bioethanol. Abengoa Bioenergy produces 2nd generation bioethanol from wheat straw in its facilities in Salamanca (Spain). Total ACS supplies fuel, lubricants and all kind of automobile fluids to one third of the Formula One teams. The blend of this 2nd generation bioethanol with racing fuel is carried out at the production facilities of Total ACS France to manufacture a specific grade fuel called CMG2, designed for different motorsports championships, such as GT Tour, FIA GT1 World, FIA GT and Blancpain Endurance Series, among others. This collaboration between Abengoa Bioenergy and Total ACS is one of the initiatives Abengoa Bioenergy is implementing to develop and diversify the biofuels market. The Spanish Independent Commission for Safety and Hygiene at Work in the Chemical Industry and Similar (acronym in Spanish, COASHIQ) recognizes the work of the sector’s companies that have achieved the best results for reduction in workplace accidents and has awarded again a prize to Bioetanol Galicia for offering improvements in terms of workplace safety in the chemical industry and similar. This is the second time in a row that COASHIQ awards a prize to Bioetanol Galicia, but also all Abengoa Bioenergy Europe plants have improved their results in reduction of accidents during 2013 so we expect more awards for them. 2013 Annual report 31 ABENGOA BIOENERGY Our activities ABENGOA Vehicle sponsored by Abengoa Bioenergy running on e85. Abengoa Bioenergy is sponsoring a team in the Spanish Rally Championship the first and only racing car in Spain running on bioethanol. The car has been adapted to use e85 (85 % ethanol + 15 % gasoline), which will be supplied by the Ecocarburantes Españoles plant in Cartagena (Murcia). Currently all Abengoa Bioenergy plants in Europe have been certified under the RBSA standard in this official database (called Nabisy) to certify biofuel sustainability and certificate accounting. This is the final step in the RBSA development process, which started with the implementation of traceability and greenhouse gas emission calculation processes in the company’s operations. The first regulated supply of product certified under the RBSA Standard and independent certification of supplying farmers, bioethanol production plants and all logistic facilities reinforces Abengoa Bioenergy’s commitment to sustainability in all its products. During 2013 all Abengoa Bioenergy Europe plants set goals to improve the energy efficiency of the process, as part of the strategy to reduce variable operational cost, using as reference ISO 50001 methodologies for an Energy Management System. As consequence of this, the companies have achieved important savings in energy, reducing their GHG, therefore improving their life cycles and productivity. On December, Bioetanol Galicia obtained the Certification in ISO 50001, being the first company in Abengoa Bionergy in achieving this certification. Within 2013 were launched Phoenix programs oriented towards reaching the excellence in operations. Among others were implemented actions focused in increasing yield, in testing new enzymes, in creating a competition between our suppliers, etc. As consequence of this, many of the plants have exceeded the expected yields for the year, and also exceeded the yearly production, achieving their best historical records. 2013 Annual report 32 ABENGOA BIOENERGY Our activities ABENGOA For the twelfth year in a row, the global biofuel conference “World Biofuels 2013” was held at the Hospital de los Venerables, headquarters of the Fundación Focus-Abengoa in Seville. The global biofuel conference World Biofuels 2013 intends to promote by means of a public discussion a true open forum for research, presentation and exchange of ideas and outcomes implementing all actions deemed appropriate based on the nature of the issues to be analyzed. Industry During 2013, through national and international sales activities and due to the experience acquired in the business, the company has managed to take hold as one of the main bioethanol managers and suppliers throughout Europe. The majority of the bioethanol produced comes from the plants in Spain, France and the Netherlands, but, additionally, bioethanol has been obtained from third party suppliers, which increases the supply capacity, provides business control at the continental level and confers a clear international projection of the company’s potential. In addition to the sale of bioethanol, during 2013, the development of an e85 supply network (bioethanol 85 %, gasoline 15 %) in Europe has been going on. This network is key for the expansion of bioethanol and it is set to quickly become a de facto reality in the coming years, providing the consumer with biofuels throughout Europe. Ecocarburantes Españoles plant. Cartagena, Murcia, Spain. 2013 Annual report 33 ABENGOA BIOENERGY Our activities ABENGOA Legislative advances in Europe In 2009, biofuels accounted for just 4 % of European transport fuel. That year, two European laws came into force that will stimulate and consolidate the European biofuel industry throughout this decade. The Renewable Energy Directive (2009/28/EC) requires that by the year 2020 at least 10 % of transport fuel in all countries of the European Union (EU) be made from sustainable renewable energy. To encourage the growth of lignocellulosic ethanol, consumption of it will be allowed to count double towards the requirement. A requirement of the Directive is that all Member States of the EU publish detailed action plans showing how incrementally, year by year, they intend to achieve the 10 % binding objective. These plans foresee that bioethanol consumption in Europe will double in size between now and 2020. Bioethanol gas station The other framework Directive, on fuel quality (2009/30/EC), requires that as from 2011, Europe’s fuel blenders must cut the greenhouse gas emissions from gasoline and diesel by at least 6% by the year 2020. Potentially this offers an even greater incentive to consume biofuels, since the oil industry has few options available to comply with this obligation and few, if any, are costless. To enable this massive expansion, the fuel quality Directive has doubled the maximum amount of bioethanol permitted in each litre of petrol from 5 % to 10 % throughout the Union. Consequently, in 2013, the European petrol standard was revised to permit this so-called E10 gasoline. It is now widely sold across France, Germany, Sweden and Finland. Another critical element of this legislation is the introduction of sustainability criteria to ensure that all biofuels sold in the European market deliver not only fuel, but social and environmental goals as well. These sustainability criteria aim at preventing the conversion of areas of high biodiversity and high carbon stock for the production of raw materials for biofuels. In practice this means that biofuels made of crops that have been grown on land that used to be rainforest, wetland, peatland or natural grassland with a unique ecosystem cannot be considered as sustainable. In addition, since April 2013 all deliveries of biofuels have had to demonstrate at least a 35 % greenhouse gas saving compared to fossil petrol and diesel. This minimum requirement will rise to 50 % in 2017. In order to receive government support or count towards the renewable energy and greenhouse gas targets, biofuels consumed in the EU, whether locally produced or imported, have to comply with these sustainability criteria. Compliance has to be checked either by Member States or through voluntary schemes which have been approved by the European Commission. In July of this year, the Commission recognised the first seven such voluntary schemes. These included Abengoa Bioenergy’s own RED Bioenergy Sustainability Assurance scheme. This recognition automatically applies in all 27 Member States, so we can be sure that our biofuel is formally accepted as sustainable throughout the European Union. 2013 Annual report 34 ABENGOA BIOENERGY Our activities ABENGOA Combined, these two Directives, their targets and their sustainability criteria, ensure the future of current biofuel production plants whilst offering special incentives and support for the development of the next generation of lignocellulose technology. They provide a stable, long-term growth and development path for bioethanol and the bioethanol industry. Production plants in Europe Ecocarburantes Españoles 95 % owned by Abengoa Bioenergía S.A. and 5 % owned by IDEA. Installed capacity of 150 ML of bioethanol per year. Annual DGS production capacity of 75,000 t (corn DDGS). Electrical power production capacity of 180,000 MWh per year. Annual grain consumption of 250,000 t (corn). Estimated annual consumption of wine and sundry alcohol of roughly 50 ML. The company Ecocarburantes Españoles, S.A. owns a bioethanol production plant in the Valle de Escombreras, in Cartagena (Murcia, Spain). It currently employs 75 highly qualified professionals. Part of the CO2 produced during the grain-to-ethanol transformation process is sold to facilities close to the plant, thereby eliminating the need for these companies to produce their own additional CO2 and, therefore, making the bioethanol production process even more efficient and curbing CO2 emissions into the atmosphere. Similarly, electricity is generated during the production process, which provides power for the entire plant, with the surplus delivered to the national power grid Bioetanol Galicia 100 % owned by Abengoa Bioenergía S.A. Installed capacity of 196 ML of bioethanol per year. Annual DGS production capacity of 110,000 t (corn DDGS). Electrical power production capacity of 204,000 MWh per year. Annual grain consumption of 365,000 t (corn). Estimated annual consumption of wine and sundry alcohol of roughly 50 ML. The plant is currently in operation in Teixeiro (A Coruña). It currently employs 72 highly qualified workers. 2013 Annual report 35 ABENGOA BIOENERGY Our activities ABENGOA The surplus electricity generated during the bioethanol production process, which greatly outstrips actual plant consumption, is delivered to the national power grid, thus enhancing the profitability of the process. Biocarburantes de Castilla y León 100 % owned by Abengoa Bioenergía S.A. Installed capacity of 200 ML of bioethanol per year. Annual DGS production capacity of 150,000 t (corn DDGS). Electrical power production capacity of 204,000 MWh per year. Annual grain consumption of 500,000 t (corn). Estimated annual consumption of wine and sundry alcohol of roughly 25 ML. The plant is located in Babilafuente, Salamanca, Spain. It currently employs 96 highly qualified workers. As with the other Spanish plants and in accordance with applicable law, plantgenerated electricity that is not employed in bioethanol production is delivered to the power grid. Abengoa Bioenergy France 69 % owned by Abengoa Bioenergía S.A. y 31 % owned by Oceol. Installed capacity of 250 ML of bioethanol per year. Annual DGS production of 145,000 t. Annual grain (corn) consumption of 500,000 t. Estimated annual consumption of wine and sundry alcohol of roughly 50 ML. Abengoa Bioenergy France S.A. is the owner of the plant and is a joint venture of Abengoa Bioenergy and Oceol, an entity made up by the main farming and industry cooperatives in the region. The company has got 73 highly-qualified employees. This plant employs corn and low-quality vegetable alcohols as raw materials and is located on the Petrochemical Platform at Lacq, Pyrénées-Atlantiques (France). 2013 Annual report 36 ABENGOA BIOENERGY Our activities ABENGOA Abengoa Bioenergy Netherlands 100 % owned by Abengoa Bioenergía S.A. Projected annual bioethanol production capacity of 480 ML. Annual DGS production capacity of 360,000 t. Electrical power production capacity of 375,000 MWh per year. Annual grain consumption of 1.2 Mt. Abengoa Bioenergy Netherlands B.V. is the holding company of the plant that is located in Europoort (Rotterdam, Holland). The company employs 84 highly qualified professionals. Biomass Plant 100 % owned by Abengoa Bioenergía S.A. Cereal straw-based bioethanol production capacity of 5 ML per year. The plant is managed by Abengoa Bioenergía Nuevas Tecnologías and its construction was completed in December 2008. Its integrated operation started in September 2009 and it is the first plant in the world operating with enzymatic hydrolysis technology at this production level. It is located within the Biocarburantes de Castilla y León plant, meaning that both facilities share common services and process chains. The ethanol it produces is distilled to 42 % and then concentrated and dehydrated in the first-generation bioethanol plant. The facility is being used to improve the design of the commercial plants of tomorrow, gauge operational costs, identify bottlenecks and streamline operations. 2013 Annual report 37 ABENGOA BIOENERGY Our activities ABENGOA Abengoa Bioenergía San Roque 100 % owned by Abengoa Bioenergía S.A. Annual biodiesel production capacity of 225 ML. Annual crude glycerin production capacity of 18,500 t. Annual vegetable oil consumption of 205,000 t. The plant is located on a site annexed to Cepsa’s Gibraltar refinery on the Palmones de San Roque industrial estate (Cadiz, Spain). It has been designed to operate with different kinds of vegetable oil - soybean, rapeseed and palm - and does not therefore depend on just one supply source. The plant directly employs 57 highly qualified workers. Production in United States Abengoa Bioenergy is one of the largest bioethanol producers in the United States. The company has an installed annual production capacity of approximately 370 Mgal, at six plants distributed across Nebraska, Kansas, New Mexico, Indiana and Illinois. Abengoa Bioenergy is also one of the largest traders of ethanol and distiller’s grains for animal feed with a customer base that includes Shell, Exxon-Mobil, Chevron, Valero and Flint Hills Resources. In the USA, most of the ethanol is marketed in the form of e10 (10 % ethanol/ 90 % gasoline). The three original Abengoa US plants in Colwich, Kansas, Portales, New Mexico and York, Nebraska, are formed as Abengoa Bioenergy Company (ABC). Newer companies have been formed in recent years including the continuous fermentation plants in in Ravenna, Nebraska (ABNE), Madison, Illinois (ABIL) and Mt Vernon, Indiana (ABI), as well as one of the world’s first commercially feasible second-generation plants nearing completion in Hugoton, Kansas (ABBK). US endeavors also include Abengoa Trading (ABT) for commodities and Abengoa New Technologies (ABNT) for exploring groundbreaking renewable fuels opportunities. Abengoa Bioenergy US makes every effort continuously to employ best practices to optimize processes, improve performance and minimize risk within the production, commercialization and R&D areas. In June of 2013, Abengoa initiated a global efficiency initiative designed to add over $8 M to EBITDA by the end of 2014 through product optimization, energy conservation and improved work processes. Abengoa is a market leader in second-generation biofuels and sustainability. All the company’s production assets comply with the United Nations Global Compact guidelines on human rights, labor rights, environment sustainability and the fight against corruption. 2013 Annual report 38 ABENGOA BIOENERGY Our activities ABENGOA Major achievements in United States During 2013 Abengoa Bioenergy has worked on several projects that consolidate its operations in United States: On December 27, Abengoa Bioenergy Biomass of Kansas successfully achieved a major milestone with the production of renewable electricity. This event qualifies the Hugoton, Kansas, facility for the US Treasury 1603 Grant Program. The facility, with planned commercial operations commencing during 2014, will be the first second-generation (2G) commercial plant in the world using its first-of-kind technology. The project has been financed by Abengoa and by the US Department of Energy (DOE), thanks to the 932 Aid Program and DOE’s support as guarantor. The construction phase has created an annual average of approximately 300 jobs and the final operations will generate an annual income of approximately 5 M$.The plant will have a total production capacity of 95 ML of clean and sustainable cellulosic ethanol, and will create 78 fixed positions. The first corn stover collection began in 2011 and continued during 2013. More than 100,000 tons (200,000 bales) are available for the plant’s operational start up. The costs of gathering the biomass are dropping since the collection techniques, the equipment and the economies of scale continue improving. All North American companies have official certifications pursuant to the requirements of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007, highlighting Abengoa’s commitment to quality, safety and environment. The auditing processes to renew certifications were completed in 2012 in order to comply with the requirements of the ISO 9001, ISO 14001 and OHSAS 18001 certificates. In 2013, Abengoa Bioenergy’s US companies maintained the certificate of compliance with the ISO-14064 standard for the entire inventory of the greenhouse gas (GHG) systems. Abengoa constantly works to reduce the carbon footprint of its biorefineries and to reduce GHG emissions. The company has continued with the implementation of the STOPTM safety program in all the plants, which has not only contributed to improve the occupational safety environment but also improve plant efficiency. Abengoa Bioenergy has been recognized as “Top 50” company in the St. Louis area for the fourth consecutive year. The “Greater St. Louis Top 50” is an annual program of awards granted by the St. Louis Regional Chamber and Growth Association (RCGA) to give prizes to the best companies of the St. Louis region. The award to Abengoa Bioenergy was mainly based on its leading position in the ethanol industry, committed to an aggressive growth throughout the world, as well as on its leadership in the development of new and improved technologies regarding the production of ethanol, including cutting-edge technologies in secondgeneration biofuels. On March 6, 2013 all ABUS companies certified to the Social Responsibility Program SA 8000 the first international certification record of Human Resources Management and an important aspect of Corporate Social Responsibility. The objective of the certification is the guarantee of workers’ rights, systematizing the processes regarding human resources and supplier’s management. In June of 2013, Abengoa Bioenergy of Illinois received the “Norfolk Southern Railroad Chemical Safety Award “for the second year in a row. The award is granted every year to recognize those companies and facilities that ship, without incidents, throughout the year more than 1,0000 rail cars of merchandise 2013 Annual report 39 ABENGOA BIOENERGY Our activities ABENGOA containing federally regulated hazardous material through the Norfolk Southern rail network. The Norfolk Southern Railway is a Class I rail network in United States, owned by the Norfolk Southern Corporation. The company operates around 32,000 route km in 22 eastern states. To achieve these numbers, Abengoa Bioenergy of Illinois has safely loaded ethanol 24 hours a day and 7 days a week. Abengoa Bioenergy of Illinois loaded over 2,000 rail cars and 3,600 trucks and safely transported more than 322 ML of ethanol in 2012. On June 18, 2013, Abengoa Bioenergy Company ‟ York received the “BNSF Product Stewardship Award” for the safe transportation of hazardous materials by rail. The company was selected for the award for transporting a minimum of 500 loaded tank cars of hazardous materials during the previous year with zero non-accidental released during the entire transportation cycle and for successfully implementing the ethics of Product Stewardship under the American Chemistry Councils responsible Care® initiative. In October, Abengoa Bioenergy Chesterfield Offices received recognition for the second consecutive year from the St. Louis Regional Commerce and Growth Association (RCGA) honoring achievement in waste reduction, water conservation, energy conservation, indoor environmental quality and education outreach as part of its “St. Louis Green Business Challenge”. The Abengoa Green Team was awarded the Circle of Excellence Honor for Greatest Gain in sustainability strategies and programs. Abengo Bioenergy US bioethanol plants in Colwich, Kansas and Portales, New Mexico were idled in 2011 due to the low availability of raw materials as a result of severe drought conditions in the USA. These two plants remained down in 2013. Colwich and Portales are energy efficient facilities designed to produce 95 and 125 ML of ethanol respectively per year using sorghum (millet) as raw material. Millet is a cereal crop normally grown without need of irrigation. Abengoa is taking advantage of the inactivity time to carry out improvements in the treatment of wastewater and other production processes. Crop discharge in Hugoton plant, Kansas, USA. 2013 Annual report 40 ABENGOA BIOENERGY Our activities ABENGOA Legislative advances in United States United States Capitol. Washington D.C. Federal legislation As anticipated, due to a highly partisan Congress and split party control of the Senate and House of Representatives there was no significant legislation relating to biofuels passed by the US Congress in 2013. Fortunately for the biofuels industry, the Renewable Fuel Standard (RFS) which was passed as a part of the Energy Independence and Security Act of 2007 and which is the primary driver for the ongoing use of ethanol in the United States, and especially for the continued development and expansion of cellulosic ethanol, is not scheduled to expire until 2022, and is unlikely to be modified in the near future without some significant change in external factors. In addition to the RFS, two other significant pieces of legislation that are supportive of investment in the development of cellulosic ethanol and other second generation biofuels include the Energy Title provisions of the 2008 Farm Bill legislation, and the accelerated depreciation allowances and production tax credit for cellulosic ethanol (PTC). The 2008 Farm Bill expired on September 30, 2013, but both the House and Senate have passed individual legislation to pass a new Farm Bill (which includes many of the same Energy Title programs). This legislation is likely to be agreed upon in a conference committee and a new Farm Bill is expected to pass sometime in early 2014. The PTC expired on December 2013 Annual report 41 ABENGOA BIOENERGY Our activities ABENGOA 31, 2013 and there are pending proposals to renew that credit, or to incorporate it into some type of more significant overall tax reform policy. The ethanol industry is hopeful that this legislation will be continues in 2014, but the future of this legislation is not certain. Administrative regulations Renewable Fuel standard regulations As previously noted, congress adopted an enhanced Renewable Fuel Standard (RFS) as a part of the Energy Independence and Security Act of 2007, requiring the increased use of ethanol (from 9 to 36 billion gallons per year) by 2022. This legislation continues to be the main driver for the growth of the ethanol industry ‟ particularly second generation cellulosic ethanol. Regulations implementing the RFS initially became effective July 1, 2010, and EPA continues to fine tune these regulations over time. Most recently in 2012, EPA approved and published a final GHG life cycle analysis and a formal pathway for grain sorghum (or milo), when combined with other GHG reduction technology, to qualify as an Advanced Biofuel under the RFS definitions. Additionally, numerous other applications for specific pathways to Advanced Biofuels certification have been filed with (and some have been approved by) EPA, which will increase the opportunity for ethanol producers to produce and sell more valuable Advanced Biofuels. Overall the law and the regulations as revised and implemented are favorable for the ethanol industry. The RFS legislation established very aggressive targets for production of Advanced and Cellulosic Biofuels, but EPA was given flexibility in implementation through authority to evaluate and modify these volumes on an annual basis to consider actual production and availability of the fuels. As a result, the required volumes for cellulosic ethanol have been reduced by EPA for the first four years of the program due to a lack of production and availability of adequate cellulosic ethanol volumes. However, even with the reductions in cellulosic ethanol volumes required, EPA has maintained the overall total volume requirements through 2013 for the RFS for as initially scheduled in the legislation. This has the effect of allowing other Advanced Biofuels to replace cellulosic gallons that are not yet in production. Fortunately, several cellulosic ethanol developers, including Abengoa and other large international companies such as DuPont, BP and others, have commercial scale production projects that are in construction now and will prove these new technologies on a commercial scale, making future expansion in cellulosic ethanol a quicker and achievable reality. EPA has proposed a rule for 2014 which would reduce both cellulosic and Advanced Biofuels, as well as total biofuels requirements from the very aggressive statutory requirements. The ethanol industry is lobbying against this reduction, and this proposal is not yet finalized and may well be modified by EPA before publication as a final rule. Regardless of the final numbers proposed by the EPA, the RFS is still a major market driver for ethanol and other renewable biofuels. E15 approval and implementation In 2010 and 2011 EPA announced their approval of increased ethanol blends in gasoline up to 15 % (E15) for use in 2001 and newer model year vehicles. However, there were still some hurdles to overcome before E15 could actually be blended and sold. During 2012 the EPA satisfied all of these final technical federal requirements (including approval of health effects testing data and a formal Misfueling Mitigation Plan) which has allowed the first gallons of E15 blend gasoline to be sold in approximately 10 states in 2013. Other states are expected to follow quickly as final state technical issues are resolved, and E15 becomes more widely available. This means that over 70 % of all cars on the road (which consume over 75 % of the gasoline sold within the US) can now legally use ethanol blends up to E15, and millions of those vehicles designated as Flex Fuel Vehicles (FFVs) can use an 85 % ethanol fuel known as E85. This positive decision by EPA will help to open up more ethanol demand and should ultimately have a positive effect on ethanol prices. 2013 Annual report 42 ABENGOA BIOENERGY Our activities ABENGOA State legislation The most significant piece of state legislation for the ethanol industry continues to be the implementation by California of its Low Carbon Fuel Standard (LCFS) Legislation. On April 23, 2009 California adopted its draft plan to reduce emissions under a LCFS which is being implemented pursuant to a 2007 Executive Order and supporting state legislation. The goal of this law is to reduce emissions from California’s transportation fuels by at least 10 % by 2020. California, like the EPA in its proposed rules implementing the Federal RFS, has attributed to ethanol use an impact factor for Indirect Land Use Change (ILUC) emissions. Although both California and the EPA acknowledge ethanol’s GHG emissions to be significantly lower than gasoline when only direct factors are considered, the addition of ILUC emissions as improperly calculated by CARB, resulted in the conclusion that ethanol’s total GHG emissions are not significantly better than gasoline, and in some specific cases could be worse. The ethanol industry continues to negotiate with and offer technical support to California to establish that California has improperly attributed these ILUC emissions to ethanol alone and that indirect effects are not calculated or attributed to gasoline or any other fuels. In fact, The California Air Resources Board (CARB) appointed an Expert Working Group (EWG) to continue to evaluate these carbon intensity numbers, and that group has made a formal recommendation that CARB significantly reduce the ILUC emissions attributed to ethanol fuels. However, CARB has not yet made any voluntary decision regarding modifications to the rules despite the volume of evidence submitted questioning their initial conclusions. In addition to negotiation with the state to revise the ILUC provisions of the LCFS, several members of the ethanol and petroleum industries filed a lawsuit against the State of California to prohibit implementation of the LCFS in its current form on the basis that it violates the commerce clause of the U.S. Constitution by restricting manufacturing processes outside the states borders without tying that restriction to emissions that actually occur within the state. In January of 2012 a Federal Court judge in California declared the LCFS law unconstitutional and unenforceable by California. This ruling was appealed by the state and was overturned by the Federal Court of appeals in 2013. In January of 2014, the full Appellate Court refused to review the case. As a result, although further appeals may take place, for now the law is in full force and may continue to be implemented by the state of California. The alleged problem with the California law is that it does not apply proven scientific analysis or principals, and its implementation discriminates against other states outside of California. If good science prevails and ILUC impacts are evaluated on proven scientific analyses rather than assumptions, LCF programs have the potential to be extremely beneficial for the ethanol industry as they recognize ethanol’s significant benefits in reducing direct GHG emissions when compared to conventional petroleum based fuels. However, if the California LCFS is implemented as currently proposed, the impact on Abengoa Bioenergy will be both negative (in that the California fuel market will be more difficult to access for most Midwestern grain ethanol), and also positive (in that Abengoa Bioenergy produces a lower carbon ethanol than some other ethanol manufacturers, which could give the company a slight advantage over other Midwestern ethanol in the California market). 2013 Annual report 43 ABENGOA BIOENERGY Our activities ABENGOA Production plants in United States Abengoa Bioenergy Corporation ‟ Colwich 100 % owned by Abengoa Bioenergy Corporation. Installed bioethanol production capacity of 95 ML per year. Annual installed DGS production capacity of 70,000 t. Combined annual consumption of corn and sorghum of 240,000 t. The plant is currently idle pending market improvements. Production capacity amounts to 95 ML per year, achieved through continuous batch cooking and fermentation processes. When operating the plant employs 46 highly qualified workers. It is one of the oldest dry mill bioethanol facilities in the United States, having been operating for the last 25 years. The DGS it produces is not dried in the process and 100 % of the co-product is sold in its natural state. The plant can process corn and sorghum at the same time. Abengoa Bioenergy Corporation ‟ Portales 100 % owned by Abengoa Bioenergy Corporation. Installed bioethanol production capacity of 115 ML per year. Annual installed DGS production capacity of 75,000 t. Annual consumption of corn and sorghum of 260,000 t. Expansion work was completed in 2006 to double production capacity by utilizing batch cooking and fermentation processes, with two separate distillation and dehydration stages. The DGS it produces is not dried in the process and 100 % of the coproduct is sold in its natural state. The plant can operate with corn and sorghum simultaneously and has an annual installed bioethanol production capacity of 115 ML. When operating, the fully plant employs 46 highly qualified workers. The plant is currently idle pending market improvements. 2013 Annual report 44 ABENGOA BIOENERGY Our activities ABENGOA Abengoa Bioenergy Corporation ‟ York 100 % owned by Abengoa Bioenergy Corporation. Installed bioethanol production capacity of 210 ML per year. Annual installed DGS production capacity of 145,000 t. Annual corn consumption of 520,000 t. The plant currently operates at 100 % capacity and continues to report excellent efficiency and consistent operations. More than 50 % of the produced CO2 is captured and refined by an on-site customer. The facilities also provide services and logistical support to Abengoa’s adjacent pilot biomass plant. Production capacity amounts to 210 ML per year, achieved through continuous batch cooking and fermentation processes. The plant currently employs 55 highly qualified workers. Abengoa Bioenergy of Nebraska 100 % owned by Abengoa Bioenergy. Installed bioethanol production capacity of 340 ML per year. Annual installed DGS production capacity of 230,000 t. Annual corn consumption of 825,000 t. Construction on the plant got underway in 2005 and was completed in 2007. The plant is currently operating at 100 % capacity according to specifications and boasts an installed bioethanol capacity of 340 ML per year, achieved through continuous fermentation. It employs 60 highly qualified workers. The facility is the first in North America to utilize continuous fermentation technology. The project includes a double railway circuit for simultaneous loading and shipment of 10 ML of bioethanol in 95 tank cars. The plant is designed to recycle all process water, which is then treated and made ready for reuse. The plant therefore consumes less water, produces minimal pollution and has the minimum possible impact on the ecosystem. 2013 Annual report 45 ABENGOA BIOENERGY Our activities ABENGOA Abengoa Bioenergy of Indiana 100 % owned by Abengoa Bioenergy. Installed bioethanol production capacity of 340 ML per year. Annual installed DGS production capacity of 230,000 t. Annual corn consumption of 825,000 t. The plant is located near Evansville, Indiana, in the so-called Corn Belt and next to the Ohio River, one of the country’s main river routes. The bioethanol and DGS produced on-site can be transported by truck, train or boat to supply the markets on the eastern side of the United States, or exported to other markets. The Indiana plant currently employs 60 workers. Abengoa Bioenergy of Illinois 100 % owned by Abengoa Bioenergy. Installed bioethanol production capacity of 340 ML per year. Annual installed DGS production capacity of 230,000 t. Annual corn consumption of 825,000 t. The plant in Madison, Illinois, is sited next to the Mississippi River, one of the main communication and transport arteries running through the U.S. Midwest. The Illinois plant currently employs 60 workers. 2013 Annual report 46 ABENGOA BIOENERGY Our activities ABENGOA New plant Abengoa Bioenergy Biomass of Kansas. Under construction. 100 % owned by Abengoa Bioenergy. Annual biomass-to-bioethanol production capacity of 95 ML. Daily biomass consumption of 900 t, including power cogeneration fuel. Work continues in the construction of the first commercial scale plant capable of producing second-generation ethanol from biomass, located in Hugoton, Kansas. The project is expected to provide an average of approximately 300 construction jobs until completion and it will be commissioned in two phases: cogeneration was commissioned during December 2013; ethanol production is scheduled for spring 2014. The design of the plant uses a new and innovative application of a proven technology, combined with the constant improvement of genetically modified organisms (GMO) for yeast and enzymes. Upon completion, the facility will provide 78 full time job positions. 2013 Annual report 47 ABENGOA BIOENERGY Our activities ABENGOA Production in Brazil Brazil is one of the world’s largest markets for bioethanol, and bioethanol production is expected to continue growing sharply thanks to the success of flex-fuel vehicles, which currently account for nearly 90 % of vehicles sold in Brazil and which can run on either gasoline or bioethanol. Abengoa Bioenergy is the only company worldwide that operates in the world’s three largest bioethanol markets: Europe, the United States and Brazil. Having streamlined operations in Brazil, the company is reporting sharp growth in production throughout all its existing plants. It is also weighing up the merits of constructing a new plant and is marketing its production overseas more effectively, thanks to the sales networks the company has in place. Moreover, the company is making technological advances and improving sugarcane bagasse to cellulosic ethanol technology so as to increase production in the mid-term and cut costs efficiently. The company currently operates three plants: two sugarcane-to-bioethanol plants, with an annual installed capacity of approximately 255 ML of ethanol and 670.000 t of sugar. In 2013 the company has continued operations in its two cogeneration plants in Brazil, with a nominal installed capacity of 140 MW. Total production has reached 332,155 MWh, which have been marketed by means of regulated contract with the Brazilian electric sector. These cogeneration units use sugarcane bagasse as fuel and produce the steam required to generate electricity and drive production processes. The cogeneration plants are located in the São Luiz plant, in the city of Pirassununga, and in the São João plant, in the city of São João da Boa Vista. Major achievements in Brazil In addition to the commercialization of bioethanol, during 2013 Abengoa Bioenergy has worked on several projects that consolidate its operations in Brazil. „ In September 2013, Abengoa Bioenergía Brasil started operations of a new sugarcane straw feeding lines for the boilers of the cogeneration unit in Sao Luiz, in order to increase electric energy production time. This project is an integrated part of the development of the 2G ethanol production plant in Sao Luiz, currently in the engineering and permit stage. „ As a continuation the selection of Abengoa Bioenergía Brazil by the Brazilian Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP) to adapt its second-generation ethanol technology to sugarcane biomass in 2012, in 2013 the process has been completed with the appropriate financial contract and implementation of field tests for the harvesting of sugarcane straw and the start of operations of the straw feeding system in the Sao Luiz cogeneration unit. „ In this project the company will be responsible for implementing the technology required to complete it, as well as to undertake the engineering work for the development of a plant capable of producing 100 ML of secondgeneration ethanol per year. To this end it will build on the experience and own technology applied in its plants in Europe and the United States, producing ethanol by enzymatic hydrolysis from corn biomass. 2013 Annual report 48 ABENGOA BIOENERGY Our activities ABENGOA „ In 2013 Abengoa Bioenergy Brazil has renewed the ISO 9001 certification for its plants producing ethanol from sugar and has maintained ISO 14001 and OHSAS 18001 certifications for its cogeneration plants in São João and São Luiz, as well as the ISO 14064 certification for Greenhouse Gas (GHG) Inventory and the Etanol Verde certification, guaranteeing compliance with the Brazilian agri-environmental protocol. „ Abengoa Bioenergy Brazil has obtained in 2013 (i) the RBSA Certification (RED Bioenergy Sustainability Assurance) for ethanol exports to Europe, guaranteeing compliance with the European Union Directives for renewable energy sources. (ii) the RFS2 Certification (Renewable Fuel Standard) for ethanol exports to the United States, guaranteeing compliance with the Environmental Protection Agency (EPA) requirements, and (iii) the LFCS Certification (Low-Carbon Fuel Standard) for ethanol exports to California (US), guaranteeing compliance with the California Air Resources Board (CARB) requirements. „ Thanks to a great extent to the above certifications, as well as to good marketing practices we have been able to complete the first export of anhydrous alcohol to Greenergy, which opens the door to new business operations in 2014. „ The implementation of technological development and environmental programs started the previous year has continued in order to speed up agricultural mechanization processes. There is a legal mandate in São Paulo to put an end by 2021 to sugarcane field burning, which facilitates manual harvesting. Production plants in Brazil Abengoa Bioenergia Brasil ‟ Pirassununga 100 % owned by Abengoa Bioenergía. Installed capacity of 110 ML of bioethanol per year. Annual sugar production of roughly 365,000 t. Electrical power production capacity of 172,000 MWh per year. Annual sugarcane consumption of 3.7 Mt. This electric energy cogeneration plant has got an installed capacity of 70 MW. It uses sugarcane bagasse as raw material coming from the feedstock used in its own sugar and ethanol manufacturing plants. With this plant in operation, Abengoa Bioenergía Brasil adds a third important product, energy, to the sustainable development of its bioenergy businesses in Brazil. 2013 Annual report 49 ABENGOA BIOENERGY Our activities ABENGOA Abengoa Bioenergia Brasil - São João 100 % owned by Abengoa Bioenergía. Annual installed bioethanol capacity of 145 ML. Annual sugar production in the order of 305,000 t. Annual electricity production capacity 201,500 MWh. Annual sugar cane consumption of 3.3 Mt. This electric energy cogeneration plant has got an installed capacity of 70 MW. It uses sugarcane bagasse as raw material coming from the feedstock used in its own sugar and ethanol manufacturing plants. With this plant in operation, Abengoa Bioenergía Brasil adds a third important product, energy, to the sustainable development of its bioenergy businesses in Brazil. 2013 Annual report 50 ABENGOA BIOENERGY Our activities ABENGOA Trading, logistics and raw materials origination Abengoa Bioenergy provides solutions for its customers’ bioethanol and grain marketing requirements. It uses its experience and alliances to maximize profit margins, minimizing operational risks through a combination of short and long-term contracts, and price differential estimate structures. Based on the years of production experience, the company experts have gained detailed knowledge of bioethanol and the raw materials market and developed relationships with the major oil companies, and the major trade and raw-materials-logistics multinational companies. Regarding raw materials, all necessary tools and contractual agreements with providers have been implemented, in order to certify all raw materials consume by the company’s plants, according to the sustainability criteria in the European policies, and in accordance with the demanded requisites by the bioethanol clients. In its aim of offering maximum quality and nutritional safety, the company’s DGS experts provide assistance to the animal feed production market, for a greater optimization of DGS use in products meant for animal feed for cattle, pig, and poultry. Acknowledged logistics personnel assist in ensuring the products are transported as efficiently as possible and at the lowest cost. Abengoa Bioenergy offers its clients industry summaries, based on the cereal, ethanol, and DGS market fluctuations, with an objective perspective of future trends. The company places great emphasis on maintaining its customers informed on the ethanol market. It constantly publishes market reports, logistic cost estimates, and sales offers, in an attempt to increase transparency and enable customers to operate their plants in the most profitable manner. Abengoa Bioenergy stands apart from other ethanol supplies in the large number of added value services it offers. It provides industrial summaries to its customers, which are based on the cereal, bioethanol, and DGS market fluctuations and on market reports with an objective perspective of future trends. Bioethanol railcars in the Abengoa Bioenergy plant in Nebraska, USA. 2013 Annual report 51 ABENGOA BIOENERGY Our activities ABENGOA Trading Europe Abengoa Bioenergy Trading Europe is a subsidiary of Abengoa Bioenergy that provides added value to the company, optimizing efficiency by concentrating supplies, logistics and commercial effort, creating a unique brand name in the market. Products and services Abengoa Bioenergy Trading Europe provides the following services: Sells the bioethanol produced by Abengoa Bioenergía’s plants in Europe. Manages the sale and enhances the value of bioethanol produced by several European manufacturers, through the concept of “pooling” (addition of volumes), which adds flexibility and safety to the supply, while at the same time optimizes the operations. Manages the procurement of product from third parties in order to increase and diversify the volume and to maintain the market share. Manages risk and price coverage to consolidate margins for the company. Manages negotiations with other sources (USA and Brazil) in order to seek new opportunities and markets. Coordinates and optimizes the logistics of bioethanol from its source to the final customer guaranteeing the faithful compliance with supply contracts. Coordinates the distribution of product sustainability labels in order to fulfill each customer’s contractual requirements and optimize the added value of supplies with a better sustainability. Ensures the implementation, throughout the supply chain, of the sustainability criteria as required by the European Policy under the implementation of Abengoa Bioenergía’s voluntary plan (RBSA). Manages the purchase of raw materials (cereals, biomass, and vegetable oils) necessary for Abengoa Bioenergía’s bioethanol and biodiesel plants. Markets the by-products of Abengoa Bioenergía´s production facilities in Europe (protein compounds for animal feed compounds). Offers the after sale customer service to Abengoa Bioenergía’s customer portfolio. Explores and develops business expansion opportunities in the European Union and other areas. Abengoa Bioenergy Trading Europe offers producers the possibility to access global markets ensuring optimal operation margins and unifying risk management criteria. Thanks to unified sales management it makes the most of all production plans and provides clients with maximum reliability and flexibility in the supply of fuel and animal feed. In 2013 and thanks to the rich business experience gained over the last decade the company has consolidated its international leadership in bioethanol marketing in the European market. From all the bioethanol marketed and distributed by Abengoa Bioenergy 15 % comes from third parties in order to complete our own production and achieve a better response capacity to the demand of EU clients. This supply capacity is strengthened by the coordination existing between the three trading companies of Abengoa Bioenergy in Europe, Brazil and the US, which carry out global arbitration and the opportunities of distributing ethanol streams to the markets with highest added value. 2013 Annual report 52 ABENGOA BIOENERGY Our activities ABENGOA In addition to marketing bioethanol, in 2013 work has continued in the development of an e85 (ethanol 85 %, gasoline 15 %) supply network in Europe, mainly in Spain, where there are already more than 30 filling stations open to the public and several supply points for fleets. Bioethanol market status in Europe The bioethanol market in Europe has not got enough supply to meet the entire demand associated to the achievement of the mandatory targets for progressive introduction of biofuels in the transport sector, which result from the enforcement of the Renewable Energy Directive in each member state and which imposes the obligation of a 10 % of renewable energy content in the transport sector by 2020. The domestic supply deficit is covered with imports arbitrated based on biofuel prices in Europe, including any tariffs that may apply. It is significant to mention that in 2012 most of the product imported in Europe comes from countries enjoying tariff reductions with the EU. Bioethanol prices have remained quite stable over the year thanks to the balance between supply and demand, as a result to a great extent of these low tariff imports. Although there has been some volatility prices have not followed the rise experienced in the commodity market. Compliance with sustainability requirements has been an added value for bioethanol with better greenhouse gas reduction conditions and a greater control of material balance and certification of origin in the supply chain. Abengoa Bioenergy, European leader in the production of sustainable bioethanol certified under the standards established by the Directive has more than fulfilled all of these requirements and it has been able to position its production in the markets with the most stringent standards, such as Germany, United Kingdom and Scandinavia. Ship sailing to Abengoa Bioenergy Netherlands, Europe. 2013 Annual report 53 ABENGOA BIOENERGY Our activities ABENGOA Raw material markets status in 2013 2013 has been marked by the severe draught that affected the United States in 2012, where corn production was 23 % lower than average, with a deficit of 81 Mt of corn, accounting for some 10 % of the entire world production. This sent prices soaring since June 2012 and corn reached in the CBOT levels of 831 US cents per bushel in July 2012, equivalent to 260 € per ton CIF in Europe. Since this harvest season lasted until October 2013 the first part of the year has been impacted by this situation although the market started to drop once the final harvest and its decrease became known. Price levels from January to June 2013 have stayed around 720 US cents per bushel or 240 € per ton CIF in Europe. In the second part of the year, after July 2013 we have seen prices follow a downward trend due to forecasts of a record production of corn and wheat for the new season. Minimum prices were reached in November 2013 with prices of 412 US cents per bushel or 165 € per ton CIF in Europe and a lower price forecast for the first months of 2014 in case the good expectations of the harvest sown in fall 2013 are confirmed. Trading United States In the United States, Abengoa Bioenergy operates six ethanol biorefineries. Our production assets in Nebraska, Kansas and New Mexico have direct access to the western US marketplace via the BNSF and UP railroads and tanker trucks. Our production assets in Illinois and Indiana give us access to the eastern US markets via the CSX, NS, CN, and KCS railroads, tanker trucks and river barges. Abengoa Bioenergy is also a leader in Sustainability and 2nd generation biofuels. All of our production assets meet UN Global Compact guidelines for human rights, labor, the environment, and anti-corruption and we are continually working to lower the carbon footprint of our biorefineries. Abengoa Bioenergy is also developing a commercial scale cellulosic ethanol plant in Kansas that, when completed, will provide ethanol to the US marketplace with significantly lower emissions than gasoline and even 1st generation ethanol. Abengoa already owns and operates a cellulosic ethanol pilot plant in Nebraska and a demonstration plant in Spain. Abengoa Bioenergy Trading US, LLC was formed to manage the critical functions of grain procurement, ethanol and DGS co-product marketing, and hedging and risk management for all commodities, including energy needs. The concentration of these functions into one specialized entity for all U.S. operations is critical to achieve the company’s goals of consistency, efficiency, and identification of one common brand throughout U.S. Abengoa Bioenergy operations. 2013 Annual report 54 ABENGOA BIOENERGY Our activities ABENGOA Products and services Abengoa Bioenergy Trading US provides its customers with services that cover all commercial ethanol aspects, from obtaining raw material, signing agreements with farmers and cooperatives, to the sale of bioethanol and DGS on national and export markets. These are the services provided to customers, among others: Ethanol marketing. Logistics, including rail fleet leases and management. Grain procurement and back-office accounting. Distillers grains marketing and back-office accounting. Natural gas/landfill gas procurement and basis pricing. Denaturant procurement. Corn oil marketing. Hedging and risk management (for corn, ethanol, distillers grains, natural gas and denaturant) including writing and executing strategies that encompass exchange-traded futures and options, OTC swaps and options, cash market procurement and marketing, basis targets for both corn and natural gas. Commodity pricing for Abengoa Bioenergy US facility budgets and forecasting. Assistance in developing marketing and logistics plans for Maple projects. Market situation of bioethanol in United States In 2013, the ethanol market started at record low margins as high corn prices and overcapacity pressured the ethanol sector. A drought in the US during the critical growing period of the 2012/13 corn crop along with an already low stocksto-use ratio played the biggest role as corn demand needed to be rationed. In January, the marginal ethanol producers began shutting their doors and by February margins stabilized and started to recover. By March, some producers who had shut down but still maintained a decent cash position restarted but others could not. Grain costs remained high the rest of the crop year (through September) but reduced US production allowed profitability from operations to be better than expected. With the 2013/14 corn harvest in October, feedstock prices dropped significantly as this year’s crop refilled the supply pipeline and projects to build corn stocks by over a billion bushels. Ethanol prices remained strong as export demand rebounded and domestic demand remained strong. Crush margins during this period were the strongest we have seen since 2011. The demand in USA continues to be strong as summer gets closer, with a real E10 market saturation. Ethanol has become so prevalent that refiners now almost exclusively produce sub octane gasoline products which require 10 % bioethanol blends to meet finished gasoline specifications. While the EPA has approved the use of E15, its adoption along with that of E85 has been limited. 2014 is the year that high Renewable Identification Numbers (RINs) were supposed to force higher ethanol blends into the US fuel market as stocks of these compliance numbers start to dwindle. However, the EPA’s (U.S. Environmental Protection Agency) recent proposal to lower the RFS2 blending requirements for 2014 change that notion and the announcement took the industry by surprise. The EPA is concerned that E15 is not ready for large scale introduction to 2013 Annual report 55 ABENGOA BIOENERGY Our activities ABENGOA consumers yet and that the high cost of compliance will affect gasoline prices. The final ruling on 2014 blending requirements will not come until the middle of 2014. US corn prices make US ethanol the global low cost producer, maximizing exports and minimizing imports. Global demand seems to be increasing as the world is starting to realize the cost savings and environmental benefits of blending ethanol in its gasoline products. The worldwide demand of ethanol from USA is expected to surpass 3,000 ML in 2014. Imports from Brazil are likely to reach ~500 ML in 2014; most of which should go to California to help meet their low carbon fuel standard. The vision of Abengoa Bioenergy US for 2014 is very optimistic despite the recent EPA proposal. As the US economy recovers, so does motor gasoline demand. Ethanol has a firm hold on a 10 % market share in this industry as it is by far the low cost blendstock of octane and oxygen. The good 2013/14 corn crop also allows the US to regain its global low cost producer crown and net exports will keep stocks low and margins high most of the year. A continuous growth in the global demand of protein will keep DGS values high relative to corn costs, adding returns back to US bio-refiners that we have not seen in the past. Trading Brazil In Brazil the bioethanol market relies on sugarcane as feedstock. It is a plant with a high saccharose concentration that is used to produce ethanol (energy ‟ fuel), sugar (energy ‟ food) and bagasse (energy ‟ thermal), and the industry is known as the Brazilian sugar-energy sector. In recent years new technologies are being developed to produce ethanol from sugarcane bagasse, 2G bioethanol, and also from sorghum. After the world oil crisis of 1978 Brazil started a program aimed at replacing gasoline as the basic fuel for its automobile fleet. The “Proalcool” (National Alcohol Program) established a series of incentives for the production of hydrated alcohol (92 % pure) to replace gasoline and this became the main fuel in the internal market, supplying by the late 1980s almost 90 % of the automobiles in the country. At that time the national industry made established fuel supply networks and improved the efficiency of domestic vehicles. Proalcool failed when the productive sector was deregulated leaving it to the plants to choose whether to produce ethanol or to produce sugar, as they were freed from any commitment to supply the domestic market. Many of them if not all focused on sugar exports taking advantage of the fact that in the international market global production and stocks decreased, leading to high prices, and the domestic market suffered severe fuel shortages. Hydrated ethanol fell into discredit and its market share went down to less than 10 % of the fleet by the early 2000s. Since 2003, with the introduction of flexi-fuel vehicles (cars running on gasoline, ethanol or any blend of them, or hydrated ethanol), the risk of fuel shortages in the domestic market has been mitigated. Brazil had already a distribution network for this fuel in place and this has meant a great advantage for ethanol to become again important in the domestic market, leading to a fast increase of its market share. If we add the total consumption of hydrated ethanol to the volume of anhydrous ethanol in gasoline blends, the total volume of ethanol consumed in Brazil exceeds that of pure gasoline. This means that the country has evolved to supply its energy demand with fuel not derived from oil, and additionally, that it uses a clean and renewable product that reduces CO2 emissions and is in line with the international objectives to reduce waste and improve sustainability. The price of Brazilian bioethanol depends from the oscillation of oil prices, the global supply and demand of sugar and the free trade policies among countries (because ethanol must still qualify as an international commodity). Due to the 2013 Annual report 56 ABENGOA BIOENERGY Our activities ABENGOA 2008 crisis international markets are still experiencing turbulences. This generates many risks and opportunities for trading companies to operate at global level. It also means a great advantage for Abengoa considering its know-how in production, logistics and destination in the main continents in the world. The sugar market is changing from the situation of global structural deficit, typical from recent years to a surplus situation, with good production levels in the main exporting countries in 2012 and 2013. Regarding bioelectricity, the production of the two plants is marketed by means of regulated contracts. The São Luiz plant has got a selling license, which allows the company to uses electric power to meet any supply requirements in any of the plants or to trade it in the spot market depending upon the price conditions offered in the market. Sugar cane crops. 2013 Annual report 57 ABENGOA BIOENERGY Our activities ABENGOA New Technologies Abengoa Bioenergía Nuevas Tecnologías was established in early 2003 with the purpose of positioning Abengoa Bioenergy as an innovative leader in the Bioenergy industry and become a world class producer of renewable energy by the development of manufacturing technologies and the implementation of the best and most efficient operation technologies. Abengoa Bioenergía Nuevas Tecnologías promotes the use of new feedstocks as carbon sources and focuses its efforts on enzymatic hydrolysis and catalysis processes. Regarding the technology of enzymatic hydrolysis, the first commercial plant of bioethanol from biomass is currently being finished in Hugoton (Kansas, USA) with a capacity to produce approximately 95 ML per year. This project is financed by the US Department of Energy (DOE) and it is possible thanks to the company’s knowledge of the process and operation previously generated in the pilot plant of York (Nebraska, USA) and the experimental plant of BCyL (Salamanca, Spain). In the field of catalysis, the company has developed two heterogeneous catalysts for the conversion of synthesis gas into ethanol that exceed the previous state-of-the-art. The company has filed applications for two patents of these innovative catalysts and a third patent for an innovative operation process. Finally, a technological package of this technology has been developed for its commercialization. This research area also works on the development of proprietary catalytic technology to produce butanol as from ethanol. Moreover, Abengoa Bioenergía Nuevas Tecnologías is implementing the waste to biofuels project. Its purpose is to develop an integrated solution for urban solid waste (USW) management that allows, first, the maximum use of its fractions by their conversion into biofuel and energy; and second, providing a more sustainable and efficient alternative to final management of waste by its disposal in landfills. Based on its experience in the development of second generation technologies to produce ethanol by means of enzymatic hydrolysis, Abengoa Bioenergía Nuevas Tecnologías assumes in this project all the R&D and engineering activities related to the production of ethanol from the organic fraction of USW. Enzyme test. 2013 Annual report 58 ABENGOA BIOENERGY Our activities ABENGOA In the area of sustainability, it is possible to highlight the conceptual design of innovative solutions together with the development, maintenance and improvement of technological solutions within the RBSA standard. These technological solutions allow demonstrating compliance with the requirements defined in the Renewable Energy Directive 2008/29/EC. In addition, the company continues working on projects for the definition and improvement of systems for sustainability management, strategic development and support in the interaction with stakeholders. It must be highlighted that in recognition of the work performed in the development of the RBSA standard, Abengoa received on March 14th 2012 the Sustainable Biofuels Awards in the Sustainable Bioethanol category. Thanks to the RBSA (RED Bioenergy Sustainability Assurance) standard, which was approved by the European Commission in July 2011, the biofuels produced by Abengoa can be commercialized with the sustainable certification throughout Europe, being a valid emblem in each of the countries of the European Union. Abengoa Bioenergy is working on different projects in the area of raw materials. RBSA logo. This interest is based on the fact that the raw material represents from 60 % to 70 % of the biofuel production cost and between 30 % and 40 % of their life cycle greenhouse gas (GHG) emissions, according to data of the Joint Research Centre. Up to now, the company has been working on the identification of sustainable raw material at a global level and has studied the potential biomass supply around the facilities of Abengoa Bioenergy in Europe. Besides, the company is working on the improvement of proprietary technological solutions that allow tracing the raw material throughout the biofuel production chain, assign GHG emissions and verify other additional sustainability criteria. Likewise, these solutions allow analyzing the most suitable raw materials in terms of sustainability for the production of biofuels. Another concept on which to focus the efforts is Biorefinery, with which products with a market value will be obtained from biomass. The company is working on the development of integrated concepts that combine first- and secondgeneration technologies, on the identification and selection of high value-added products to produce from biomass, and integration of enzyme production facilities in bioethanol production plants. In the field of enzyme research we are working in enzyme optimization to reduce consumption and thus, its economic impact on the process. The research areas in which we are working are isolation and expression of the genes responsible for the main enzymatic activities, isolation and improvement of microorganisms, characterization and optimization of enzyme blends, optimization of operation conditions and productivity increase. Al this shall lead to a reduction in enzyme doses, reduction of production costs and increase of enzymatic hydrolysis process performance. 2013 Annual report 59 ABENGOA BIOENERGY Our activities ABENGOA Current projects Feder Innterconecta Bio-AndaluS The objective of the Bio-AndaluS project is the experimental development of functional biofuels and biomaterials by means of innovative and highly effective technologies, as well as the valorization of collateral streams in the biofuel production process. These products will be obtained thanks to the development of technologies which shall allow a more effective recuperation of the sugars mainly from lignocellulosic biomass and from other carbon sources. This will lead to an improvement of the sustainability of all the processes involved thanks to the feedstocks used. Abengoa Bioenergía Nuevas Tecnologías (ABNT) is coordinating this project, carried out by a multidisciplinary consortium made up by seven Andalusian companies, including large companies, which are the ones providing the main support to the project, and small and medium-sized enterprises with a strong technological and scientific base. The large companies in the consortium ABNT, Azvi and Neol have a pulling effect on the SMEs Pevesa, Canagrosa, DMC Research Center and Biomedal. Likewise, the project is reinforced by the participation of Andalusian research institutions such as the University of Seville, la Asociación de Investigación y Cooperación Industrial de Andalucía (Andalusian Association for Industrial Research and Cooperation - AICIA), Centro Tecnológico Avanzado de Energías Renovables (Advanced Technology Center for Renewable Energies ‟ CTAER), Centro Nacional de Energías Renovables (National Center for Renewable Energies ‟ CENER), the University of Granada, the University of Cadiz and the University of Jaen). Finally, and in order to cover those areas in which there are no specific capabilities in Andalusia the following national-scope institutions are involved: INBIOTEC- research and technology center, King Juan Carlos University and CEMITEC (Centro Multidisciplinar de Tecnologías para la Industria ‟ Multidisciplinary Center for Industry Technologies). The Bio-AndaluS project has been supported by the Centro para el Desarrollo Tecnológico Industrial (Center for Industrial Technological Development ‟ CDTI) and the IDEA Agency (Agencia de Innovación y Desarrollo de Andalucía ‟ Andalusian Innovation and Development Agency). Feder Innterconecta Biopolim-A The Biopolim-A project aims at obtaining advanced biopolymers from agricultural waste, urban solid waste agri-industrial waste and fruit and vegetable waste produce in Andalusia. Therefore, the main objective of the project is to present a technological solution for all those industries producing waste, agricultural, urban and industrial waste with a biological origin, by transforming them into high added value products. Biopolim-A has been established thanks to the collaboration of a consortium made up by seven Andalusian companies: Abengoa Bioenergía Nuevas Tecnologías (ABNT), Abengoa Research, Canagrosa, Kimitec, Neol, Plasgen and WPO group, in which ABNT acts as the Consortium leader. The Biopolim-A project has been supported by the Centro para el Desarrollo Tecnológico Industrial (Center for Industrial Technological Development ‟ CDTI) and the IDEA Agency (Agencia de Innovación y Desarrollo de Andalucía ‟ Andalusian Innovation and Development Agency). 2013 Annual report 60 ABENGOA BIOENERGY Our activities ABENGOA FP7 Biofat The Biofat project (Biofuels From Algae Technologies), under the 7th Framework Programme aims at demonstrating at industrial scale the feasibility of biofuel production from algae. By selecting the most productive strain it focuses on the biological optimization of the culture mediums and improving algae harvesting techniques, keep always energy use technology integration in mind. To this end the biorefinery concept will be used, including valorization of algae biomass fractions for biomass production. The company AlgaFuel has been the leading partner in the project since January 2013, expanding its initial scope by demonstrating two technologies for the production of biofuel and other products from microalgae. Technology demonstration will be carried out in two plants located in Portugal and Italy. The role of Abengoa Bioenergía Nuevas Tecnologías (ABNT) is to conduct the lifecycle analysis of the entire value chain for the production of biofuels from microalgae both at demonstration and at pre-commercial scale. In addition to ABNT there are eight partners in the project, making up an international consortium with representatives from Spain, France, Israel, Italy, Netherlands and Portugal. It includes partners from the academic, industrial and public sectors, such as the University of Florence, the Ben Gurion University, Fotosintetica & Microbiologica, Evodos, Algosource Tecnologies, A&A Fratelli Parodi, IN SRL and Hart Energy. The Biofat project has been funded under the 7th Framework Programme for research and technological development. FP7 Demcamer The Demcamer project (Design and Manufacturing of Catalytic Membrane Reactors by developing new nanoarchitectured catalytic and selective membrane materials) is implemented under the 7 th Framework Programme. It has got a multidisciplinary participation for the development of catalyzers and membrane reactors in the fields of autothermal reforming (ATR), Fischer-Tropsch synthesis (FTS), Water-Gas Shift reaction (WGS) and Oxidative Coupling of Methane reaction (OCM). The main objective of the project is to improve these catalytic chemical processes, known by the application of membrane reactors, to make them more efficient and sustainable. The leading partner in this project is Fundación Tecnalia and it includes highly-reputed international partners, both from the industry and from research institutions. Abengoa Bioenergía Nuevas Tecnologías (ABNT) takes part as industrial partner to assess membrane technologies for the Fischer-Tropsch synthesis, a process with great applications in the field of biofuels. The Demcamer project has been funded under the 7th Framework Programme for research and technological development. 2013 Annual report 61 ABENGOA BIOENERGY Our activities ABENGOA FP7 Led The Lignocellulosic Ethanol Demonstration project (LED), is being implemented under the 7 th Framework Programme and its objective is to design and build a biorefinery for the production of second-generation bioethanol from cereal straw to be ultimately used in public fleets, as well as the improvement of the enzymes involved in cellulose hydrolysis and the use of the lignin contained in the feedstock for high added value products. The leading partner in this project is Abengoa Bioenergía Nuevas Tecnologías (ABNT) and it includes four other partner companies from several countries: Green Value from Switzerland; TNO from the Netherlands; Communauté d'Agglomération of the Pau-Pyrenées (CDAPP) and Communauté de Communes of Lacq (CCL), both from France. FP7 Led continues the technological development required for commercial deployment of industrial second-generation ethanol production. Along this route Abengoa Bioenergy has already achieved important milestones such as the construction of a demonstration plant with a production capacity of 5 MMl/year in Babilafuente (Salamanca, Spain), which was supported by the European Commission under the 5th Framework Programme. The Led project has been funded under the 7th Framework Programme for research and technological development. FP7 Nemesis2+ The ultimate objective the Nemesis2+ project is the small-scale development of a prototype to generate hydrogen for fuel in a system capable of producing 50 Nm3/h H2 from diesel and biodiesel. The project aims at reducing hydrogen production costs, reducing investment, maintenance and operation costs and increasing system effectiveness and reliability. The project includes seven companies from various countries: Deutsches Zentrum für Luft- und Raumfahrt e.V. (Germany), HyGear B.V. (Netherlands), Johnson Matthey PLC. (United Kingdom), Abengoa Hidrógeno (Spain), Centre for Research and Technology Hellas (Greece), Instituto Superior Técnico (Portugal) and Abengoa Bioenergía San Roque, S.A. (Spain). Abengoa Bioenergía San Roque participates as biodiesel supplier and characterizer and collaborates in the lifecycle analysis, the latter task in collaboration with Abengoa Bioenergía Nuevas Tecnologías. The Nemesis2+ project has received financial support from the JTI “Fuel Cells and Hydrogen Joint Undertaking (FCH JU)” under the 7th Framework Programme for research and technological development. 2013 Annual report 62 ABENGOA BIOENERGY Our activities ABENGOA GeSBio The objective of the GeSBio project is to develop and sustainability management system to validate compliance with the environmental requirements applicable to biofuel production. This sustainability management system includes an analysis of all stages in the production chain, defining strategies to reduce environmental impacts in the production of biofuels, in order to be able to provide clients with a product with sustainability guarantees tailored to their and to the market’s needs. GeSBio is divided into three main blocks of activities: Activity 1: Definition of a sustainability management system. Activity 2: Optimization of a management system applied to the biofuel production chain and identification of potential improvements with a positive impact on final product sustainability. Activity 3: Strategy analysis and verification of the sustainability management system. Implementation of the assurance and external review process. Abengoa Bioenergía Nuevas Tecnologías (ABNT) will involve research institutions and other external collaborators in the process, all of them with previous experience in the field, such as the Centro Nacional de Energías Renovables (National Renewable Energy Center ‟ CENER) and Ayesa Advanced Technologies (Ayesa AT). GeSBio is receiving financial support from the IDEA Agency (Agencia de Innovación y Desarrollo de Andalucía ‟ Andalusian Innovation and Development Agency) through its Programa de Incentivos para el Fomento de la Innovación y el Desarrollo Empresarial en Andalucía (Incentive Program for the Promotion of Business Innovation and Development in Andalusia). PID WTE The general objective of the Waste to Ethanol (W2E) research and development project is to develop a technological solution allowing for the valorization of the organic matter contained in urban solid waste (USW) by means of its biological conversion into ethanol. The project is divided into two main activities: Development of the process at bench scale Conceptual engineering of a W2E plant. Abengoa Bioenergía Nuevas Tecnologías (ABNT) will enjoy the collaboration of an external engineering (FB&D), as well as of the following public research institutions: Centro Nacional de Energías Renovables (National Renewable Energy Center ‟ CENER, Spain), Wageningen University (WUR, Netherlands) and the National Renewable Energy Laboratory (NREL, US). In the WTE project, ABNT intends to overcome a technological barrier by means of innovation , adapting to urban solid waste (USW) the technology already developed by ABNT for the production of ethanol from cereal straw. The project has received funding from the Centro para el Desarrollo Tecnológico Industrial (Center for Industrial Technological Development ‟ CDTI) and is cofinanced by the European Regional Development Fund (ERDF) through the R&D&I operative programme targeting companies (Technology Fund). 2013 Annual report 63 ABENGOA BIOENERGY Our activities ABENGOA Lines of development “Waste to biofuels project” The objective of the “waste to biofuels” (W2B) project is to develop a one-stop solution for managing urban solid waste (USW) that allows, on the one hand, more waste fractions to be used by converting into biofuels and energy and, on the other hand, providing a more sustainable and efficient alternative for the final waste management by disposing at landfill sites. W2B technology plant in Babilafuente, Salamanca, Spain. The W2B project framework includes all the research, development and innovation (R&D+i) stages, from laboratory research oriented to the improvement and optimization of biofuel pretreatment and conversion processes to validation of the technology at pre-industrial scale and integral design of the commercial plant. The main milestones achieved within this project are: Completion of the annual classification of the USW coming from the Torija (Guadalajara) transfer center in order to determine its seasonal composition. Completion of the first USW pre-treatment tests and working on the improvement of pre-treatment in order to increase the quality of its fractions. Determination in laboratory that the conversion of the USW organic fraction into ethanol is possible and R&D plan launched for process optimization. Reached more than 50 % of the progress in the works regarding the modification of the Salamanca experimental plant required for further validation of ethanol production as from USW. 2013 Annual report 64 ABENGOA BIOENERGY Our activities ABENGOA Completion of the basic engineering package in terms of the main areas of the commercial production plant of ethanol as from USW. Abengoa Bioenergy promotes the transformation of the existing experimental plant for production of second-generation ethanol as from lignocellulosic biomass into the use of organic fiber from domestic waste as raw material Domestic waste will be received at the experimental plant. This waste will be cleaned and separated, and classified into the different components: ferrous, non-ferrous, aluminum, plastic, textile and organic fiber. The organic fiber will be processed at the biomass experimental plant for the production of second-generation ethanol. This project is known as waste to biofuels (W2B) and the main milestones achieved in 2013 are the following: „ Bench scale performance in the production of ethanol from USW has been achieved at demonstration scale. „ First package of design and basic engineering of the W2B process has been completed Abengoa Bioenergy Biomass of Kansas project Abengoa Bioenergía Nuevas Tecnologías, Inc. Together with Abengoa Biomass of Kansas, LLC, both of them subsidiaries of Abengoa Bioenergy Technology Holding Company, LLC, are in the process of designing and building a new state-ofthe-art project in cogeneration and ethanol production in its flagship facilities located in Hugoton, Kansas. Abengoa Bioenergía Nuevas Tecnologías has signed licensing agreements with selected process technologists and has provided process specifications for the facility. Abengoa Biomass of Kansas is managing general engineering design and 2013 Annual report 65 ABENGOA BIOENERGY Our activities ABENGOA contract coordination with the EPC contractor. Abeinsa EPC, a subsidiary of Abengoa SA, is the engineering, procurements and construction (EPC) contractor. The flagship facility of Abengoa is going to be the first in its class to use cellulosic biomass. The plant’s total planned capacity is 25 Mgal of denaturalized ethanol, based on 365 production days and an approximate production of 21 Mgal in the first year. The project includes the design, procurement and construction of the ethanol-from-biomass plant and of the biomass-based cogeneration system. The cellulosic ethanol production installation will comprise a biomass preparation section and a biomass enzymatic conversion section. The latter will process around 930 t of dry biomass per day and will produce 25 Mgal of ethanol per year. A biomass boiler will generate electricity for the plant drawing steam to meet the steam requirements of the biorefinery. The project will result in a fully integrated biomass plant with ancillary facilities for feedstock procurement, delivery and storage both on and offsite. Since the commissioning of the plant the biomass boiler and steam turbine have been started and have successfully supplied electric power to the plant and the grid in the fourth quarter of 2013. Presently mechanical assembly is about to finish. Production of ethanol from biomass is expected to begin in the second quarter of 2014. Abengoa Bioenergy of Kansas .Hugoton plant, Kansas, USA. 2013 Annual report 66 ABENGOA BIOENERGY Our activities ABENGOA Biobuthanol Abengoa Bioenergy has continued working towards its objective of diversifying its product portfolio in first generation plants, focusing its efforts on the development of catalytic technology for the production of biobuthanol. After synthesizing and patenting a catalyzer with a high selectivity and conversion rate, the technology has been successfully escalated to lab, bench and pilot plant, proving the stability of the catalyzer. Catalyzer production has been escalated maintaining its performance and buthanol production, and there are currently suppliers capable of producing the catalyzer necessary for operation of the first commercial plant. Using the know-how acquired in previous developments a working methodology has been defined to analyze and quantify reaction products, which has led to reliable results over all the different tests that have been conducted. This has concluded with the production of buthanol samples meeting the same specifications achieved in petrochemical processes, which has been certified by internal analyses and sample analysis by the different end users. A pilot plant reproducing the industrial process has been built. It will produce buthanol in sufficient amounts to send samples to end users, which will allow for verification of its use as feedstock in the processes in which it is currently employed. Buthanol separation and purification pilot unit. These developments make catalytic production of buthanol a renewable alternative to buthanol of fossil origin, reducing the CO2 footprint of end users and opening to Abengoa Bioenergy the door to the market of bioproducts, a majority of which are chemicals with a greater added value. Biotechnology Enzymes Abengoa Bioenergía has a license from Dyadic for the use and modification of an organism that produces enzymes necessary for the conversion of cellulose into sugars and which therefore, control a critical and necessary step in enzymatic hydrolysis technology. Abengoa Bioenergy has a highly qualified team of engineers, chemists and biochemists who are working on the development of this technology, tackling both the aspects regarding the adaptation of the organism to the production of the optimum enzymatic cocktail, and the fermentation process necessary for its industrial procurement. The pilot facilities of York and BCyL demonstration plant are critical for the development of enzymes and allow Abengoa Bioenergía to have a test base unique on a global level. Currently, the enzyme cocktail presents a saccharification power similar to that of other commercial solutions in the market. Abengoa Bioenergy continues working on the qualitative improvement of this cocktail and on the validation of 2013 Annual report 67 ABENGOA BIOENERGY Our activities ABENGOA its production at industrial scale in order to guarantee an efficient enzyme supply to start the operation of the Hugoton industrial plant. This solution, included within the technology of enzymatic hydrolysis, has been developed by Abengoa Bioenergy in order to be used both in its facilities and in third-party plants relying on this process to introduce bioethanol. Bioproducts Abengoa Bioenergy has a unique platform for the production of sugar in its current facilities and in the second generation facilities that it is promoting. Currently, Abengoa Bioenergy is developing innovative technologies through microorganisms in order to be able to produce several compounds as from sugars. Likewise, Abengoa Bioenergy, aware of the industrial value that these solutions present, is developing several mechanisms for the intellectual and industrial protection of these technologies, generating a solid consortium of patents to be applied to the different production scenarios of Abengoa Bioenergy. Through this program, it aims to increase the added value of our plants through the new products obtained from those that, in the coming years, are expected to replace a large part of the oil derivatives in a sustainable and economically competitive way compared to the traditional fossil routes. The incorporation of bioproducts in the production of our plants allows us to open a new field of applications with diverse final uses, both in the chemical sector (large tonnage commodities, fine chemical products, biomaterials with new properties for plastic applications, construction, etc.) and in the energy sector (advanced biofuels, specially for their use in the aviation industry) where innovation plays a vital role to achieve leadership in the use of the technologies chosen. Our R&D capabilities, both in the process and in the biochemistry areas, have demonstrated their capacity to develop new technologies and represent a solid base for the success of this program. 2013 Annual report 68 ABENGOA BIOENERGY Our activities ABENGOA Guaranty of activities The call to serve, a sign of identity in the development of all activities, has led the company to implement the Integrated Management System (S.G.I.) throughout the business group companies. This overall quality, environmental and health and safety approach covers and guarantees concerns and demands of all interest groups: investors, partners, clients, employees, suppliers and the community. Quality Quality at Abengoa Bioenergy is a basic management pillar for sustainability. Therefore, a process-by-process approach has been implemented, including the entire value chain, from raw material supply, through processing and the client, to end consumer. These aspects have been developed in order to have the capacity to achieve quality standards in end products, higher than those demanded by clients and current legislation. This is possible thanks to the continuous improvement of processes, resulting from the implementation, among others, of the Six Sigma methodology. As operation standardization and management guarantee, business group companies are certified under the ISO9001:2000 international standard; in addition, the company has began the implementation of the EFQM Excellence Model throughout the business group companies to continue improving. Risk management systems The risk management structure of Abengoa Bioenergía, as a subsidiary of Abengoa, is based on three fundamental pillars: Common management systems, wich are used to mitigate business risks. Internal control procedures on the elaboration of financial information designed in accordance with the SOX (Sarbanes-Oxley Act), to mitigate the risks associated with the reliability of financial information. Abengoa’s Risk Universal model, which is a methodology that quantifies the company’s risk exposure through a dynamic system of impact and probability indicators. This tool helps managing, identifying, mitigating and monitoring business-related risks. These elements constitute an integrated system which enables an appropriate risk and control management at all levels of the organization. It is a live system which undergoes continuous modifications to be kept in line with the reality of the business. Once again, the company has put the internal control system through an independent evaluation system in accordance with the PCAOB audit regulations. Abengoa Bioenergía has voluntarily implemented and audited SOX in accordance with PCAOB audit regulations, which apply to companies trading in the USA stock exchange market and, additionally, has a risk management system whose design and implementation is in accordance with ISO 31.000 and has been validated by an external auditor. 2013 Annual report 69 ABENGOA BIOENERGY Our activities ABENGOA Occupational health and safety Occupational health and safety are priorities when it comes to carrying out our activities. We are aware of the fact that in order to achieve a sound health and safety culture, we need a committed leadership; and therefore, the company considers that in addition to the legal obligations existing in the countries in which we operate it is necessary to establish and develop a culture and awareness in this field. Managing a health and safety culture requires a multidimensional approach in which it is not enough to implement isolated actions in order to achieve quality results, it is necessary to integrate the views of all the stakeholders in the organization. The different companies of Abengoa Bioenergy have implemented and integrated quality, environment, and occupational risk prevention management system (ISO 9001, ISO 14001 and OHSAS 18001) in addition to occupational social responsibility (SA8000). With the implementation of this system and together with the training of all partners we intend to reinforce awareness and true commitment of managers to safety of individuals and facilities. The objective is that all accidents can be prevented and at the same time we are implementing continuous improvement actions in the field of prevention. Our commitment is therefore to achieve excellence. Sustainability The rational use of natural resources and conservation of the environment are the tools currently available in order to build a more sustainable world. For Abengoa Bioenergy, such sustainability is based on two principles, first, the development of technologies serving to provide clean sources of energy, and second an impact on social commitment and environmental education. Abengoa Bioenergy carries out industrial production activities in the energy sector. It develops biofuels for transportation, as well as bioethanol and biodiesel among others, plus chemical bioproducts which use biomass (cereals, sugar cane, cellulose biomass, oleaginous seeds, etc.) as raw material. Biofuels are used in the production of gasoline additives (ETBE) as well as in direct mixtures with gasoline or diesel oil. Abengoa Bioenergy is also developing new biofuels (kerosene for aviation and biodiesel from sugar). The chemical bioproducts will be identical to those produced at present by the petrochemical industry in terms of functionality but, in turn, they will be more sustainable and will focus on immediate replacement within the already existing markets. As sources of renewable energy, biofuels and chemical bioproducts reduce CO2 emissions and enhance the safety and diversification of the energy supply, thus decreasing the dependence on fossil fuels used in the automotive, aviation and petrochemical industries and improving compliance with the Kyoto Protocol. On the other hand, Abengoa Bioenergy devotes a part of its efforts and resources to support activities that have an impact on the improvement of quality of life and training of individuals. 2013 Annual report 70 ABENGOA BIOENERGY Our activities ABENGOA Sustainable development policy In Abengoa Bioenergy we hold as our primary objective to become a reference as a world leader in the production of biofuels, and the development of innovative technological solutions that contribute to the sustainability of the transportation sector and in the production of bio-based chemicals. The only possible way to attain such a goal is to carry out all our activities strictly following the basic foundations of sustainability: Respect towards the environment Social development Economical benefit To comply with the above principles, within Abengoa Bioenergy we define these sustainability indexes in our mission, vision and values, which cover and rule all our activities: Creation of value Raw materials certification Reduction of GHG emissions Personal and Professional development of all employees Efficient use of natural resources. From an environmental point of view, Abengoa Bioenergy contributes to society mainly through biofuels. They are a renewable source of fuels, which, bearing in mind their life cycle, imply saving greenhouse effect gas emissions and favor, therefore, global warming reduction. In addition, the company conducts a strict environmental control on the development of its activities, not only based on emissions control, but on all possible impacts of environmental externalities. Therefore, facilities are designed from the beginning of the projects addressing the effect of the location on biodiversity, conducting the corresponding environmental impact assessments and optimizing the use of natural resources and energy. During its life, productive centers are furnished with facilities that enable strict control, cleaning and dumping reduction, the latter being the focus of most of the efforts on achieving maximum reutilization of natural resources. To ensure the environmental management system, companies are certified under the ISO 4001:2004 standard, maintaining an open and transparent communication with local authorities. Social corporate responsibility As a leader in the development of sustainable solutions for transportation and according to the mission, vision and values of the company, Abengoa Bioenergía is developing a huge effort to find and develop more sustainable solutions for the transportation sector. Since its birth, the company has focused its strategy on the development of technologies that contribute to Sustainable Development, among which are: Production of biofuels from lignocellulosic biomass. Development of alternative technologies for the generation of renewable electricity. Development of systems for producing lignocellulosic biomass under sustainable schemes, avoiding deforestation and the use of high biodiversity areas. Demonstration projects of hybrid production systems to bring the technology to commercial scale. 2013 Annual report 71 ABENGOA BIOENERGY Our activities ABENGOA Improvement of the life cycle of the facilities and production processes, increasing CO2 emissions savings in the transport sector. Development of their own certification Standard (RBSA) to demonstrate the sustainability of the biofuels produced - this Standard was approved by the European Commission in July 2011. The main objective is to be a reference as a world leader in the production of biofuels, developing innovative solutions and advancing in the technology of biorefinery, basing all activities on respect for the environment, social development and economic sustainability. Introduction and adaptation of GHG emission control systems Abengoa Bioenergía champions that the use of biofuels in transportation can lead to meaning a reduction of up to 85 % of GHG emissions in comparison to fossil fuels. Therefore biofuels are clearly beneficial for the environment due to their lower GHG emission grade. With the aim of fully evaluating the decrease in emissions, improving the sustainability of the products and counting all the GHG emissions related to the global activities of the company, in accordance with the strategy of Abengoa, it has undertaken an ambitious emission control plan related to each aspect of the products and raw materials used and manufactured in all plants and offices worldwide. To this end, we have teams of people and managers especially for coordinating and performing the adaptation of the accounting and financial systems to this new requirement; and a great conciliatory job is being carried out so that all suppliers, without exception, incorporate into their deliveries a GHG emissions report associated to their products. This report reflects both the consumption of energy from different sources used for the manufacture of the product and the raw materials used, the distance covered and the mode of transport used from production to delivery. Wagons control. 2013 Annual report 72 ABENGOA BIOENERGY ABENGOA Our stakeholders Our stakeholders 2013 Annual report 73 ABENGOA BIOENERGY ABENGOA Our stakeholders Our shareholders Abengoa Bioenergía, S.A. was incorporated on May 20, 2002, its capital stock represented by 1204 registered shares with a face value of 50.00 € each, with 1203 shares being subscribed by Abengoa, S.A. and 1 by Sociedad Inversora en Energía y Medio Ambiente, S.A. (a company fully owned by the former). On September 19, 2002, the General Shareholders Meeting unanimously agreed upon the transformation of the company from a Corporation into a Limited Liability Company. Later, Abengoa, S.A. decided to group all the investments related to biofuels under the company name of Abengoa Bioenergía, to which end: On December 16, 2002, the capital stock was increased by 119,756,050.00 € by means of a non-monetary contribution consisting of shares which Abengoa, S.A. held in different companies. Sociedad Inversora en Energía y Medio Ambiente, S.A. did not subscribe in this rights issue, which was fully taken up by Abengoa, S.A On December 31, 2002, the capital stock was again increased by 29,705,550.00 € through a non-monetary contribution consisting in shares which Sociedad Inversora en Energía y Medio Ambiente, S.A. held in different companies. Abengoa, S.A. did not subscribe in this rights issue, which was thus fully taken up by Sociedad Inversora en Energía y Medio Ambiente, S.A. On January 1, 2004, the General Shareholders Meeting unanimously agreed upon the transformation of the company from a Limited Liability Company into a Corporation, agreement that was registered in the Mercantile Register Office of Seville on October 7, 2004, from when it has kept the name of Abengoa Bioenergía, S.A. The communication with shareholders takes place regularly within the context of Abengoa S.A.'s actions and through the information channels established for this purpose. The corporate website (www.abengoabioenergy.com), published in Spanish, English and Portuguese, is an excellent tool to communicate with all stakeholders, including shareholders. With its constant updating, it gathers all the relevant information in order to keep shareholders and other stakeholders fully informed at all times. Our employees Professional development Employees are one of the main assets of the business group. For this reason great efforts are being made to ensure both their professional and their personal development. The competency-based management model, the HR management model in Abengoa Bioenergy, meets the need to generate value and clearly competitive advantages through individuals, a competitive advantage which is difficult to imitate, and therefore, our employees are a key asset to keep a market leadership trend. This is why the focus lies on talent attraction, creation and retention, and the recruitment process, either internal or external, is based on this model. This is why Abengoa Bioenergy considers Training as a systematic and continuous process aimed at developing, enriching, promoting or modifying the conceptual, attitudinal and procedural competencies of its employees by means of training actions. From a competency management perspective training focuses on improving general and technical competencies of individuals at work by enriching their knowledge, developing attitudes and skills and improving their capabilities. An excellent organizational performance requires ongoing training and updating. Therefore, Abengoa Bioenergy is devoting its best efforts to allocate resources to employee capacity-building in all necessary areas, and ambitious training programs are being implemented in line with the current competency plan. The program implemented 2013 Annual report 74 ABENGOA BIOENERGY ABENGOA Our stakeholders in 2013 covers all the subjects required to form a team of highly qualified professionals committed to corporate culture. Some of the most important programs are as the following: Corporate training: its purpose is to convey corporate culture: its values, principles and management model. It addresses key aspects such as corporate strategy, its risk model, its business areas and its leadership vision. General training: it aims at the professional development of employees in any of the matters connected to their job. Occupational risk prevention training: it reinforces at different levels the importance of promoting and respecting safe conditions at work and the use of protection elements. Environmental management training: it helps to understand the company’s commitment to sustainability. Environmental performance training: it focuses on the systems used by the company to manage environmental performance: Integrated Sustainability Management System (SIGS) and ISO 14064. Online training on GHG Inventory. Language training: languages are considered a key element in a global environment with constant international growth. On-the-job training: It is implemented by means of internship programs. This year the objectives established have been completed and even exceeded, resulting in comprehensive and balanced training activities in line with the company’s strategic objectives. In 2013, at Abengoa Bioenergy, the company staff was formed by 6,341 employees, distributed in three geographical areas where it operates, USA, Europe and Brazil. Employees 2013 2013 Annual report Region Nº of employees Europe 620 United States 368 Brazil 5,353 Total 6,341 75 ABENGOA BIOENERGY ABENGOA Our stakeholders Code of conduct As an Abengoa subsidiary, at Abengoa Bioenergy abides by the same code of conduct as its parent company (see http://www.abengoabioenergy.com). This code’s principles are based on: Requires the highest standards for honest and ethical conduct, including proper and ethical procedures for dealing with actual or apparent conflicts of interest between personal and professional relationships; Requires full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed or submitted by Abengoa with governmental agencies or in other public communications made by Abengoa; Requires compliance with applicable laws, rules and regulations; Addresses potential or apparent conflicts of interest and provides guidance for employees, officers and directors to communicate those conflicts to Abengoa; Addresses misuse or misapplication of Abengoa’s property and business opportunities; Requires the highest level of confidentiality and fair dealing within Abengoa and outside Abengoa; and Requires prompt internal reporting of violations of this Code of Conduct and proper reporting of any illegal behavior. Occupational health and safety Prevention training and culture The company considers that creating an occupational risk prevention culture and raising awareness on it are basic elements; therefore, training plans include a specific section on occupational safety, which includes both generic and specialized courses. All partners are included in the training plans specifically designed for the job they perform at the company. Training courses are classified into two main groups: the first one focuses on providing knowledge with direct application in occupational risk prevention, both in terms of regulations and in practical implementation; the second one includes basic notions on how to act in case of accident and/or emergency. Safety and health communications In the corporate context communication is the matrix in which all organizational practices fit together. Strategic management of safety and health communications requited a coherent integration of the different contents, programs and tools existing in the company. Efficient dissemination of information on occupational risk prevention leads to a consistent perception of safety standards and prevents the circulation of contradictory messages within the organization. 2013 Annual report 76 ABENGOA BIOENERGY ABENGOA Our stakeholders Rescue in heights course in the plant of Biocarburantes de Castilla y León (Spain). Risk assessment In order to prevent of minimize risk situations in our activities we consider that it is necessary to have the best possible knowledge on the nature and severity of the risks that may arise at work, as well as on the prevention measures that must be adopted to control them. Prevention plans Prevention plans are designed in order to prevent the occurrence of accidents. They include a series of procedures and instructions that describe how to perform activities or tasks in a safe manner in all areas. These documents are the pillars of preventive action and feed on the approved corporate policy on occupation health and safety. Therefore, their dissemination and correct implementation become key elements in their effectiveness. 2013 Annual report 77 ABENGOA BIOENERGY ABENGOA Our stakeholders Our customers The management systems established, in accordance with international standards and internal requirements as described in the specifications defining how to assess the maturity of these systems, lay down the need for the introduction of structures to measure customer satisfaction, capable of analyzing customer needs and expectations. In order to assess customer satisfaction, satisfaction surveys are regularly conducted, these being handled by the plant quality departments. These surveys are not annual, given the nature of the actual business, but rather are performed at set intervals depending on the company's strategy and objectives. In 2013 we have received the results of the surveys conducted in late 2012 and early 2013, and they show that the high satisfaction levels achieved in previous years have been maintained. The purpose of these surveys is to keep moving forward in our quality and service system. Surveys were conducted to more than 30 clients in Abengoa Bioenergy’s portfolio in Europe. Some of the most important clients that were included in our satisfaction survey were: BP, Cepsa, Ecofuel, Lyondell, Repsol, Total, Siplec, Acciona, Cargill, Galp, Meroil, Petronor and Esergui. This analysis concludes by establishing specific action plans and objectives in order to meet expectations and to improve customer satisfaction. The company's senior management also takes this into consideration when establishing and defining the strategy at each company. Comunication with our customers A service vocation is one of the aspects which Abengoa Bioenergy considers to be of vital importance. It therefore establishes direct channels of communication between the technical and commercial departments and customers with the aim of establishing a close relationship, thereby allowing it to receive any relevant comments and suggestions. One of the aspects most highly valued by customers is product quality, as a result of the strict controls applied to raw materials prior to their arrival at the plant, with regard to strict compliance with the applicable quality parameters, in line with the regulations in force, throughout the supervision of processes, stored products and, ultimately, the batches released. All this goes hand-in-hand with strict compliance with contracts, ensuring that Abengoa Bioenergy is a byword for reliability in all regards. Customers list: Europe Bioethanol Europe BP, Shell, Total, Repsol, Cepsa, Lyondell, Ecofuel, Greenenergy, ConocoPhillips andExxon Mobile Biodiesel Cepsa. DGS Europe Nutreco, Nuter Feed, Arkady Feed, Glon Sanders, Cefusa, Sud Ouest Aliment, Nanta, Piensos Unzúe, Cefetra, Avigase, Delagro, R&H Hall, De Heus and Evialis France. 2013 Annual report 78 ABENGOA BIOENERGY ABENGOA Our stakeholders Glycerin Europe Nutreco, Cegeco, SAT Alia, EDF&Man, Piensos Juan Jiménez, Covap, Loiret & Haentzens España, Gavilón, IPSpecialities y a Ukrechemresource Cogeneration Europe Energía descargada directamente a la red. United States Bioethanol United States Alcotra, BioUrja, BP, Chevron, ExxonMobil, Flint Hills Resources, Marathon, Murex, QuikTrip, Shell, Thorntons and Valero. DGS United States Cargill, Gavilon, Scoular, Adams Land and Cattle, ADM, The Rice Co., CGB, Tyson and Pilgrim's Pride. Brazil Bioethanol Brazil Ipiranga, Simera, Gigante, G Petro, Copersucar, Monte Cabral, Petronac y Raízen. Sugar Brazil Agrograin Ltda - ADM Group, Armajaro Trading Limited, Bunge, Cargill, Copersucar, Czarnikow Sugar, Glencore UK, Noble Americas Corp, Louis Dreyfus Sugar Company y Sucden - Sucres Et Denrees. Cogeneration Brazil Eletrobrás, CCE E, CEMAR-MA, COSERN, ESCELSA, RGE, Ligth, Elektro, Celpe, CEAL, Celg, Bandeirante Energia S.A., CPFL Santa Cruz, , CPFL Piratininga, Companhia de Energia Elétrica ‟ Palmas, Eletropaulo and Cemig. Our suppliers The base of the Purchasing strategy is focused on the direct integration of the suppliers in the operations through the application of their experience and technology. The implementation of the best solutions proposed by the suppliers enables us to minimize risks, optimize costs and deadlines. All of the contracts and investment agreements with our suppliers and distributors include clauses that have been analyzed in the area of human rights. Guidelines Six basic guidelines define the relationship with suppliers and reinforce the Procurement strategy: Outsourcing Leadership Globalization 2013 Annual report 79 ABENGOA BIOENERGY ABENGOA Our stakeholders Local development Integration Quality Oursourcing The outsourcing of the services identified as supplementary to production guarantees the maximum optimization of operations. Outsourcing allows the company to concentrate on improving the knowledge in key activities, increasing the performance of the business, incorporating the most professional service through the direct involvement of the supplier in day-to-day operations. Services such as labor specialized in the different areas of maintenance and utilities, as well as the supplies and application of critical products, are among the sectors subjected to outsourcing due to the specific experience, technology and training required. Leadership The continuous quest and contract negotiation of the leading suppliers in their sector guarantees innovative improvement solutions with an important technological component, which maintainscompetitiveness and quality. The supply of critical products and the maintenance of essential units draw on suppliers of well-known success and proven experience. Globalization All purchases are subject to globalization. The contracting of shared suppliers in the different production centers allows incorporating the most developed and homogeneous service with standardized scopes that offer a corporate procedure and a balanced growth across the various production plants. These synergies facilitate the application of global solutions, which result in a cost optimization both in management and in the development of the service and supplies. Local development In turn, the fact of focusing on the development and involvement of local suppliers guarantees the coverage of the most elementary and basic needs, with the consequent flexibility in the consumption volumes and response times thus having a positive impact on commercial and industrial growth in the geographical areas of operation, guaranteeing a close and social relationship. Integration The integration of suppliers' improvement proposals allows the continuous enhancement of productivity and performance. Result-based pricing is a fundamental principle of business commitment. This commitment will also include the integration in the Environmental Safety Policy, the respect for Human Rights and the business ethics. 2013 Annual report 80 ABENGOA BIOENERGY ABENGOA Our stakeholders Quality The quality of our providers is a key factor in ensuring that the services and supplies received by our production plants are in accordance with the expected levels. From Purchases, in collaboration with Quality and HR, a series of systematic visits/audits to providers take place each year to review aspects of the Social Corporate Responsibility and Sustainability, Quality, Purchases, traceability and product control, as well as logistics of the latter to ensure appropriate management and supply to the customer. Social responsibility and sustainability Since June 2008, Abengoa Bioenergy, as part of the sustainability policy of Abengoa and all its business groups, requires its suppliers, including raw material suppliers, to sign a Code of Social Responsibility (CSR) based on international standard SA 8000, made up of 11 clauses. Through adhesion to this CSR, Abengoa Bioenergy promotes among its suppliers the observance and compliance with the established social and environmental regulations and compliance with all aspects of social responsibility set forth in the Global Compact, covering the company's entire productive processes, and thereby imposing an obligation on suppliers to sign up to said code in writing. Abengoa has implemented an inventory of GHG (greenhouse gas) emissions, therefore we request our clients to submit the emissions derived from the products / services acquired / contracted. Day by day we continue focusing on the continuous improvement in the sustainability field, thus, we still require from our suppliers their commitment in this sense. Community Abengoa Bioenergy benefits the communities where it operates both economically and socially. However, such benefits would both be useless if they do not respect the environment. In its desire to protect the environment, Abengoa Bioenergy works to minimize the environmental impact of its industrial activities chiefly in three areas: „ „ „ Natural resources. Controlling and reducing generated emissions and waste. Protecting the biodiversity of the areas where it operates. Natural resources Abengoa Bioenergy protects natural resources where it operates through the production and trade of renewable products, the control and reduction of the generated emisions and residues, and the protection of biodiversity. 2013 Annual report 81 ABENGOA BIOENERGY ABENGOA Our stakeholders Conferences World Biofuels 2013 For the twelfth year in a row the Global Biofuel Conference “World Biofuels 2013” was held at the Hospital de los Venerables, headquarters of the Fundación Focus-Abengoa in Seville. This conference has become a reference forum for experts in the bioethanol and biodiesel industry coming from the main markets in the world. During the conference participants discussed the strategic European directives on biofuels, examined plans to increase the role of biofuels in transport, discussed the problems of waste management and its use in the production of biofuels and reviewed ethanol trade perspectives. Javier Garoz Neira, CEO of Abengoa Bioenergy. This activity is part of the Focus-Abengoa Forum of Energy and Climate Change, which promotes initiatives in the field of energy to research and the analysis of topics related to renewable energy and business initiatives. The mission of the Forum is to contribute to the debate on the change of the energy model from a multidisciplinary perspective. The global biofuel conference World Biofuels 2013 intends to promote by means of a public discussion a truly open forum for research, presentation and exchange of ideas and outcomes implementing all actions deemed appropriate based on the nature of the issues to be analyzed. 2013 Annual report 82 ABENGOA BIOENERGY ABENGOA Our stakeholders 3rd International Conference on Lignocellulosic Ethanol Abengoa Bioenergy, through its subsidiary Abengoa Bioenergía Nuevas Tecnologías (ABNT), took part at the 3 rd International Conference on Lignocellulosic Ethanol organized by the Directorate- General for Energy of the European Commission in Madrid in April 2013. This meeting was included in the EC initiative to promote technological development in the production of advanced biofuels and its main objective is to encourage implementation of these technologies at commercial scale. As a result of the different topics discussed at the conference the sponsors drafted a declaration charter which was approved by a majority of the conference attendants. This declaration summarized the most important aspects that must be promoted by the European advanced biofuel industry in order for the commercial implementation of this technology to become a reality in the near future. 3rd International Conference on Lignocellulosic Ethanol held in Madrid Casino. 2013 Annual report 83 ABENGOA BIOENERGY ABENGOA Our stakeholders Interaction with the community Abengoa Bioenergy promotes and carries out general interest activities and actions centered on educational, cultural and scientific work. Abengoa Bioenergy believes in an innovative company as a necessary and effective tool to make headway toward a society committed to sustainable development. On the other hand, the company participates in actions promoted by Abengoa mainly through its Focus foundation. All these actions are aimed at contributing to improve not only the economic, but also the social and environmental surroundings and, therefore, the interest and wellbeing not only of the people working in the company but people in general, organizations and communities around it. Europe Abengoa Bioenergy companies abide by the values of corporate social responsibility in their daily operations naturally integrated into the company's strategy, culture and organization. For that purpose, they foster and contribute to the development of the following activities: Sponsorship of the Mandeo river. Support to the "Asociacion Vivre ensemble" for handicapped individuals. Venerable Cofradía del Santísimo Cristo de la Humildad y Paciencia (brotherhood). Collaboration in Fiestas Patronales Teixeiro. Collaboration with Association "Lacq plus". Contribution to the sponsorship of the journal published by the local police force of Cartagena. Collaboration in the patron’s celebrations in Huerta. United States Support to school organization and sports activities in Madison and Mount Vernon. Support to the food Banks in the Madison and Mount Vernon areas. Collaboration with community organizations and youth groups to motivate and promote community activities (Madison and Mount Vernon). Collaboration and support to promote community participation in the following local communities: Buffalo County Economic Development, Central NE and Love in Action Community Food Pantries, Dads, Lads, and Lassies Scholarship Hunt, FFA, 4-H Boosters, Bluejay Headquarters, Local school academic and athletic organizations, Senior Center, Chamber of Commerce, PIK Parents, Boys/Cub Scouts, EMT, Police, Public Library, Fire Department, and Tractor Puller Association. Brazil Abengoa Bioenergy Brazil has planned a number of corporate social responsibility-based activities to integrate the company to the local communities. These actions are aimed at contributing to improve the economic, social and environmental surroundings, as well as the interest and wellbeing of both company employees and the rest of the community. The most significant projects in which the company has been involved in this last year are the following: 2013 Annual report 84 ABENGOA BIOENERGY ABENGOA Our stakeholders Living schools project: promoting culture and education and encouraging sports activities for the development of children and teenagers. “Adopt a letter” project: letters written to Santa Claus by children in need. Positive income: support to employee income and community economy through vocational training courses. Play project, children’s day: collecting and handing out toys to children in need. Support to and sponsorship of organizations. Winter clothing campaign. Internal information bulletin: Reporting corporate policies, standards and events to employees by means of an internal bulletin. Safety campaign (Zero Accident): awards for best practices. Christmas card design contest “Adopt a water spring” project. Digital inclusion (computing). Internal talent project. School integration. Training participants in the school integration project. 2013 Annual report 85 ABENGOA BIOENERGY ABENGOA Our stakeholders Human rights As Abengoa’s subsidiary, Abengoa Bioenergy (signatory of the World Pact since September 2002) works to ensure that the 10 basic principles developed in the abovementioned Pact are observed. These 10 principles stem from universal declarations and conventions: two on human rights based on the Universal Declaration on Human Rights; four on labor inspired on the ILO Declaration on Fundamental Principles and Rights at work, three on the environment supported by the Rio Declaration on the Environment and Development, and one on the fight against corruption, based on the United Nations Convention against Corruption. The respect of the fundamental rights of people and their environment being the main pillar of all its activities, Abengoa Bioenergy and all its subsidiaries: Support and respect internationally recognized fundamental human rights protection, within its scope of action. Ensure companies are not accomplices to the violation of human rights. Support freedom of association and effective acknowledgment of the right to collective bargaining. Support the elimination of all forms of forced labor or compulsory labor. Support the eradication of child labor. Support the abolition of discrimination practices at work. Maintain a preventive approach that favors the environment. Foster initiatives that promote further environmental responsibility. Favor the development and promotion of environmentally-friendly technologies. Work against all forms of corruption, including extortion and bribery. 2013 Annual report 86 ABENGOA BIOENERGY ABENGOA Our stakeholders Corporate governance 2013 Annual report 87 ABENGOA BIOENERGY Corporate governance ABENGOA Board of directors Abengoa Bioenergy’s board of directors was established in July 2007. At the end of 2013 it was made up by a president, seven board members and a non-member secretary, providing us with a diversified and plural representation. Javier Benjumea LLorente President Javier Garoz Neira CEO Juan Verde Suárez Director Appointments and remunerations committee New technologies committee Javier Rupérez Rubio Director Appointments and remunerations committee Audit committee New technologies committee Marcos Ramírez Silva Director Audit committee New technologies committee Luis Solana Madariaga Director Appointments and remunerations committee Audit committee New technologies committee Santiago Seage Medela Director Manuel Sánchez Ortega Director Salvador Martos Barrionuevo Secretary-non member 2013 Annual report 88 ABENGOA BIOENERGY Corporate governance ABENGOA Board committees The board committees shall meet as often as necessary to cover these duties, at least twice a year, and on all occasions when convened by the Chairman, at its own initiative or at the request of any of its members. Meetings of the Committees will also be valid when, all members being present, they agree to hold a session. The board committees shall be considered validly constituted when the majority of the members are present. Attendance can be delegated to another Board member. The resolutions shall be validly adopted when the majority of the members present in the committee vote in its favor. The board committees are formed by three non-executive board members designated by the board of directors, for a maximum period of four years, renewable for maximum periods of the same duration. The secretary of the board of directors acts as committee secretary. Board committees Appointments and remuneration committee Audit commitee New technologies committee Appointments and remuneration committee The functions and competences of the appointments and remunerations committee are the following: Report to the board of directors about new appointments, reelection, end of activity of any of the board members and their position, as well as the general policy of remunerations and incentives for the members and the senior management. Provide a preliminary report on all proposals to be presented by the board of directors to the shareholders for the appointment or end of activity or resignation of board members, even in the event of co-opting by the board of directors itself. Draw-up an annual report on the activities of the appointments and remunerations committee. Assess the competences, knowledge and experience of the board members, define the abilities and skills that candidates need to have in order to fill the vacant positions, as well as evaluate the time and dedication needed for an appropriate performance of their tasks. Report the new appointments and end of activity of the senior managers proposed by the chairman to the board of directors. Report the board of directors on miscellaneous matters. Report the board of directors of the remuneration policy of directors and senior managers. Inform the board of directors about the individual remuneration of the board members and the approval of contracts that the company enters into with each counselor. Ensure the compliance with the remuneration policy established by the company. Seek for the chairman or CEO advice, especially in matters related to the executive directors and senior managers. 2013 Annual report 89 ABENGOA BIOENERGY Corporate governance ABENGOA Analyze the requests that any board member may formulate for the consideration of potential candidates to fill the vacant positions in the Board, as well as the vacant positions in the Company. Appointments and remuneration committee D. Juan Verde Suárez (president) D. Javier Rupérez Rubio D. Luis Solana Madariaga Audit committee The functions and competences of the audit committee are the following: Provide a report of the annual accounts as well as quarter and half-year financial statements, to be submitted to the parent company, shareholders, financial institutions, public and private organizations, etc., mentioning the internal control systems, supervision of compliance through internal audits, and, if applicable, the accounting criteria applied. Report to the board on any change in the accounting criteria and on-balance sheet risks and off-balance sheet risks. Inform at the general shareholders meeting about the matters raised by the shareholders with respect to their competence. Propose the appointment of external auditors to the board of directors so as to be presented at the general shareholders meeting. Supervise the internal audits. The committee will have full involvement in the internal audit. It will also report during the process of selection, appointment, removal and reappointment of the director and approval of his/her remuneration, and will have to inform the budget of the department. Be aware of the process of financial reporting and the internal control systems of the company. Meet with the external auditors in order to receive information about those matters that may imply a risk to their independent judgment and any other matter related to the auditing process. Summon the counselors deemed appropriate to the meetings of the Committee, so that they inform on the agreements being taken by the audit committee itself. Elaborate an annual report on the activities of the audit committee, which should be included in themanagementreport. Audit committee D. Javier Rupérez Rubio (president) D. Marcos Ramírez Silva D. Luis Solana Madariaga 2013 Annual report 90 ABENGOA BIOENERGY Corporate governance ABENGOA New technologies committee The functions and competences of the new technologies committee are the following: Report to the board of directors about the status of the new technological developments regarding biofuels. Report in advance, all the proposals that the board of directors may submit to the general meeting for the adoption of agreements corresponding to the new technologies applicable. Inform and give advice on the investment policy in new technologies. Prepare an annual report on the activities of the new technologies committee and related progress. New technologies committee D. Luis Solana Madariaga (president) D. Marcos Ramírez Silva D. Javier Rupérez Rubio D. Javier Verde Suárez 2013 Annual report 91 ABENGOA BIOENERGY Corporate governance ABENGOA Management structure 2013 Annual report 92 ABENGOA BIOENERGY ABENGOA Management structure During 2013 the management structure of Abengoa Bioenergy was constituted as follows: Sociedad Dirección Teléfono Fax Abengoa Bionergía, S.A. Corporate „ President „ Chief Executive Officer „ Chief Financial Officer „ Executive Vice President, Business development „ Executive Vice President, Product Sales & Strategic Markets „ EVP Technology Development „ Executive Vice President, Biotechnology „ Executive Vice President, Industrial Operations „ Executive Vice President, Operational Trading „ Executive Vice President, Engineering „ Executive Vice President, Institutional Affairs „ Human Resources Corporate Director „ Abengoa Bioenergy General Counsel Javier Benjumea Llorente Javier Garoz Neira Ignacio García Alvear Salvador Martos Barrionuevo Joaquín Alarcón de la Lastra Romero Gerson Santos- León Ricardo Arjona Antolín Craig M. Kramer Alberto Carmona Bosch Francisco A. Morillo León Christopher G. Standlee Antonio Montoya López Jeff Jones 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 Pº de la Castellana, nº43 28046 Madrid, Spain +34 95 493 7000 +34 91 752 3350 Campus Palmas Altas Calle Energía Solar nº 1, 41014 Sevilla, Spain +34 95 493 7000 +34 95 541 3373 Ecocarburantes Españoles,S.A. „ President „ Executive Vice President, Industrial Operations „ EU Production Coordination Director „ Plant Manager Javier Garoz Neira Craig M. Kramer Tomás Blanco Parra David Galindo Cascales Crta. N-343, Km 7,5, Valle de Escombreras 30350 Cartagena , Murcia, Spain +34 968 16 7708 +34 968 16 7070 Bioetanol Galicia, S.A. „ President „ Executive Vice President, Industrial Operations „ EU Production Coordination Director „ Plant Manager José B. Terceiro Lomba Craig M. Kramer Tomás Blanco Parra Noé Pestonit Freire Polígono Industrial Teixeiro Ctra. Nacional 634, Km. 664,3 15310 Teixeiro-Curtis, La Coruña, Spain +34 981 77 7570 +34 981 78 5131 Biocarburantes de Castilla y León, S.A. „ President „ Executive Vice President, Industrial Operations „ EU Production Coordination Director „ Plant Manager Ginés de Mula González de Riancho Craig M. Kramer Tomás Blanco Parra Eduardo García Campos Crta. de Encinas a Cantalapiedra, Km. 4,9. 37330 Babilafuente, Salamanca, Spain +34 923 28 4163 +34 923 28 4143 Abengoa Bioenergía San Roque, S.A. „ President „ Executive Vice President, Industrial Operations „ EU Production Coordination Director „ Plant Manager Javier Garoz Neira Craig M. Kramer Tomás Blanco Parra Juan Carlos Muñoz Cortijo Santa Rosa, s/n. Carretera a Petresa 11360 San Roque, Cádiz, Spain +34 91 354 2712 +34 95 669 9122 Abengoa Bioenergy France, S.A. „ President „ Executive Vice President, Industrial Operations „ EU Production Coordination Director „ Plant Manager Javier Garoz Neira Craig M. Kramer Tomás Blanco Parra Pierre Moreau Rocade Sud d'Arance Plateforme Induslacq, Porte d'Abidos. 64300 Arance, France +33 559 14 0990 +33 559 14 0991 Abengoa Bioenergy Netherlands, B.V. „ President „ Executive Vice President, Industrial Operations „ EU Production Coordination Director „ Plant Manager Javier Garoz Neira Craig M. Kramer Tomás Blanco Parra Robine Köning Merwedeweg 10 Haven 5629, 3198 LH Europoort, The Netherlands +31 18 124 2500 +31 18 126 1205 Abengoa Bioenergy Trading Europe, B.V. „ Chief Executive Officer „ Executive Vice President Javier Garoz Neira Alberto Carmona Bosch Merwedeweg 10 Haven 5629, 3198 LH Europoort, The Netherlands +31 18 124 2500 +31 18 126 1205 Ecoagrícola, S.A. „ President „ Executive Vice President Javier Garoz Neira Alberto Carmona Bosch Crta. N-343, Km 7,5, Valle de Escombreras 30350 Cartagena , Murcia, Spain +34 968 16 7708 +34 968 16 7070 Abengoa Bioenergía Nuevas Tecnologías, S.A. „ Chief Executive Officer „ Executive Vice President „ General Director Javier Garoz Neira Gerson Santos- León Ricardo Arjona Antolín Campus Palmas Altas Calle Energía Solar nº 1, 41014 Sevilla, Spain +34 95 493 7000 +34 95 541 3373 Abengoa Bioenergy US Holding „ Chief Executive Officer „ Chief Financial Officer „ Executive Vice President, Business Development „ Executive Vice President, Strategic Development „ Executive Vice President, Industrial Operations „ Executive Vice President, Institutional Affairs Javier Garoz Neira Ignacio García Alvear Salvador Martos Barrionuevo Joaquín Alarcón de la Lastra Romero Craig M. Kramer Christopher G. Standlee 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 2013 Annual report 93 ABENGOA BIOENERGY ABENGOA Management structure Sociedad Abengoa Bioenergy Company „ Chief Executive Officer „ Executive Vice President, Industrial Operations „ US Production Coordination Director „ York Plant Manager Abengoa Bioenergy Nebraska „ Chief Executive Officer „ Executive Vice President, Industrial Operations „ US Production Coordination Director „ Plant Manager Abengoa Bioenergy Indiana „ Chief Executive Officer „ Executive Vice President, Industrial Operations „ US Production Coordination Director „ Plant Manager Abengoa Bioenergy Illinois „ Chief Executive Officer „ Executive Vice President, Industrial Operations „ US Production Coordination Director „ Plant Manager Javier Garoz Neira Craig M. Kramer David Rice Mitch Stuhr Javier Garoz Neira Craig M. Kramer David Rice Mitch Feldman Javier Garoz Neira Craig M. Kramer David Rice Darrell Sanford Javier Garoz Neira Craig M. Kramer David Rice David Henderson Dirección Teléfono Fax 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 P.O. Box 527. 523 East Union Ave Colwich, KS 67030, USA +1 316 796 1234 +1 316 796 1523 1827 Industrial Dr. Portales, NM 88130, USA +1 575 356 3555 +1 575 359 1060 1414 Country Road O York, NE 68467, USA +1 402 362 2285 +1 402 362 7041 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 35955 Navaho Rd. Ravenna, NE 68869, USA +1 308 452 3900 +1 308 452 3253 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 8999 West Franklin Road Mt. Vernon, IN 47620, USA +1 812 985 4032 +1 812 985 9983 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 395 Bissell Street Madison, IL 62060, USA +1 618 451 4420 +1 618 452 8946 Abengoa Bioenergy Hugoton „ Chief Executive Officer „ Executive Vice President, Industrial Operations „ US Production Coordination Director „ Plant Manager Javier Garoz Neira Craig M. Kramer David Rice Danny Allison 1043 Road P Hugoton, KS 67951, USA +1 620 544 6000 +1 620 544 7791 Abengoa Bioenergy Engineering & Construction „ Chief Executive Officer „ Executive Vice President Javier Garoz Neira Salvador Martos Barrionuevo 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 Abengoa Bioenergy Trading US „ Chief Executive Officer „ Executive Vice President „ Vice President Javier Garoz Neira Alberto Carmona Bosch Jeremy J. Mall 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 Abengoa Bioenergy New Technologies „ Chief Executive Officer „ Executive Vice President Javier Garoz Neira Gerson Santos- León 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 Abengoa Bioenergy Developments „ Chief Executive Officer „ Executive Vice President „ Executive Vice President Javier Garoz Neira Salvador Martos Barrionuevo Joaquín Alarcón de la Lastra Romero 16150 Main Circle Drive, Suite 300 Chesterfield, MO 63017-4689 USA +1 636 728 0508 +1 636 728 1148 Abengoa Bioenergia Brasil „ Chief Executive Officer „ General Director „ Commercial Director Javier Garoz Neira Francisco A. Morillo León Alberto Carmona Bosch Fazenda São Luiz. Caixa Postal, 32 13630-970 Pirassununga-SP, Brazil +55 19 3565 5555 +55 19 3565 5502 2013 Annual report 94 ABENGOA BIOENERGY
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