abengoa bioenergy - Abengoa Bioenergía

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ABENGOA BIOENERGY
2009 Annual Report
Activities Report
Table of Contents
Letter from the CEO.............................................................................................................................................................. 2
Sustainability ........................................................................................................................................................................ 5
Mission, Vision, Values......................................................................................................................................................... 6
Sustainable Development Policy ........................................................................................................................................... 6
Our Business ......................................................................................................................................................................... 7
History................................................................................................................................................................................. 8
Global Pressence.................................................................................................................................................................. 9
Production Plants ............................................................................................................................................................... 10
Financial Figures ................................................................................................................................................................ 11
Our Products ....................................................................................................................................................................... 13
Bioethanol ......................................................................................................................................................................... 14
Biodiesel ............................................................................................................................................................................ 14
DGS .................................................................................................................................................................................. 15
Sugar ................................................................................................................................................................................ 15
Electricity and CO2 ............................................................................................................................................................. 15
New Technologies ............................................................................................................................................................. 16
Our Activities ...................................................................................................................................................................... 18
Introduction ...................................................................................................................................................................... 19
Main Achievements ........................................................................................................................................................... 21
Production Europe ............................................................................................................................................................. 23
Production United States ................................................................................................................................................... 29
Production Brazil................................................................................................................................................................ 37
Trading, Logistics, and Raw Materials Origination ............................................................................................................... 39
Trading Europe .................................................................................................................................................................. 39
Ecoagrícola ........................................................................................................................................................................ 40
Trading United States ........................................................................................................................................................ 42
Trading Brazil..................................................................................................................................................................... 43
New Technologies ............................................................................................................................................................. 44
Guaranty of Activities ........................................................................................................................................................ 48
Our Stakehoders ................................................................................................................................................................. 51
Our Shareholders ............................................................................................................................................................... 52
Our Employees .................................................................................................................................................................. 53
Our Clients ........................................................................................................................................................................ 55
Our Providers ..................................................................................................................................................................... 56
Community ....................................................................................................................................................................... 57
Management Structure ...................................................................................................................................................... 60
Board of Directors.............................................................................................................................................................. 61
Board Committees ............................................................................................................................................................. 62
Management Structure ...................................................................................................................................................... 64
ABENGOA BIOENERGY
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2009 Annual Report
Letter from the CEO
Letter from the CEO
Letter from the CEO
ABENGOA BIOENERGY
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2009 Annual Report
Letter from the CEO
coverage and business risks by placing priority on managing
cash flows. Abengoa Bioenergía has come out strengthened
after 2009, consolidating our central role as a world leader
company.
2009 was a year full of successes regarding the
consolidation and growth of our business in the United
States, Europe, and Brazil. We achieved all the production
goals set for 2009, and the sales activities according to the
company’s strategic plan have been increased.
In Europe, the Renewable Energy Directive from 2008 and
the Fuel Quality Directive from 2009 have boosted the
development and production of biofuels to the point where
they are at their peak in terms of political and legislative
backing, and where bioethanol is conceived as a real and
necessary solution for achieving the goal of reducing GHG
emissions 10% by 2020. In the United States, the political
changes have also led to a change in legislative priorities, as
billions of dollars have been earmarked for investment
policies for the development of renewable energies,
bioethanol biomass technologies and new bioethanol
expansion projects in the transportation sector. In Brazil, the
continuous increase in the flex car local market has allowed
a fast increase in the influx of ethanol in the gasoline pool to
the point where gasoline is currently the mixing component
in a market dominated by ethanol by more than 55%. In
short, there has been a two-digit world increase in ethanol
demand in the three markets, which is truly commendable in
an economic-financial environment such as the one that we
have gone through.
Javier Salgado Leirado
Abengoa Bioenergy’s CEO
Two decades ago the company began to see the necessity
for a change in the way that society made use of natural
resources and its habits of wasting them. Nowadays, the
world is aware that fossil fuels are limited energy sources
and that their use is the main cause of greenhouse gas
emissions and, consequently, of global warming. In the field
of fuels used for transportation, biofuels are the principal
and the most viable alternative to those derived from oil in
the short- and mid-term.
The company has considerably strengthened its productive
capacity, and the expansion projects undertaken in 2008 are
practically completed. In Europe, the company has acquired
the remaining 50% of the Babilafuente plant, obtaining
total control of its yearly production of over 50 Mgal, as well
as full management of the pilot plant where bioethanol is
produced from lignocellulosic biomass. This plant was
accepted and its start-up went satisfactorily in 2009.
Additionally, the construction of the Rotterdam plant, the
largest in Europe, is in its final stage and will soon go into
operation, thereby further strengthening, if possible, our
position as the leading producer in Europe. In the United
States, construction of the two plants in the states of
Indiana and Illinois has been completed, which will double
our current production capacity in this country. In Brazil, the
expansion and construction of two cogeneration projects
from bagasse have gotten underway. These will increase the
profits and sustainability of our facilities.
This year marks the tenth anniversary of the start of
operations at the company’s first biofuel plant,
Ecocarburantes Españoles. During this decade, Abengoa
Bioenergía has gone from the initially installed 25 Mgal
capacity to nearly 800 Mgal by mid- 2010; the number of
employees has increased over 40 times; and after the
starting of this initial plant, the company has expanded to
the 14 current plants in five different countries, on three
continents.
Business Evolution in 2009
The ethanol industry has not gone unscathed by the world
economic crisis which began in 2008, as we have watched
how large companies of the competition have been doomed
to bankruptcy. Abengoa Bioenergía has been able to
navigate through a hostile economic and financial
environment, applying a strict policy of controlling expenses,
reducing costs, restraining wages and managing profits and
ABENGOA BIOENERGY
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2009 Annual Report
Letter from the CEO
The company has stayed faithful to its strategic plan of the
technology development and innovation programs. In this
sense, the company’s key milestones of 2009 were the
commissioning of the first second-generation bioethanol
pilot plant, situated at the Babilafuente facilities in
Salamanca, and the continuation of our commercial plant
project producing bioethanol from biomass in Hugoton,
Kansas. The former, with an annual production of 1.5 Mgal,
produces ethanol by using wheat straw as its main raw
material, and has allowed us to demonstrate the viability of
the enzymatic hydrolysis technology that the company
intends to cast on a commercial scale at the plant in
Hugoton, Kansas. This plant, which Abengoa Bioenergía is
developing jointly with the US Department of Energy, will
have an annual capacity of over 10 Mgal. It will be the
largest commercial bioethanol plant from biomass to date,
saving the annual emission of approximately 1 Mt CO2-eq.
2010 Strategy and Objectives
2010 arrives as a year full of challenges and opportunities.
We have been able to follow the political changes in the
principal countries that control the world economy and their
stance towards renewable energies, which indicates a
change in trends and approaches, a change oriented
towards the sustainability of energy industries and the fight
against climate change. Here at Abengoa Bioenergía we will
continue to carry out all of our activities, following the best
risk and efficiency management practices in our procedures,
raising sustainability to our utmost priority. The ethanol
markets will once again grow at a two-digit rate on each
continent.
One of our main objectives will be the consolidation of our
production and sales activities; our worldwide presence will
allow us to explore arbitration opportunities which will
surely appear in the markets. In 2010, we will focus on
quality, in terms of sustainability, against quantity. This year
our efforts will be aimed at improving the sustainability of
our production assets, as well as integrating our production
capacity currently under construction and the development
of basic engineering in our second-generation project in the
United States.
Furthermore, our product portfolio increased notably in
2009. The company has driven a portfolio with a wide range
of products with more than 420 Mgal of ethanol, 1 Mt of
animal feed (DGS), 420,000 t of sugar and 400,000 MWh,
which have caused our sales to shoot above the $1.5 billion
mark during this financial year. In addition to the
commercialization of bioethanol, in 2009 we have worked
on developing a supply network of e85. This is key to the
expansion of bioethanol in Europe, mainly in Spain and
Germany, directly supplying over 20 points in each country,
and we will continue to make a constant effort so that this
number continues to grow every year.
2009 has been a tough year from which we have learned a
lot. In 2010, we intend to strengthen our position as one of
the leading world bioethanol managers. We find ourselves
going through one of the best times in our history and we
intend to take full advantage of each and every opportunity
presented to us by the markets in which we operate.
With the aim of increasing the sustainability of our products,
we are making a huge effort to analyze and optimize our life
cycles, which include our supply chain. Our goal of having
an objective certification and traceability system of our
products’ emissions is one of our main priorities.
Bioethanol plant on the Ohio riverside, in Madison, Indiana.
ABENGOA BIOENERGY
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2009 Annual Report
Sostenibility
Sustainability
Sustainability
· Mission, Vision, Values
· Sustainable Development Policy
ABENGOA BIOENERGY
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2009 Annual Report
Sostenibility
Mission Vision, Values
Mission,
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:
To contribute to the sustainable development of the
vehicle fuels market and the bio-based chemicals
products market by utilizing renewable energy (biofuels)
and environmentally friendly technologies that reduce
carbon emissions.
To develop innovative technological solutions through
continuous investment in research and development,
resulting in more efficient production processes and
distinctive and high-value feed coproducts.
To create value for our shareholders.
To contribute to the professional and personal
development of our employees by providing continuous
training, and by establishing and monitoring
individualized goals and development plans.
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:
Vision
To be recognized as a world-wide leader in the
production and commercialization of bioethanol from
bio-renewable resources.
To be recognized as a world leader in research and
development, known for technological innovation in the
conversion of biomass to bioethanol.
To provide a superior work environment in order to
attract the best possible employees and to maintain
excellence in operations.
To attract the interest and respect of the financial
community by means of sustained growth and
technological innovation.
Creation of Value
Raw materials certification
Reduction of GHG emissions
Personal and Professional development of all
employees
Efficient use of natural resources.
Values
Honesty in relationships with clients, shareholders,
associates and co-workers.
Respect for all people under all circumstances.
Focus on teamwork by utilizing corporate tools that favor
the sharing of information.
Promote flexibility and mental attitude necessary to adapt
to continuous change.
Protection, defense and improvement of the
environment.
ABENGOA BIOENERGY
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2009 Annual Report
Our Business
Our Business
Our Business
· History
· Global Pressence
· Production Plants
· Financial Figures
ABENGOA BIOENERGY
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2009 Annual Report
Our Business
Abengoa Bioenergía is the holding company. The Business Unit is dedicated to the production and development of
biofuels for transport, bioethanol and biodiesel, among others, that employ biomass (cereal, cellulosic biomass,
sugarcane, and oleaginous seeds) as raw materials. Biofuels are used for ETBE production (gasoline additive), or for
direct blending with gasoline or diesel. Being renewable energy sources, biofuels reduce CO 2 emissions, and
contribute to the security and diversification of the energy supply, while reducing the dependency on fossil fuels in
the transportation and helping towards compliance with the Kyoto Protocol.
History
· Dedini Agro Acquisition.
· 76 M$ award from US DOE for an ethanol commercial
facility from lignocellulosic biomass.
· Abengoa Identifies the need for a
renewable alternative for transport
sector energy needs.
· Funding obtained construction started for the plants in
Lacq, indiana, and Illinois.
· Construction of the two largest facilities
in Europe.
· Lacq plant startup - 66 Mgal/year
· Ravenna plant startup - 88 Mgal/year
· Acquisition of High Plains Corporation in
the U.S.
1995 - 2001
2002 - 2006
2007 - 2009
· Joint Venture with Cepsa (Total) for ETBE facility
and 200 Kt/year biodiesel plant.
·31.2 M€ award from the Spanish Ministry of Industry to
design and develop new bioethanol production
technologies.
· Salamanca Plant Star-up . 53 Mgal/year.
· Construction start-up in: Rotterdam, Indiana, Illinois,
and san Roque.
· Plants (York, Colwich, Portales, and La Coruña).
· Over 70 Mgal of bioethanol exports in Europe.
· Prince Phillip Award for Business Excellence in the
category of Renewable Energies and Energy Efficiency.
· R&D award by the US DOE (2.2 M$ + 35.5 M$).
· York pilot plant reception and first ethanol produced
from lignocellulosic biomass.
· R&D award by the european Commission (4.5 M€).
· BCL Biomass plant startup using lignocelulose, in
Babilafuente, Salamanca (1,5 Mgal).
· Indiana and Illinois plant startup - 88 Mgal/year each.
· Biodiesel plant startup in San Roque, Cadiz - 60
Mgal/year.
ABENGOA BIOENERGY
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2009 Annual Report
Our Business
Global Pressence
With biomasa... we produce ecological biofuels, renewable energy,
sugar, and animal feed.
Abengoa Bioenergy is Europe’s largest biofuel producer (270 Mgal production capacity),
and one of the largest in the US (370 Mgal), and Brasil (30 Mgal), with a total of 670
Mgal production installed capacity annually, distributed among 14 plants, in five different
countries from three different continents. Additionally, in the near future 140 Mgal
currently under construction will be added.
ABENGOA BIOENERGY
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2009 Annual Report
Our Business
Production Plants
Ecocarburantes Españoles
Bioetanol:
DGS:
Electricidad:
Bioetanol Galicia
Bioetanol:
DGS:
Electricidad:
Biocarburantes Castilla y León
Bioetanol:
DGS:
Electricidad:
Abengoa Bioenergía San Roque
Biodiesel:
Glicerina:
Abengoa Bioenergy France
Bioetanol:
DGS:
Abengoa Bioenergy Corporation Colwich
Bioetanol:
DGS:
Abengoa Bioenergy Corporation Portales
Bioetanol:
DGS:
Abengoa Bioenergy Corporation York
Bioetanol:
DGS:
Abengoa Bioenergy of Nebraska
Bioetanol:
DGS:
Abengoa Bioenergy of Illinois
Bioetanol:
DGS:
Abengoa Bioenergy of Indiana
Bioetanol:
DGS:
Abengoa Bioenergia São Luiz
Bioetanol:
Azúcar:
Abengoa Bioenergia São João
Bioetanol:
Azúcar:
Abengoa Bioenergía
Bioetanol:
Biodiésel:
DGS:
Azúcar:
Glicerina:
Electricidad:
40 Mgal
110 000 t
135 000 MWh
50 Mgal
130 000 t
165 000 MWh
55 Mgal
120 000 t
140 000 MWh
60 Mgal
18 500 t
65 Mgal
145 000 t
25 Mgal
70 000 t
25 Mgal
75 000 t
55 Mgal
145 000 t
90 Mgal
230 000 t
(No te 1)
90 Mgal
230 000 t
(No te 1)
90 Mgal
230 000 t
20 Mgal
285 000 t
10 Mgal
245 000 t
675
60
1 485 000
530 000
18 500
440 000
Mgal
Mgal
t
t
t
MWh
(No te 2)
Notes.
Approximate figures.
1. In construction during 2009. Operations startup in early 2010.
2. Abengoa Bioenergy New Technologies pilot plants not included.
ABENGOA BIOENERGY
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2009 Annual Report
Our Business
Financial Figures
1000
Income
900
Abengoa Bioenergy’s income has increased significantly
mainly due to the consolidation for the first time of the
total operations in Babilafuente, Salamanca, the
operations startup of the plant in San Roque, Cádiz, and
the greater volume of marketing and trading activities.
1009.9 M€
800
700
600
1009.9
500
830.1
400
300
613.7
200
(1M = 1 000 000)
100
0
2007
140
EBITDA
2008
2009
131.5 M€
120
By means of geographical and raw materials
diversification, our risks management policy, and the
successful operation of our assets, Abengoa Bioenergy
has been able to obtain an EBITDA over 130 M€.
100
80
131.5
60
90.7
40
20
54.3
0
2007
Technological Investment
30
2008
2009
25.5 M€
25
Along with the US DOE (Department of Energy), the
Spanish Ministry of Industry and, the 5th European
Union Framework, Abengoa Bioenergy further advances
towards the commercialization of cellulosic ethanol, and
the development of new technologies.
20
15
21.4
10
5
25.5
7.3
0
2007
ABENGOA BIOENERGY
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2008
2009
2009 Annual Report
Our Business
GHG Emissions Reduction
2,0
The commercialization of over 420 Mgal of bioethanol
reduces CO2-equivalent emissions by approximately
1.82 Mt, equivalent to the annual emissions of
approximately 485 000 vehicles.
1,5
(1 Mgal = 1 million gallons)
(1 Mt = 1 million tons)
0,5
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.
Installed Capacity
1.82 Mt CO2-eq
1,0
1.82
1.45
1.03
0,0
2007
800
2008
2009
675 Mgal/y = 2550 Ml/y
700
Our capacity to produce ethanol soars to 675 Mgal
total per year, distributed through Europe, USA, and
Brazil (New Technologies biomass plants not included),
after the operations startup in the new plants located
in Indiana, Illinois, and San Roque, and the
consolidation of the operations in Brazil.
600
500
400
675
300
200
409
450
2007
2008
100
(1 Mgal/y = 1 million gallons per year)
(1 Ml/y = 1 million liters per year)
0
Capacity under Construction
800
2009
140 Mgal/y = 530 Ml/y
700
During 2009 the construction of the plants in Indiana,
Illinois, and San Roque finished. Besides, works
continued in Rotterdam, and began in Hugoton, which
will add an additional 140 Mgal/y to the company’s
global production capacity.
600
500
400
300
200
100
363
180
140
0
2007
ABENGOA BIOENERGY
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2008
2009
2009 Annual Report
Our Products
Our Products
Our Products
· Bioethanol
· Biodiesel
· DGS
· Sugar
· Electricity and CO2
· ABENGOA
NewBIOENERGY
Technologies
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2009 Annual Report
Our Products
Bioethanol
Biodiesel
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.
Biodiesel is a renewable fuel formed by long-chain fatty acid
methyl or ethyl esters. If the esters making up diesel 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, in relation to diesel derived
from oil, greenhouse gas emissions are reduced (including
CO2), as well as carbon monoxide (CO) emissions, and
emissions of particles and other polluting products.
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.
Advantages:
It is a clean source of fuel, renewable and for household
use.
It helps reduce dependence on oil.
It can be used in all diesel engine vehicles, without any
conversion, adjustment or special modification needed.
It is easy to produce and store.
It emits between 40% and 80% less GHG than fossil
fuels.
It increases engine lubricity and the fire point, the risk
of explosion due to gas emissions being reduced.
Distilled bioethanol is the fuel used in "flex" engines, which
run on both gas and bioethanol, or any blend of both. 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.
ABENGOA BIOENERGY
Other environmental advantages are:
It is biodegradable and non-toxic.
It improves the air quality in urban areas.
It does not pollute water.
It reduces the production of waste.
The production of biodiesel creates new opportunities for
sustainable rural development within the framework of a
farming policy more directed at the market, since it
promotes the development of energy crops and the
creation of farming industries, helping maintain
employment and income standards in the rural world.
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2009 Annual Report
Our Products
DGS
Electricity and CO2
DGS or Distillers Grains Solubles is the co-product resulting
from obtaining bioethanol by converting cereals starch
through fermentation into bioethanol and its subsequent
extraction through distillation. The abovementioned coproduct is a source of vegetable protein, energy, fiber and
vitamins, used as animal feed. Aware of its implications, the
DGS undergoes strict quality controls that guarantee both
its nutritional properties and those derived from enforcing
current Food Safety legislation. As a result of this, Bureau
Veritas certified DGS against an internal reference, covering
all food quality and safety requirements in force in Europe.
Work is also being conducted to obtain a European
specification for the product.
The configuration of some process plants includes
cogeneration units that make them self-sufficient in terms
of electricity, and allow them to export any surplus. This is
the case with the plants located in Spain, which have a total
installed power of 77MW. Electricity is generated through
a natural gas turbine. In Spain, this electricity replaces
marginally the electric power produced in coal and fuel
plants, which, according to the values obtained through the
Ciemat ACV calculation method, which basically translates
into 350 000 t CO2 emissions annual savings (according to
data from the Joint Research Centre-Eucar-Concawe, JEC
2007).
A similar situation occurs in the Netherlands. Likewise, in
the facilities located in Abengoa Bioenergía Brasil electricity
is generated from the combustion of the sugarcane
“bagasse”, obtained after the milling process. It is fed to
the burners which generate steam for its use in the
production process and in generating electricity.
Currently, two cogeneration projects are being built in the
most recent acquired plants in Brazil, two 70 Mw units fed
with "bagasse", possibly increasing one of them up to 140
Mw. In this case, the emissions associated with combustion
will be non-existent because the CO2 emitted is the same
amount captured during the sugarcane plant growth,
obtaining clean and renewable energy. Therefore, any use
or capture of this CO2 means a reduction of GHG emissions,
and therefore contributing to the reduction of global
warming.
DGS - Distillers Grains with Solubles
The production of bioethanol obtained through
fermentation involves CO2 emissions. Globally, this CO2 is
rated as zero because it will be in turn absorbed by the
vegetable plant for its growth. Therefore, any use or
collection of this CO2 involves a reduction in greenhouse
gas emissions and so it helps reduce global warming.
Sugar
Abengoa Bioenergia Brasil obtains sugar from sugar cane
grinding.
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.
Currently CO2is supplied to gas companies. In the United
States CO2 is captured from production operations at two
Abengoa Bioenergy facilities located in York, Nebraska, and
Colwich, Kansas, and sold to third parties who further
process the gas and sell it for use in the beverage and flash
freezing industry. For the project in The Netherlands,
studies have been carried out for the possibility of supplying
all the CO2 production to greenhouses. In the US the
company will be part of PCOR, Plains CO2 Reduction, an
organization led by the North Dakota University, focused on
the search and development of solutions to capture CO2 on
an industrial scale.
Currently, Abengoa Bioenergy Brazil has an estimated
505 000 t of crystal sugar production, 245 000 t of which
are exported and 260 000 t are traded in the domestic
market.
ABENGOA BIOENERGY
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2009 Annual Report
Our Products
New Technologies
Production
Abengoa Bioenergy’s mission is to develop and implement
technological solutions through Science and Innovation, in
order to provide tools for Sustainable Development.
First-generation technologies
The company has improved the bioethanol production
process in all pilot plants, with the result that the
ethanol/cereal output is increased, following an EBIDTA
evaluation model.
On this basis, the company applies innovative effort to the
whole chain of value of its products.
Raw Materials
At the same time, it is experimenting with new enzymes, to
evaluate the improvement in output and reduction in
impacts that it may obtain.
Raw materials account for 60% to 70% of the production
cost of biofuels and, during their lifecycles, between 30%
and 40% (according to Concawe) of GHG emissions.
Because of this, programs are being developed with the
following objectives:
So as to guarantee development and application of
improvements, Abengoa Bioenergy has developed a
document management and standardization system which.
To reduce the economic and environmental impacts of
raw materials used for biofuel production.
To identify and develop alternative species for the use
of first and second generation production technologies.
To evaluate the potential of other resources such as
forest, industrial and farming waste.
To evaluate the use of different cereal varieties obtained
from different types of seeds.
Second-generation technologies
For the use of new raw materials as sources of carbon, the
company is focusing its efforts on enzyme hydrolysis and
gasification and catalysis processes.
In relation to the first process, a simulation model based on
Aspen Plus has been developed (chemical processes
simulation software), to study ligno-cellulosic biomass
fractionation and conversion, which was used as the basis
for the design of a hybrid production plant proposed to the
US Department of Energy.
Also, in July 2007, the construction of a biomass pilot plant
in York was finished, where, in September of this year, the
first batch of ethanol from wheat straw was produced. The
company is currently optimizing the operation units in order
to have the necessary information for the design of a
biomass plant on an industrial scale in Hugoton.
In relation to the gasification process, this year the following
efforts have been carried out:
Launch of the catalyst research programs, included in
the I+DEA (Automotive Ethanol Research &
Development) project;
Design of the sustainability model for the thermochemical process (technical-economic and
environmental);
Begin of work, in Spain, on projects on the use of forest
biomass waste;
a gasification plant for steam production (a plant
integrated into a biomass-based ethanol production
plant) was designed.
ABENGOA BIOENERGY
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2009 Annual Report
Our Products
In order to develop a catalyst suitable for the conversion of
synthesis gas to ethanol, this year was launched an
ambitious program on which existing catalysts combine with
new technologies and catalytic system concepts. the
processes are also being modeled to be used as a basis for
the development of new technologies.
Finally, aware of the environmental benefits derived from
the use of biofuels, Abengoa Bioenergy is implementing
demonstration programs in relation to the use of e85, e95.
Also it is studying ethanol-diesel mixtures. To meet these
objectives:
stable mixtures are being developed, to comply with
petrol and diesel engine requirements;
these mixtures are being tested in all commercial
engines;
and being used in captive fleets, to demonstrate their
use.
Products
Abengoa Bioenergy has developed, evaluated and validated
new processes for the revaluation of co-products from the
production of bioethanol from cereals, obtaining improved
nutritional value. The steps to obtain the patent of said
processes are already under way.
Another concept on which the company is focusing its
efforts is the Bio-refinery, in the aim to obtain market value
products from biomass. At present, the company is
developing the conceptual model and carrying out market
research on potential products.
Given the consumption required for ethanol production
from biomass in its different modalities and to carry out the
bio-refinery processes, several projects have been launched
for the selection of suitable enzyme mixtures and on the
design of the necessary process engineering in the
production plants.
ABENGOA BIOENERGY
17
2009 Annual Report
Our Activities
Our Activities
Our Activities
· Raw Materials Origination
· Production
· Bioethanol Origination
· Bioethanol, DGS, and Sugar Trading
· New Technologies
ABENGOA BIOENERGY
18
· Guaranty of our Activities
2009 Annual Report
Our Activities
Europe
Introduction
AB Bioenergy Hannover GmbH
Abengoa Bioenergy France, S.A.
Abengoa Bioenergy Germany GmbH
Abengoa Bioenergy Netherlands, B.V.
Abengoa Bioenergy Trading Europe, B.V.
Abengoa Bioenergy UK, Ltd
ASA Bioenergy Holding A,G
Abengoa Bioenergy keeps its position as a point of
reference in the development of New Technologies for the
production of biofuels and the sustainability of raw
materials, applying an enormous amount of resources for
this purpose. But its trading area also places the company
as a services company, that contributes global solutions,
with a great capacity for the marketing and management of
commodities, always supported by the global production
capacity and raw material procurement, as well as efficient
operations, basic foundations that contribute reliability and
critical mass key to the optimum development of the
activity.
United States
Abengoa Bioenergy Corporation
ABC Issuing Company, Inc.
Abengoa Bioenergy Biomass of Kansas, LLC
Abengoa Bioenergy Engineering & Construction, LLC
Abengoa Bioenergy Funding, LLC
Abengoa Bioenergy Hybrid of Kansas, LLC
Abengoa Bioenergy Maple, LLC
Abengoa Bioenergy Meramec Renewable, Inc.
Abengoa Bioenergy New Technologies, Inc.
Abengoa Bioenergy of Illinois, LLC
Abengoa Bioenergy of Indiana, LLC
Abengoa Bioenergy of Kansas, LLC
Abengoa Bioenergy of Nebraska, LLC
Abengoa Bioenergy of SW Kansas, 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 US Holding, Inc.
The combination of Abengoa Bioenergy’s international
marketing and cellulosic bioethanol technology, with the
agricultural capacities, productive and local marketing,
allow for significant growth in the bioethanol global
market, and provide the technology that will help obtain
fewer costs per gallon of bioethanol.
Brazil
Abengoa Bioenergia Brasil S.A.
Abengoa Bioenergia Agrícola Ltda.
Abengoa Bioenergia Trading Brasil Ltda.
Abengoa Bioenergy contributes towards sustainable
development by placing on the market fuel compounds
obtained from renewable resources (biofuels) through the
employment of environment-friendly technologies that help
towards net reduction in polluting emissions, for use in
public transport and private vehicles.
Abengoa Bioenergy’s corporate offices in Seville.
The business unit covers the management of the following
companies:
Spain
Abengoa Bioenergy develops innovative technological
solutions through continuous R&D investment. These
solutions are put into practice in the production processes,
so that production costs can match those of conventional
fossil fuels, and the DGS co-products can be differentiated
from the competition.
Abengoa Bioenergía, S.A.
Abengoa Bioenergía Inversiones, S.A.
Abengoa Bioenergía Nuevas Tecnologías, S.A.
Abengoa Bioenergía San Roque, S.A.
Biocarburantes de Castilla y León, S.A.
Bioetanol Galicia Novas Tecnoloxias, S.A.
Bioetanol Galicia, S.A.
Ecoagrícola, S.A.
Ecocarburantes Españoles, S.A.
ABENGOA BIOENERGY
Abengoa Bioenergy complies its commitment with its
shareholders to create value, and contributes with the
personal and professional development of its employees,
19
2009 Annual Report
Our Activities
through continuous training and the establishment and
controls of individualized plans.
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.
Abengoa Bioenergy creates new opportunities for
sustainable rural development, since it encourages energy
crops and the creation of farming industries, thus helping
maintain employment and income levels in rural areas.
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.
Bioethanol and biodiesel are renewable and clean energy
sources which, for some time now, replace reliably and
credibly gasoline and diesel in vehicle engines, and that
contribute to guaranteeing and diversifying the supply of
energy. Their use, either in a pure state or blended with
fossil fuels, reduces CO2 emissions, prevents the advance of
the climate change, and reduces the emission of polluting
agents into the environment.
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.
The company’s activities can be grouped in 5 major areas:
Grain Procurement
Bioethanol Origination
Production
Bioethanol, DGS, and sugar Trading
New Technologies
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.
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
Bioethanol, is produced in plants in Europe and the US, and
more recently in Brazil. Bioethanol is obtained from cereal
grain, through chemical processes and treatment, to
produce either ETBE (a component of all types of gasoline),
or for direct blending with gasoline, obtaining biofuels,
mainly e85 (a mixture of 15% gasoline and 85%
bioethanol), but also as e10 (90% gasoline and10%
bioethanol). The DGS co-product is obtained during the
bioethanol production process. This is a compound with a
ABENGOA BIOENERGY
20
2009 Annual Report
Our Activities
high protein content resulting from the extraction of the
starch in cereals, and it is ideal for the production of animal
feed.
New Technologies
Abengoa Bioenergy intends to have a leadership position in
the bioenergy industry and become a world producer of
biofuels. Its mission is to develop innovative technological
processes for the production of bioethanol and DGS. To
achieve this goal, the company is working on the
development of manufacturing and processing
technologies, with the best and the most efficient operating
practices.
The production of bioethanol from sugar cane, also returns
sugar as a co-product. This sugar is processed to make it
suitable for human consumption, and for further use in
producing other food products.
Currently, Abengoa Bioenergy owes 14 bioethanol and DGS
producing plants distributed throughout Europe, the United
States, and Brazil, which provide a total installed production
capacity of 675 Mgal per year, approximately. Additionally,
the company also has two plants under construction or in
project, in Europe and the US.
Its team of engineers and scientists, in coordination with
other R&D centers, universities and industrial partners,
develops innovative processes in order to increase cerealbased bioethanol performance, develop new co-products,
improving the quality of existing products, and develop
ligno-cellulosic biomass technology to produce bioethanol.
The business strategy includes development and registration
of the Intellectual Property, to be able to provide to third
parties new technologies under management agreements.
Bioethanol, DGS, and Sugar Trading
Abengoa Bioenergy has established offices in key places for
global bioethanol trading, in Rotterdam, The Netherlands,
with immediate access to Europoort and exports; in St.
Louis, USA, in the heart of the main cereal production and
cattle breeding area in the country; an d in São Paulo, Brazil,
the birthplace of the bioethanol-from-sugarcane production.
From all these Abengoa Bioenergy meets the demand for
bioethanol, DGS, and sugar from European, American, and
Brazilian markets.
Obtaining a grant from the US Department of Energy, for
development, construction and operation of the first
American commercial plant for production of bioethanol
from cellulosic biomass in the State of Kansas proved the
confidence placed by this country’s Government on the
excellent performance of Abengoa Bioenergy’s activities,
and on its commitment to quality and sustainable
development, as has been implemented in the company’s
plants in the last few years.
Market fluctuations, political conditions in the different
geographical areas and other factors affecting company’s
activities, both in terms of acquisition of raw materials, and
in production of marketed products, are carefully analyzed
from the global point of view, in order to obtain a better
vision of global markets. Meticulous analysis and risk
management yield a greater performance of the production
processes, always within the scope of sustainable
development, respecting the environment, human rights
and the community, as one of its principles. Abengoa
Bioenergy offers its clients the option of selecting the
solution that best meets their needs, providing the
necessary reliability and flexibility in the different bioethanol
supplies carried out.
ABENGOA BIOENERGY
Main Achievements
This has been a year of consolidation and growth for
Abengoa Bioenergy, in the US, Europe, and Brazil. Contrary
to expectations, due the the global crisis, which has
influenced all company’s activities, 2009 has been a year
full of successes.
21
2009 Annual Report
Our Activities
Europe
United States
The most significant milestones achieved in Europe during
2009 have been:
Northamerican activities achieved milestones:
Construction of the Mount Vernon plant in Indiana,
with an annual bioethanol production capacity of 88
Mgal.
Construction of the Madison plant in Illinois, with an
annual bioethanol production capacity of 88 Mgal.
Abengoa Bioenergy Corporation has been awarded the
Greater St. Louis Top 50 Award for the third year in a
row.
Abengoa Bioenergy Corporation receives the Top
Bioenergy Company Award.
Abengoa Bioenergy of Nebraska receives the Agriculture
Award.
Abengoa Bioenergy Operations receives the Chemical
Safety Excellence Award.
Abengoa Bioenergy Corporation secures the OHSAS
18001:2007 standard.
172 Mgal of bioethanol marketed.
457 000 t of DGS marketed.
Start of operations at the biodiesel plant in San Roque,
Cádiz (Spain), with a production capacity of 60 Mgal,
per year.
Start-up of the Babilafuente biomass plant in
Salamanca, with a production capacity of 1.3 Mgal, of
second generation bioethanol per year.
Promotion and expansion of the network of biofuel
service stations in Spain and Germany, with over 20
directly supplied service points in each country.
Acquisition of the remaining 50% in the company
Biocarburantes de Castilla y León, previously half-owned
by the Ebro-Puleva group.
Staging of the VIII World Biofuels Conference.
Celebrations to mark the tenth anniversary of the
Ecocarburantes Españoles plant in Cartagena.
Official inauguration of the Abengoa Bioenergy France
plant.
Construction of the Rotterdam plant in the Netherlands,
capable of producing 127 Mgal, of bioethanol per year.
Abengoa Bioenergy France obtains the ISO 9001, ISO
14001 and OHSAS 18001 quality standards.
209 Mgal of bioethanol distributed in European
markets, a 50% increased from 2008.
Bioethanol exports pool consolidation, managing a total
volume of 99 Mgal.
37 Mgal third-party bioethanol originated.
Spanish e85 market consolidated with 132 000 gallons
produced and marketed in over 20 service stations
e85 supply in public service stations networks in
Germany started, 98 000 gallons in 20 stations.
524 000 t of DGS marketed.
396 000 MWh of electricity cogeneration.
Brazil
The most significant milestones achieved in Brazil:
Opening of new corporate offices in São Paulo, Brazil.
Incorporation of Abengoa Bioenergia Trading Brasil,
specifically entrusted with the task of managing the
commercialization of the bioethanol and sugar
produced in the country.
Implementation of the Competitiveness Plan within the
Brazilian companies.
Construction of cogeneration facilities at the company’s
70 MW bioethanol plants in Brazil.
Abengoa Bioenergia Brasil receives the MasterCana
Social Award.
40 Mgal of bioethanol marketed.
418 000 t of sugar marketed.
2009 Operating Results
bioethanol biodiesel
Mgal
Mgal
Europe
171
United States
170
Brazil
Total
ABENGOA BIOENERGY
19
DGS
t
498357
glycerine electricity
t
MWh
7909
439000
7909
439000
468964
34
375
sugar
t
324227
19
967320
22
324227
2009 Annual Report
Our Activities
February, which supplied its first batch of biodiesel in March
of 2009. It is designed to operate with different types of
vegetable oil - soybean, rapeseed and palm - and does not
therefore depend on one sole supply source. At start-up,
the plant operated with blends of soybean oil, crude palm
oil and refined palm oil, reaching up to 80 % of palmitic
acid in the blend. The plant will produce 60 Mgal of
biodiesel, which will meet the quality parameters prescribed
by European biodiesel standard EN 14214. It will also
produce 20,000 t of glycerin with 85 % purity. With this
new plant now in operation, Abengoa Bioenergy has the
necessary biodiesel market knowledge and production
technologies, thus confirming its leading role in forging a
global biofuel market for the transportation industry.
Production Europe
Abengoa Bioenergy is the European leader in the production
of bioethanol as a biofuel, and it currently operates three
plants in Spain: Ecocarburantes Españoles, in Cartagena
(Murcia); Bioetanol Galicia, in Teixeiro (La Coruña); and
Biocarburantes Castilla y León (Babilafuente), with a total
installed capacity of 40, 52 and 53 Mgal a year, respectively.
Additionally, Abengoa Bioenergy, through Abengoa
Bioenergy France, has consolidated its operations in its
fourth plant in Europe, with a production capacity of 66
Mgal a year.
The construction of the Rotterdam plant, with a projected
production capacity of 127 Mgal per year, has progressed
substantially and is expected to start operations by mid2010.
Construction on a fifth plant in Rotterdam (Netherlands),
which was started in 2008 and continued during 2009, is
now in its final stage and the plant is expected to begin
production towards the start of 2010. It is set to be
Europe’s largest bioethanol plant and one of the biggest in
the world, with a projected bioethanol production capacity
of 127 Mgal per year.
Main Achievements
In September, an agreement was closed to acquire 50 % of
the shares in the company Biocarburantes de Castilla y
León, S.A. from Ebro Puleva. The full integration of this
plant, along with the other plants in Europe, will generate
considerable logistic and operational synergies and will
position Abengoa Bioenergy as Europe’s leading producer,
with direct control over an installed production capacity of
approximately 210 Mgal, a year in Europe alone.
Thanks to its marketing initiatives launched across Europe in
2009, coupled with its experience in the sector, the
company has become one of Europe’s leading bioethanol
managers and suppliers.
In addition to marketing bioethanol, Abengoa Bioenergy
worked over 2009 to develop a bioethanol supply network
in Europe, primarily in Spain and Germany, with over 20
directly supplied points in each country. This network is key
to expanding the reach of bioethanol, and although the
project is still in its early stages, it promises to become an
undisputed reality within the next few years, capable of
supplying biofuels to consumers across Europe.
Construction work was completed on a second generation
bioethanol demonstration plant, with an annual production
capacity of 1.3 Mgal, of bioethanol from biomass. The
plant was brought into operation in September of 2009 and
is the world’s first plant to utilize this technology on such a
scale. The facility will be used to improve the design of the
commercial plants to be constructed in years to come, while
assessing operational costs, identifying bottlenecks and
streamlining operations.
May witnessed the World Biofuels 2009 8th annual
conference in Sevilla, which, for three days, brought
together over 120 representatives of biofuel producing
companies and associations, government and official
representatives of the European Union and the United
States, oil operators, car manufacturers, investment banks,
producers of commodities and consultants. The conference
tackled, among other subjects, the growth of over 30 % in
worldwide demand for biofuels, the new regulations
intended to champion biofuels and the need to comply with
strict sustainability requirements. The event also included a
financial analysis of the prevailing situation affecting the
sector and the projected availability of financing for
operations and investments within the biofuel industry.
The biomass plant is located within Biocarburantes de
Castilla y León’s plant in the municipality of Babilafuente,
which produces 53 Mgal, of bioethanol a year from grain,
effectively meaning that both facilities share services and
process chains. The company believes that the quickest way
of developing technology for producing second generation
biofuels is through “hybrid plants”, which combine first and
second generation installations to cut the cost of
implementing new technologies and harness the advantages
offered by economies of scale.
In September, the company held the official opening
ceremony for Abengoa Bioenergy France’s plant in Lacq.
The event, which was attended by leading figures from
Abengoa Bioenergía San Roque manages the biodiesel
production plant of the same name commissioned in
ABENGOA BIOENERGY
23
2009 Annual Report
Our Activities
Abengoa Bioenergy and from the Spanish and French
governments, stressed the excellent business opportunities
presented by the region and also underscored the positive
impact that the company’s business has already had on the
area.
Legislative Advances
To mark the tenth anniversary of the Ecocarburantes
Españoles plant in Cartagena (1999-2009), a ceremony was
staged in November to celebrate the milestone. An opendoor working day was organized for company workers and
their families, along with a range of other activities.
The Directive on renewable energy sources (2008/28/EC)
requires that by the year 2020 at least 10% of transport fuel
in all countries of the European Union be made from
renewable energy, equivalent of 30-35 million tonnes of oil
(or 50 million tonnes of ethanol) every year. This obligation
is backed up by a requirement for national indicative targets
that progressively increases renewable transport fuel
consumption from today’s level to at least the 10% level.
The legislation provides a special incentive to lignocellulosic
biofuel, by allowing the consumption of every litre to count
double in meeting the target.
On the 25th June of this year two new European laws came
into force that will both consolidate and further stimulate
the biofuel market for the next decade.
Over 2009, Abengoa Bioenergy France was awarded the
corresponding ISO 9001, ISO 14001 and OHSAS 18001
standards of quality following implementation of its
Integrated Management System (IMS). The company has
therefore reiterated its commitment to quality, the
environment and occupational risk prevention. The
existence of these certificates not only heightens customer
loyalty, but also the loyalty and trust of its employees,
thereby improving the working environment and speeding
up the flow of information and decision-making throughout
all levels of the organization, part of the company’s move
towards continuous and sustainable improvement of its
processes.
Also by the year 2020, 20% of all energy consumed in the
European Union has to be supplied from renewable sources.
This colossal demand for green energy will, of course, also
be supplied by renewable electricity and renewable heating
and cooling. However, it offers the prospect that biofuel
demand will be significantly higher than the minimum 10%
of transport fuels.
Industria
The revised Directive on fuel quality (2009/30/EC) provides a
further incentive to consume biofuels by introducing a
mandatory reduction of 6% in the greenhouse gas
emissions of petrol and diesel life cycles between 2011 and
2020.
During last year, in domestic and international marketing
activities and due to the experience gained in the business,
Abengoa Bioenergy has managed to consolidate its position
as one of the main bioethanol managers and suppliers on
the whole continent of Europe. The company has managed
to successfully distribute over 209 Mgal.
In order to meet this mandated expansion in demand, by the
end of 2010 the 5% maximum limit for ethanol in petrol is
to be doubled to 10% throughout Europe. Also in the
legislation, a special dispensation has been granted by
Europe’s lawmakers to allow for the increased volatility of
petrol when it includes small blends of ethanol. This
dispensation will significantly lower the costs of adding
ethanol to petrol without affecting vehicle performance or
safety in any way. Work is now underway at the European
Standards Institute to upgrade the European ethanol and
petrol standards to meet these changes.
Most bioethanol is produced in four plants in Spain and
France, but additionally over 37 Mgal are obtained from
third party suppliers, which increase procurement capacity,
business control at continental level, and a clear
international projection in terms of the company’s potential.
In addition to bioethanol marketing, in 2009 work has been
done to develop a e85 supply network (bioethanol 85% gasoline 15%) in Europe, mainly in Spain and The
Netherlands. This network is a key element in the
expansion of bioethanol and, although it is still in its initial
stages, it promises to become in the next few years a de
facto reality which will provide consumers with biofuels
throughout Spain and Europe.
ABENGOA BIOENERGY
Another feature of the new legislation is that from 2010, a
system of certification will come into operation that will
guarantee the sustainability of biofuels sold into the
European market. These certificates will incorporate a
variety of strict social and environmental criteria that biofuels
must adhere to, including a minimum 35% saving of
greenhouse gases compared to the average emissions from
petrol and diesel. Abengoa Bioenergy has been preparing
assiduously to ensure that it is ready to comply with these
sustainability certificates, as soon they are rolled out.
24
2009 Annual Report
Our Activities
Part of the CO2 produced during the grain-to-ethanol
transformation process is sold to installations close to the
plant, thereby eliminating the need for these companies to
produce their own additional CO2 and, therefore, taking
even greater advantage of the bioethanol production
process and reducing carbon dioxide emissions into the
atmosphere.
Combined, these two new Directives secure the future of
existing biofuel production facilities and those under
construction in Europe. At the same time, they provide a
long term growth path for the biofuel industry with existing
commercial technology, and provide special incentives and
encouragement to the development of the next generation
of technology from lignocellulose. In short, it provides the
market platform and the vision for the decade to come
that industry has been seeking.
Similarly, electricity is generated during the production
process, which provides power for the entire plant, with the
surplus being returned to the national power grid.
Production Plants
Bioetanol Galicia
Ecocarburantes Españoles
„ Owned by Abengoa Bioenergy (90 %) and Xes Galicia
(10 %).
„ Installed capacity of 52 Mgal, of bioethanol per year.
„ Annual DGS production capacity of 120,000 t.
„ Electrical power production capacity of 165,000 MWh
per year.
„ Annual grain consumption of 340,000 t.
„ Owned by Abengoa Bioenergy (95 %) and IDAE (5 %).
„ Installed capacity of 40 Mgal, of bioethanol per year.
per year.
The plant, which is owned by Bioetanol Galicia, S.A., is
currently in operation in Teixeiro (A Coruña) and boasts a
yearly bioethanol production capacity of 196 Ml, 52 Mgal.
The company is 90 % owned by Abengoa Bioenergy and
10 % by Xes Galicia.
The company Ecocarburantes Españoles, S.A. owns a
bioethanol production plant in the Valle de Escombreras in
Cartagena, Spain. Abengoa Bioenergía, S.A. owns 95 % of
the company, while the Spanish Institute for Energy
Diversification and Savings (Instituto para la Diversificación y
Ahorro de la Energía, or IDAE) owns 5 %.
ABENGOA BIOENERGY
The surplus electricity generated during bioethanol
production, which greatly outstrips actual plant
consumption, is returned to the national power grid and
accounts for part of the profits from the process.
25
2009 Annual Report
Our Activities
Biocarburantes de Castilla y León
Abengoa Bioenergy France
„ Owned by Abengoa Bioenergy (69 %) and Oceol
(31%).
„ Final installed capacity of 66 Mgal, of bioethanol per
year.
„ Annual DGS production of approximately 145,000 t.
„ Estimated cereal (corn) consumption of roughly 500,000
t per year.
„ Estimated annual consumption of wine and sundry
alcohol of roughly, 13 Mgal.
„ 100% owned by Abengoa Bioenergy.
„ Installed capacity of 200 Ml, 53 Mgal, of bioethanol per
year.
per year.
The plant, owned by the company Biocarburantes de
Castilla y León, S.A., is located in Babilafuente, Salamanca,
and has a yearly production capacity of 200 Ml, 53 Mgal,.
In September 2009, Abengoa Bioenergy acquired the
remaining 50 % of the company Biocarburantes de Castilla
y León, previously owned by Ebro Puleva.
Abengoa Bioenergy France owns the fourth Abengoa
Bioenergy plant in Europe (the first outside Spain) for
ethanol production. It is 69 % owned by Abengoa
Bioenergy and 31 % owned by Oceol, an association of the
region’s main agricultural cooperatives and industries.
As with the other Spanish plants and in accordance with
applicable law, plant-generated electricity that is not
employed in bioethanol production is returned to the power
grid.
ABENGOA BIOENERGY
This plant employs corn and low-quality vegetable alcohols
as raw materials and is located on the Petrochemical
Platform at Lacq, Pyrénées-Atlantiques (France). Projected
total annual production capacity amounts to 250 Ml, 64
Mgal, of bioethanol, broken down into 200 Ml, 55 Mgal,
using corn as the raw material, and 50 Ml, 13 Mgal
produced from the distillation of low-quality vegetable
alcohols.
26
2009 Annual Report
Our Activities
Biomass Plant
New Projects
Abengoa Bioenergy Netherlands
„ Bioethanol production capacity of 1.3 Mgal, per year.
„ Projected annual bioethanol production capacity of 127
Mgal.
„ Projected annual DGS production capacity of 380,000 t.
„ Annual grain consumption of 1.2 Mt.
Managed by Abengoa Bioenergía Nuevas Tecnologías, the
biomass plant was completed in December 2008 and has
been fully operational since September 2009. It is the
world’s first plant to utilize this technology on such a scale.
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.
Abengoa Bioenergy Netherlands first started construction
on the plant, located in Europoort, Rotterdam, in
September 2007. The company plans to bring the 480 Ml,
127 Mgal, plant into service during the first quarter of
2010. The plant will generate 75 direct jobs.
This plant will be used to improve the design of the
commercial plants to be constructed over the coming years,
assess operating costs, identify bottlenecks and streamline
operations.
ABENGOA BIOENERGY
27
2009 Annual Report
Our Activities
Abengoa Bioenergía San Roque
Biodiesel
Biodiesel is a renewable biofuel that is obtained through the
reaction of a light alcohol, such as ethanol or methanol with
any type of animal or vegetable oil or fat, through a
chemical reaction known as esterification, obtaining
biodiesel or Fatty Acid Methyl Ester (FAME) and glycerin.
Biodiesel does not contain any sulfur and, compared to that
obtained from oil, reduces the emission of greenhouseeffect gases (CO2, among others), of carbon monoxide (CO),
particles (PM), as well as other contaminant products.
Moreover, it is highly suitable for use as a fuel and can
completely or partially replace diesel engine fuels, without
any need for special conversions, adjustments or regulations
to the vehicle engine; it similarly increases the engine
lubricity and flash point, thus reducing the danger of
explosion due to gas emanation.
„ Annual biodiesel production capacity of 60 Mgal.
„ Crude glycerin production capacity of 22,000 t per year.
„ Estimated vegetable oil consumption of 205,000 t per
year.
The conversion technology chosen for the plant belongs to
Desmet-Ballestra, the leading company in the vegetable oil
processing and biodiesel production sector. This technology
uses crude vegetable oils for biodiesel production and its
main differentiating characteristic, when compared to the
other technologies, is the flexibility in plant design for the
processing of any type of vegetable oil. The employed
vegetable oils are mainly soya, rape and palm, or fractions
of these.
The Abengoa Bioenergía San Roque plant is located on a
site annexed to the Gibraltar Refinery on the Palmones de
San Roque industrial estate (Cádiz, Spain). It was started up
in February 2009 and started supplying the refinery in
March.
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
produces 200,000 t of biodiesel, which is utilized in 5 %
blends with diesel at the Cepsa refinery. The plant also
produces 20,000 t of glycerin with 85 % purity.
The plant directly employs 45 highly qualified workers.
ABENGOA BIOENERGY
28
2009 Annual Report
Our Activities
Bioenergy Company of the Year Award on occasion of the
multi-disciplinary Bioenergy Engineering Conference 2009,
which recognizes companies capable of producing biofuels
that are sustainable in terms of energy and the
environment, technically efficient and economically
profitable.
Production United States
Abengoa Bioenergy is one of the largest bioethanol
producers in the United States. After starting production at
the Ravenna plant back in 2007, the company currently has
an installed annual production capacity of approximately
196 Mgal, at four plants in Nebraska, Kansas and New
Mexico. Abengoa Bioenergy is similarly one of the largest
traders of ethanol and DGS for animal feed and its
customer base includes the likes of Shell, Exxon-Mobil,
Total, Valero and BP. Most of the ethanol is marketed in the
form of e10, although sales in e85 have been increasing
steadily. Over 2009, construction work continued on two
major 88 Mgal, plants similar in scale to the Ravenna plant,
the first in Madison, Illinois, and the other in Mount
Vernon, Indiana. With these two new facilities, total annual
production capacity in the U.S. will climb to over 772 Mgal,
boosting the company’s ability to meet the demands of the
entire American Midwest.
CSX Transportation, one of the leading U.S. transportation
firms, providing rail and intermodal services for the
transportation of goods, awarded the company Abengoa
Bioenergy Operations the annual Chemical Safety
Excellence award for its operating facilities, an accolade that
reflects the company’s commitment to maintaining and
promoting the safety of motor vehicles and its continuous
safety processes when loading tank cars.
On a final note, Abengoa Bioenergy of Nebraska, which
operates the Ravenna plant, has contributed enormously to
the local community and to many of its organizations, in
keeping with the company’s approach to corporate social
responsibility. It is also heavily involved in supporting
research and development of alternative energies at local
universities and supports the Department of Economic
Development in generating business opportunities in the
region for cooperatives and local farmers. The company has
been awarded the Agriculture Award in recognition of its
contributions to the farming industry. The accolade was
granted by Ravenna Chamber of Commerce, in
collaboration with the City Council, the Office of Economic
Development and the local community to promote and
increase economic activity in Ravenna and the surrounding
area.
The group’s three longest standing plants continue to
operate under the control of Abengoa Bioenergy
Corporation in Colwich, Kansas; in Portales, New Mexico;
and in York, Nebraska. However, different companies have
been incorporated for new projects, including the new
plants in Indiana and Illinois, the now operational plant in
Ravenna, Nebraska, and the future commercial biomass
plant in Hugoton, Kansas. Similarly, separate companies
have been created for marketing, engineering and
construction activities.
The company strives to implement the best practices in
order to streamline all its processes, improve performance
and minimize risk within the production, marketing and
R&D areas. Illustrating the success in this field is the official
recognition that the different North American group
companies received in 2009.
All Abengoa Bioenergy plants in North America have
integrated OHSAS certification with the ISO 9001:2000,
14001:2004 and 18001:2001 standards, underscoring the
commitment of Abengoa Bioenergy Operations to quality,
safety and the environment. This set of rules is a verifiable
health and safety system and was sought to reflect the
company’s desire to have a standardized occupational
health and safety system in place that can be used for the
purposes of certification and registration.
Main Achievements
For the third year in a row, the Regional Chamber of St.
Louis included Abengoa Bioenergy Corporation, the parent
of the business group’s North American companies, within
the “Greater St. Louis Top 50” ranking at the start of 2009,
in recognition of its leadership in the region, its vocation
towards sustainable development, its role in creating new
jobs and its start-up of new facilities in the Greater St. Louis
area and its head offices in Chesterfield.
Furthermore, the American Society of Agricultural and
Biological Engineers (ASABE) and the American Society of
Civil Engineers (ASCE), in collaboration with other
engineering organizations, awarded the company the first
ABENGOA BIOENERGY
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Climate Change
Legislative Advances
Another major legislative priority for the U.S. Congress
addressed early in 2009 was climate change legislation.
Although no final legislation was passed during 2009, both
the Senate and House passed or proposed detailed
legislation to address global warming. The overall goal of
this legislation is to reduce greenhouse gas emissions (GHG)
in the manufacturing and transportation fuels sectors by up
to 20% over the next 10 years, and to establish a cap and
trade system for the regulation of these emissions. On June
27, the House passed the American Clean Energy and
Security Act (ACES), which was their version of a climate
change bill. This legislation generally acknowledges the
environmental benefits of agriculture and ethanol, but the
ethanol industry believes that it does not adequately allow
credit (or “offsets”) to ethanol producers for the reductions
in GHG emissions that result from the manufacture and use
of ethanol in transportation fuels. Pursuant to this version
of the legislation, ethanol would be responsible for its
emissions from manufacturing (effective in 2014). However,
ethanol would not be charged with the combustion
emissions as the fuel is burned, as those emissions are
excluded from regulation under the cap and trade provisions
of the bill on the theory that growing crops absorb CO2 to
offset combustion emissions from burning ethanol. There
still are possibilities to negotiate “offsets” for carbon
emissions from the use of ethanol as the legislation
continues to be negotiated. Before this bill becomes law,
the Senate must also pass a version of climate change
legislation, then the two Houses will have to agree on a final
version in conference committee and the final compromise
legislation would be submitted to the President for
signature.
2009 U.S. Legislative and Regulatory Actions
The Presidential and Congressional elections late in 2008
were historic not only because President Obama was the
first African American to be elected President of the United
States, but also because he is the first Democrat to win the
White House with a clear mandate since Lyndon Johnson in
the 1960’s. Democrats picked up several seats in both the
Senate and the House of Representatives, and the House
now has the strongest Democratic majority since the mid
1970’s. This has resulted in changes in legislative priorities,
bringing a more liberal perspective to policy issues, including
renewable energy and climate change.
Federal Legislation
Economic Stimulus
On September 30, the Senate introduced its initial version of
Climate Change legislation for discussion. Overall, this bill
was similar to the version passed by the House, although it
requires greater cuts in emissions (20% vs. 17%) by 2020.
The Senate version still incorporates a cap and trade system
rather than a carbon tax system, and subsequent revisions of
the Senate legislation replaces (broadens) the definition of
cellulosic biofuels to “Advanced Green Biofuels”, and
expands the definition of “Renewable Biomass” feedstock
to include algae.
The highest and most immediate priority of the new
congress was economic stimulus legislation and the creation
of new jobs. On February 17, 2009 the final $800 billion
stimulus legislation was signed into law, including
substantial funding for numerous programs intended to
promote the use of renewable fuels such as ethanol. These
programs included hundreds of millions of dollars in loans
and grants for rural businesses through the Business and
Industry loan guarantee program; loan guarantees for
commercial renewable energy systems both for renewable
electric power generation and for biofuels used as
transportation fuels; and specific funding for biomass
programs related to renewable fuels.
ABENGOA BIOENERGY
Climate Change legislation and most other legislative efforts
stalled late in 2009 due to focus on health care legislation.
However, all pending bills remain active and in place into
2010, which is the second year of this 111th Congress, and
are likely to be addressed again early in 2010.
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2009 Annual Report
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Administrative Regulations
Renewable Fuel Standard Regulations
Department of Agriculture and EPA agree that international
ILUC emissions are significant, and can be reasonable
accounted with credible scientific accuracy.
Congress previously 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. However,
regulations controlling the implementation of this RFS play a
critical role in the effectiveness and ultimate benefit of this
program. The formal Notice of Proposed Rulemaking for the
RFS was released for public comment in early May by the
Environmental Protection Agency (EPA). Overall the EPA
recognized the benefits and significant GHG reductions from
the use of ethanol, but serious concerns with the proposed
rule remain, including:
The importance of this legislation is that the RFS legislation
requires new plants to demonstrate that their fuels provide
at least a 20% reduction in GHG emissions compared to
baseline gasoline in order to qualify as conventional
Renewable Biofuels and qualify for the benefits of the
legislation. However, regardless of the outcome of the ILUC
debate, it is important to note that virtually all ethanol plants
in operation during 2009, as well as Abengoa Bioenergy’s
two new facilities recently completed in Indiana and Illinois,
will be exempt from this requirement, and will automatically
qualify for the benefits of the RFS as conventional
Renewable Biofuels.
EPA’s analysis underlying the rule is not transparent, as
models, inputs and outputs not made available
Models are not validated against real-world data
There is a tremendously high level of uncertainty and
reliance upon scientific theories which are not well
established or recognized, especially with regard to
calculation of international indirect land use impacts
attributed to biofuels.
E10 Waiver Request
Another regulatory issue important to the ethanol industry is
the request pending before the EPA to grant a waiver
allowing the use of higher ethanol blends. On March 6,
2009 several ethanol groups filed a formal 211(f) waiver
request with EPA to allow increased ethanol blends in
gasoline “up to e15”. This is important because the only
ethanol blends currently certified for use as transportation
fuels are e10 (10% ethanol blended with 90% gasoline) and
e85 (85% ethanol blended with 15% gasoline). Since e85 is
only certified for use in specially produced Flex Fuel Vehicles
(FFVs), as the total ethanol consumption in the U.S.
approaches this 10% level, additional volumes can only be
sold as e85 until some other interim blend greater than 10%
is certified. EPA had 270 days to review, seek public
comment, and rule on the request but has not yet ruled.
Significant testing has been completed in order to confirm
the compliance of e15 with fuel requirements and although
some testing is still being performed, testing completed to
date indicates that there are no significant changes in
emissions, catalyst and exhaust temperatures, materials
compatibility and overall performance when increasing
blends from e10 up to e20, and as a result there should be
no significant problems with certification of the use of the
fuel for automobile use.
The most significant issue faced by the ethanol industry in
these regulations is the calculation of “indirect land use
change” (ILUC), which is used to penalize ethanol
production from feed grains for changes in land use alleged
to result from the increased use of those feed grains for
ethanol. Lifecycle analyses for both the RFS and for the
California state Low Carbon Fuel Standard (LCFS) include
emissions from ILUC. Concerns and issues over
implementation of this young science include:
There is no scientific consensus on how to measure
indirect land use change effects (especially
international effects)
Current ILUC analyses by EPA and CARB underestimate
the lifecycle benefit of the livestock feed co-product,
process yield improvements, and other important
factors
Indirect effects are being applied selectively to biofuels
(petroleum and other fuels assumed not to cause
indirect GHG effects)
A final ruling by the EPA is expected in 2010, and if for
some reason the EPA chooses not to grant the waiver for
e15 blends, there is legal and historical support for the
approval of an interim blend of 12% (e12).
This controversial attribution of ILUC impacts will be
significantly limited if the language of the House Climate
Change bill is ultimately adopted. In that bill the House
Agriculture Committee Chairman negotiated the mandatory
exclusion of any consideration of international ILUC effects
from all federal for a period of six years while the National
Academies of Sciences study the issue. Even after the study,
ILUC impacts could not be considered unless both the U.S.
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The ethanol industry argues that California improperly
attributes these ILUC emissions to ethanol alone and that
indirect effects are not calculated or attributed to gasoline or
any other fuels. If rules proposed to implement this
legislation are not revised, Midwest corn ethanol will have
little benefit under the LCFS when it goes into effect January
of 2011, and ethanol produced in California or even in Brazil
will likely have somewhat higher values within the state of
California. The California Air Resources Board (CARB) did
appoint an Expert Work Group to continue to evaluate these
carbon intensity numbers, but they may consider changes
only for cellulosic ethanol, and not for corn based ethanol.
The Major concern in addition to the size of the California
market is the fact that as many as 20 other states have
indicated that they may copy whatever model California
ultimately adopts as a basis for LCF legislation in their own
states.
Other EPA Regulatory Actions
While Congress considers formal Climate Change legislation
to regulate GHG emissions, President Obama (through the
EPA) is moving forward to further regulate GHG emissions
independently of congressional legislation under regulatory
authority granted by the Clean Air Act of 1990. Steps
announced by EPA during 2009 to accomplish this goal
include:
EPA proposed a rule on September 15th that would
increase vehicle fuel economy and reduce GHG
emissions. CAFÉ standards would increase to 35.5
mpg by 2016, but credits would be given for duel
fueled or FFV vehicles to the extent alternative fuels are
actually utilized in these vehicles.
On September 22, EPA issued a final rule establishing
GHG reporting requirements for 85% to 90% of U.S.
emissions (those sources exceeding 25,000 metric tons
per year of CO2). Emissions data must be collected
starting January 1, 2010, and reported in 2011.
On September 30, EPA issued a proposed rule to
require any new (or expanded) industrial facility
emitting more than 25,000 tons per year of CO2 to
obtain construction and operating permits that would
require Best Available Control Technologies (BACT),
energy efficient measures to limit GHG emissions, and
even place a limit on the number of permits that could
be issued.
The ethanol industry continues to attack this issue through
providing additional data and studies, working with EPA to
influence CARB ultimate decision, work with California
legislature to create a legislative fix, and potentially the filing
of a lawsuit against CARB to prevent implementation as
arbitrary and not based on sound science. However, it is
important to note that CARB action only controls California
fuels, not national fuel policy. Even within California, EPA
still has ultimate jurisdiction over most fuel matters.
Regardless of what California requires to reach its goals, the
national RFS continues in full force unless modified by EPA
or the US Congress, and petroleum marketers will still be
required to use their required percentage gallons of ethanol
just like the rest of the country. California may choose to
use ethanol produced in California, or to some degree RIN’s,
but refiners there will still be obligated to blend their
appropriate percentage of ethanol when considering all
gallons of finished gasoline sold by them within the U.S.
State Legislation
The most important piece of state legislation for the ethanol
industry is probably the implementation by California of its
Low Carbon Fuel Standard (LCFS) Legislation. On April 23,
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 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 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, results in the conclusion that ethanol’s total GHG
emissions are not significantly better than gasoline, and in
some specific cases could be worse.
ABENGOA BIOENERGY
If good science prevails and ILUC impacts are evaluated on
proven scientific analyses rather than assumptions, LCF
programs have 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.
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2009 Annual Report
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Abengoa Bioenergy Corporation - Portales
Producction Plants
Abengoa Bioenergy Corporation - Colwich
„ 100% owned by Abengoa Bioenergy Corporation.
„ Installed bioethanol production capacity of 27 Mgal per
year.
„ Installed DGS production capacity of 75,000 t per year.
„ Annual sorghum consumption of 260,000 t.
year.
„ Combined annual consumption of corn and sorghum of
240,000 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 produced is not dried in the
process and 100 % of the co-product is sold in its natural
state. The plant can operate with corn and sorghum
simultaneously. Bioethanol production capacity stands at
102 ML, 27 Mgal, per year and the plant currently employs
48 highly qualified workers.
One of the three operational plants fully owned by Abengoa
Bioenergy Corporation in North America. The plant currently
operates at 100 % capacity and continues to report
excellent efficiency and consistent operations. Production
capacity amounts to 95 ML, 25 Mgal, per year, achieved
through continuous batch cooking and fermentation
processes. The CO2 generated is captured and refined by an
on-site client and the plant currently employs 48 highly
qualified workers.
The plant is one of the oldest dry mill bioethanol facilities in
the United States, having been operating non-stop 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 utilize corn and sorghum at the same time and 50
% of its energy requirements are covered with methane
from a municipal solid waste landfill.
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2009 Annual Report
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Abengoa Bioenergy Corporation - York
Abengoa Bioenergy of Nebraska
year.
„ Annual corn consumption of 520,000 t.
year.
The plant currently operates at 100 % capacity and
continues to report excellent levels of efficiency and
consistent operations. Over 50 % of the produced CO2 is
captured and refined by an on-site client. The facilities also
provide services and logistical support to Abengoa Bioenergy
New Technologies’ adjacent pilot biomass plant. Production
capacity stands at 212 ML, 56 Mgal, per year, achieved
through continuous batch cooking and fermentation
processes. The plant current employs 48 highly qualified
workers.
The subsidiary company Abengoa Bioenergy of Nebraska is
charged with managing the plant in Ravenna, Nebraska
(United States). The company is fully owned by Abengoa
Bioenergy. 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 333 ML per year, 88 Mgal,
achieved through continuous fermentation. It employs 60
highly qualified workers. The facility is Abengoa Bioenergy’s
largest to date, and is the first in North America to employ
continuous fermentation technology. The project includes a
double railway circuit for simultaneous loading and
shipment of 10 ML, 2,7 Mgal, 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 thus
has a minimum possible impact on the ecosystem.
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Abengoa Bioenergy of Indiana
Abengoa Bioenergy of Illinois
year.
year.
Construction got underway in 2007. Two Abengoa
subsidiaries, Abener and Abencs, designed and constructed
the plant, which was commissioned towards the end of
2009 and will begin commercial operations at the start of
2010. Once operational, the plant will employ 63 workers.
Abengoa Bioenergy of Illinois was incorporated in 2007 and
started construction on its plant towards the end of the
same year. Abener and Abencs designed and constructed
the facility, with start of operations provisionally scheduled
for the start of 2010. Once operational, it will employ 63
workers.
The plant will have the capacity to dry all or part of the DGS
it produces and will be located next to the Ohio River, which
provides access to practically the entire American Midwest
and to export markets worldwide.
The plant will produce bioethanol and DGS from corn. It will
likewise have the capacity to dry all or part of the DGS it
produces and will be located next to the Mississippi River,
providing access to practically the entire American Midwest
and to export markets worldwide.
The facilities will employ continuous fermentation
technology and are a replica of the Nebraska plant.
The facilities of Abengoa Bioenergy of Illinois will employ
continuous fermentation technology and are a replica of the
Nebraska and Indiana plants.
ABENGOA BIOENERGY
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2009 Annual Report
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Plants under Construction
Abengoa Bioenergy Biomass of Kansas
„ Installed bioethanol-from-biomass production capacity
of 13 Mgal per year.
„ Daily biomass consumption of 930 t.
Abengoa Bioenergy Biomass of Kansas is a project to
construct a 13 Mgal celullosic bioetanol and 120 MW
renewable energy plant using biomass (farming residues,
non food energetic crops, and wood chops). The plant will
be located Wst of Hugoton, Kansas, and will create 170 full
time jobs. This project is estimated to help reduce CO2equivalent emissions by aproximately 1 million tons per
year. The project is will start construction in September
2010 and operations by late 2011.
ABENGOA BIOENERGY
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João, in the city of São João da Boa Vista. Both units are
expected to be brought into service in April of 2010, to
coincide with the start of the harvest season.
Production Brazil
Brazil is one of the world’s largest markets for bioethanol
and bioethanol production and 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.
In October 2009, Abengoa Bioenergia Brasil was awarded
the MasterCana Social accolade in the Environmental
category thanks to its project “Abengoa Bioenergia Brasil:
Inventário de Gases de Efeito Estufa no setor
Sucroenergético”, singled out from a total of 40 projects
from Brazil’s most prominent companies. The award is
handed out by the magazine Jornal Cana, Brazil’s leading
specialized publication on biofuels, and was awarded in
recognition of Abengoa Bioenergia Brasil’s leadership in
sustainability and the major impact that its Greenhouse Gas
Inventory initiative is having on the Brazilian biofuel
industry.
Abengoa Bioenergy is the only company worldwide that
operates in the world’s three largest bioethanol markets:
Europe, the United States and Brazil. Following its market
integration, the company is starting to report significant
production growth at its existing plants in Brazil. It is also
looking into the possibility of constructing a new plant and
is now marketing its Brazilian production abroad more
efficiently, based on the commercial networks it has in
place. Moreover, the company intends to adapt cellulosic
ethanol technology to sugarcane bagasse so as to increase
production in the mid-term and cut costs efficiently.
The company, through its subsidiaries in Brazil, operates
two sugarcane bioethanol plants with a total annual
installed capacity of approximately 30 Mgal, and annual
sugarcane consumption of 530,000 t.
Main Achievements
Following the incorporation of a new company called
Abengoa Bioenergia Trading Brasil, 2009 witnessed the
start of bioethanol exports from Brazil to both Europe and
the United States. Having taken this important step
forward, the company is now coordinating efforts with the
companies Abengoa Bioenergy Trading Europe and
Abengoa Bioenergy Trading US to trade bioethanol on the
most important markets worldwide, while also exploring
new markets and opportunities. This move strengthens the
company’s standing worldwide, with production facilities
and trading presence in the world’s three top bioethanol
markets. The new company was incorporated in the city of
São Paulo, close to the production facilities, and new offices
have also been opened to centralize operations and other
corporate services.
As part of its commitment to sustainable development,
Abengoa Bioenergia Brasil continued construction work on
two state-of-the-art energy cogeneration units in 2009,
each with an installed capacity of 70 MW, which can be
increased to 140 MW. The plants use sugarcane bagasse as
raw material to fuel the boilers, which produce steam to
generate electricity and power the production processes.
The cogeneration plants are located in the state of São
Paulo, one at Abengoa Bioenergia São Luiz, in the city of
Pirassununga, and the other at Abengoa Bioenergia São
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Abengoa Bioenergia Brasil - São João
Producction Plants
Abengoa Bioenergia Brasil - Pirassununga
„ Installed bioethanol production capacity of 12.5 Mgal
per year.
„ Annual sugar production of roughly 245,000 t.
„ Annual sugarcane consumption of 2.4 Mt.
year.
„ Annual sugar production of roughly 285,000 t.
„ Annual sugarcane consumption of 3 Mt.
In addition to the preceding projects, the company started
construction on two 70 MW cogeneration plants in Brazil,
which are annexed to existing sugar and ethanol production
facilities in the state of São Paulo.
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Trading, Logistics, and Raw
Materials Origination
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.
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.
Products and Services
Abengoa Bioenergy Trading Europe provides the following
services and activities:
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.
Promotion of bioethanol produced by various European
manufacturers by means of the “pool” concept (sum
of volumes), which contributes flexibility, security and
potential in operations.
Management of supplies and assesses costs.
Search for sources of bioethanol and other alcohols to
process at Abengoa Bioenergy’s plants.
Bioethanol management control and logistics
coordination, including shipping, handling and storage.
Guaranty of supply contract fulfillment, optimizing
bioethanol distribution and logistics
Clients after-sales services
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.
The company provides producers with the possibility of
accessing global bioethanol markets, incorporating the
production capacity of a joint sum that trades with the main
oil companies and with ETBE producers in Europe. It deploys
a logistics network to comply with maximum reliability and
flexibility in the supply of commercial ethanol. Moreover,
Abengoa Bioenergy Trading Europe provides the various
parties with access to accumulated production, which
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2009 Annual Report
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guarantees flexibility, quality and reliability in bioethanol
supplies.
Ecoagrícola
Through national and international marketing activities in
2009, and based on experience acquired in this business,
Abengoa Bioenergy has been able to establish itself as one
of the main managers and providers of bioethanol
throughout the European continent. It has managed to
satisfactorily distribute over 209 Mgal.
From the total marketed and distributed amount this year
by Abengoa Bioenergy, 37 Mgal have been originated in
third party producers to complete its own production and
posses greater response capabilities towards its clients
generated demand in Europe. This origination capability is
strengthen by the newly constituted Abengoa Bioenergy
Trading Brazil company, which increases direct supply
capability, providing product control, and optimizing the
brands operations and competiveness, furthermore favoring
a significant international projection.
Within the Bioenergy business group, Ecoagrícola is the
company responsible for the comprehensive management
of buying raw materials (cereals, oleaginous seeds, and
vegetable oils) required for the Abengoa Bioenergy
bioethanol and biodiesel plants, together with the
marketing of associated coproducts, DGS, acting as raw
material receiver, and marketing the coproduct. Its activity
is centered on plants owned by Abengoa Bioenergy
(Ecocarburantes Españoles, Bioetanol Galicia, and
Biocarburantes Castilla y León,Abengoa Bioenergy France,
Abengoa Bioenergía San Roque, and the other plants
planned in Europe). Recently it has also been asigned the
task of acquisition of biomass for the commercial scale
production plant inaugurated within the Babilafuente
facilities, in Salamanca.
In addition to the bioethanol marketing, in 2009 the
company has also worked on the development of a
European e85 (85% bioethanol and 15% gasoline) supply
network, mainly in Spain where it already has a 20 service
stations network with annual sales of 132 000 gallons of
e85, and in Germany, where an additional 20 supply
stations are supplied with 98 000 gallons. This network is
the key for bioethanol expansion and, although it is still at
an initial phase, it will quickly turn into reality over the
coming years and will provide the consumers with
bioethanol throughout Spain and Europe.
For the past 10 years Ecoagrícola has been successfully
developing the contracting of cereals (barley, wheat and
corn) required for Abengoa Bioenergy’s bioethanol plants
operations, by means of two well-differentiated
mechanisms, purchasing on the free market and direct
contracting with farmers through PAC programs, with Set
Aside Lands contracts or under the Energy Crops scheme.
The latter type of contracting has also been initiated foin
2007, for oleaginous seeds intended for the new Abengoa
Bioenergía San Roque biodiesel plant.
Market Overview
Raw Materials Market Situation in 2009
In 2009, the price of bioethanol fell in the first six months,
due to lower demand for gasoline and the drop in the price
of crude oil. However, the strength in bioethanol demand
and the very low level of imports from third countries had
led to a considerable increase in prices during the second six
months, reaching a rise of up to 25% at the end of the
year, with respect to market prices at the start of the
period.
Cereals
After the regression of the economic markets in 2008,
which led to a widespread drop in raw materials, reaching
minimums in December, January 2009 began with a
considerable rise on the minimums seen in 2008 mainly
caused by the new entry of funds in the stock exchanges,
the start of material hedging and the gradual recovery of
the oil price, reaching yearly maximums at the end of
May/start of June 2009.
Similarly, gasoline, crude oil and sugar, the commodities
related to bioethanol, have risen considerably, with the
forecast for the coming year being at levels much higher
than in 2009.
ABENGOA BIOENERGY
Since June/July 2009, with the exit of the cereal harvests in
the northern hemisphere, the gradual confirmations of
improvement as regards that expected by the most positive
analysts, and after the publication of negative global
macroeconomic information, fear again takes hold of the
stock markets with an accelerated exit of speculator funds
and a significant correction in the prices of the materials
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2009 Annual Report
Our Activities
Vegetable oils
represented in the futures market with yearly minimums
during the first fortnight of September, a period which has
meant a turning point, starting a gradual price recovery,
coinciding with the first somewhat encouraging global
financial data, generalized rises in global stock exchanges
driven by the entry of funds because of the attraction for
investors of entering at yearly minimums and the increase in
interest in closing physical positions.
In the first months of the year, from January to May 2009,
vegetable oil prices rose, mainly affected by the significant
reduction in soy bean production in South America, where
countries such as Argentina and Brazil saw their harvests
reduced by around 25 Mt due to a drought.
The reduced stock, combined with high demand by China,
made prices reach a yearly high in May. The weakened
dollar and the rise in the price of crude oil, which went
from being listed in the New York market at 48 USD/Barrel
in January to 70 USD/Barrel in June, also had an effect.
In the last quarter, with 2009 consumption closed, the
demand is trying to close the hedges of the first positions
for 2010. The market is waiting to know the first advances
of sowing in the 2009/10 season, which will determine the
new harvest yield. This forecast, the winter climatological
evolution and fluctuations in demand will determine price
movements during 2010.
In the May-October period, prices fell mainly due to little
short-term oil demand. The stocks of crude palm oils
significantly increased, making prices go down, whilst USDA
reports forecast record soy bean harvests in the US and a
significant recovery in South America.
The correlation of palm oil, soy oil and crude oil has been
high in the May-October period, which made it possible to
reactivate the demand for oils for the biofuel industry.
Oil prices have been rising since October, mainly influenced
by the significant entry of investment funds in the
commodities markets as refuge assets. The principal shortterm factors for palm oil are bullish, since the plantations
have been affected by strong flooding in Malaysia and
Indonesia, forecasting a reduction in harvest.
For its part, soy oil has closely followed soy bean prices,
which has picked up due to delays in the US harvest, a
country which will meet international demand until the next
South American harvest.
Although the oil demand remains cautious, the 2009
demand is covered, which means that prices for December
will undergo little variation since the demand is now
centred on 2010.
ABENGOA BIOENERGY
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2009 Annual Report
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Trading United States
Assistance in developing marketing and logistics plans
for Maple projects
2009 proved to be one of the most volatile years in history
with the collapse and subsequent rebound in US and global
equity markets and commodity markets. We saw crude oil
prices trade in a range thoughout the year that represented
over 100% of its underlying value. The same is true for
gasoline, and many other energy products. Through
disciplined hedging and risk management strategies the
company has been able to navigate this volatile market well
to accomplish our margin management goals.
Abengoa Bioenergy Trading US also engaged in the
following trading activities for its own account in 2009:
Ethanol Buy-Sell transactions
Ethanol Logistical Swap transactions
Commodity Trading
Market Overview
Bioethanol
2009 can be defined as “survival of the fittest.” Many
challenges faced the industry that saw many competitors fall
victim to market volatility and poor risk management.
The ethanol market began the year trying to rationalize
significant overcapacity in the industry. This was
accomplished by narrowing crush margins to the point only
the most efficient, well positioned, and well managed plants
ran consistently. 2009 saw continued increases in
discretionary blending as ethanol to RBOB spreads spent
most of the time highly favorable to refiner blending. As we
advanced into late 2009 margins rebounded significantly
with a better supply demand balance sponsored by higher
blends in California and the Southeast US.
Looking forward into 2010, we continue to see supply and
demand imbalances between 1 and 1.5 billion gallons of
surplus. This represents about 10% of the industry. This
will keep crush margins in a modest range causing, at times,
some capacity to idle. However, we are optimistic that with
the passing of the RFS2 legislation and the positive rhetoric
around mid-level blending from 12% to 15% ethanol, we
will see an improving margin environment as we go through
2010.
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 ABUS facility Budgets and
Forecasting
ABENGOA BIOENERGY
DGS
Co-Product Sales and Marketing volumes in the US have
increased substantially in the past year and continue to
provide strong contribution to company revenues. Distiller's
grains production in the US has increased over 60% from
2007 to 2009. Inclusion rates in feed rations, both
domestically and internationally in all animal species has
increased significantly as nutritional value and sustainability
of quality supply continue to redefine the animal feed
landscape. Abengoa Bioenergy is a leader in quality control
and customer service participating in numerous university
feeding trials and serving on various committees within the
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2009 Annual Report
Our Activities
industry. In 2009, ABTUS successfully initiated export
programs of DDGS via barge through ABI and ABIL assets.
The case of sugar is different, as it is a completely
globalized market, where prices are set depending on
global supply and demand. As Brazil is the world’s largest
sugar producer, it is the country that often provides the
supply deficit, mainly in India. Even so, Brazil cannot cover
the estimated global deficit of 8 million tons for 2009. This
means, as in the case of ethanol, prices are rising to
maximum historic levels. Global supply and demand
forecast by the International Sugar Organization until 2020
show a continued destruction of stock, which backs our
price forecast at a new level above recent years.
Trading Brazil
Two types of ethanol are consumed for fuel in Brazil:
anhydrous ethanol, used for blending with gasoline, and
hydrated ethanol, for direct use as fuel.
The Brazilian government promotes the use of ethanol by
making it compulsory to blend 25% anhydrous ethanol in
gasoline. This obligation is set down in the Decree of the
Ministry of Agriculture no. 143 of June 27th, 2007 and
approved in the official bulletin of June 29 th, 2007 (Portaria
MAPA No. 143, DE 27.6.2007 - DOU 29.6.2007). This
compulsory blend may vary between 20% and 25%
depending on product availability. It is foreseen that this
obligation will exist during the coming years. In addition to
this, Brazil has already developed an entire industry for the
direct consumption of hydrated ethanol as fuel, so that all
car manufacturers produce models called Flex (they can
consume pure ethanol, gasoline or any mixture of the two)
and the fuel distribution systems are fully adapted for this
purpose, so that all gas stations have hydrated ethanol gas
pumps.
The Brazilian industry uses sugar cane as a raw material to
produce ethanol and sugar. Hence, most producers provide
both products. 2009 has been characterized by the
climatological effect called "El Niño", which causes heavy
rain during periods when it would not normally rain, directly
affecting sugar cane quality.
The ethanol market is mainly influenced by local supply and
demand, with a small volume allocated for exports and the
non-existence of imports. Thus, the demand is largely
marked by hydrated ethanol consumption by Flex vehicles,
growing at a rate of around 3.2 million vehicles per year,
adding on to a fleet of some 11 million flex vehicles
estimated for the end of 2009. Together with the vehicles
using gasoline mixed with anhydrous ethanol, this fleet has
a total planned consumption of 25 billion liters (6.6 billion
gallons) of ethanol during 2009 compared with an
estimated production of 23.3 billion liters (6.1 billion
gallons). This is having a direct effect on prices, taking them
to a new level. The outlook for this market is also
promising, as it is estimated that in the coming years the
sale of flex cars shall maintain their growth level until now,
with an expected demand of 61.5 billion litters (16.2 billion
gallons) of ethanol for 2017, according to information from
the Brazilian government. To cover this demand, Brazil has
a very important challenge as it has to commission 25
factories per year until that date.
ABENGOA BIOENERGY
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2009 Annual Report
Our Activities
have improved on the prior art. We have continued to
develop technical and economic models and analyses for
various configurations of thermochemical conversion of
biomass, and to explore the different options for
introducing biomass gasification technologies. Our pilot
plants are constantly evolving. We have introduced
improvements to the starchbased production process so as
to raise the performance of bioethanol/grain conversion.
New Technologies
Abengoa Bioenergy New Technologies was incorporated in
early 2003 to position Abengoa Bioenergy as the leading
innovator in the Bioenergy industry. ABNT mission is to
develop leading edge processing technology for ethanol
production and co-products.
Abengoa Bioenergy New Technologies team of in-house
engineers and scientists coordinate with other R&D centers,
universities, and industrial partners to develop innovative
processes to increase ethanol yield in dry mill facilities,
improve DDGS quality, develop new animal feed products,
and develop biomass technology for ethanol and coproducts production.
The company is experimenting with new enzymes to assess
the potential improvements to performance and reductions
in impact. Major progress has thus been made in output
performance as measured by liters of bioethanol per ton of
grain.
Abengoa Bioenergy has also worked on the development,
evaluation and validation of new processes to valorize the
co-products of cereal-based bioethanol production, with a
special focus on improving co-product consistency,
enhancing the digestibility and concentration of proteins,
and developing pig and free-range poultry feeds.
As part of its business strategy the company will generate
and capture intellectual property to license technology to
third parties under facility management agreements.
The strategic mission of Abengoa Bioenergy New
Technologies consists in developing and demonstrating
technological solutions through science and innovation, with
the aim of meeting Abengoa Bioenergy’s strategy plan
targets, which include the following:
According to data produced by the Joint Research Center
(JRC), raw materials account for 60 to 70 % of the
production cost of biofuels, and 30 to 40 % of greenhouse
gas emissions over biofuel life cycles. Abengoa Bioenergy is
working on four distinct lines of research in the field of raw
materials: analyzing and identifying the most sustainable
raw materials at the global scale; assessing potential local
supply of biomass to Abengoa Bioenergy’s facilities in
Europe; developing software to track the sustainability of
raw materials used; and selecting the most suitable species
for b oth first and secondgeneration technologies.
Develop and market biomass technologies at
competitive prices.
Increase the added value of existing by-products and
develop new by-products.
Improve current dry milling technology.
Promote the development of energy crops.
Develop the biomass market.
Develop end-use programs for biofuels.
Fully aware of the environmental benefits of using biofuels,
the company is undertaking e85 and e95 demonstration
programs and research aimed at developing stable ethanoldiesel blends to satisfy the requirements of gasoline and
diesel engines.
The company is focusing its efforts in the processes of
enzymatic hydrolysis, gasification and catalysis for the use
of new raw material as carbon sources.
These programs demonstrating potential new applications
of bioethanol as an end product have focused on captive
fleets of heavy vehicles ‟ buses and construction machinery.
Fuel analysis has been guided by a strategic focus on blend
stability, engine performance and engine part durability
when using e-diesel. The various studies and
demonstrations using e-diesel have shown a reduction of
up to 70 % in visible smoke, up to 40 % in particulate
matter, and up to 30 and 6 %, respectively, in carbon
monoxide and nitrogen oxides emissions.
The company has conducted extensive research on
enzymatic hydrolysis at its pilot plant at York, Nebraska.
Having acquainted itself with the process and operating
procedures, Abengoa Bioenergía Nuevas Tecnologías has
set in motion a second-generation 1.3 Mga BCyL
bioethanol demonstration facility. The data thus collected is
critical for developing the design of the first industrial
facility using this technology, now being implemented as
part of a project funded by the DOE.
In the field of gasification and catalysis, over the course of
2009 the company continued its ambitious program to
develop heterogeneous catalysts for converting synthesis
gas into bioethanol. The company has filed applications for
two Spanish patents over groundbreaking catalysts that
ABENGOA BIOENERGY
Another concept that has attracted our research team is
bio-refining, the process of obtaining marketable products
from biomass. The company is developing integrated
concepts that combine first- and second-generation
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2009 Annual Report
Our Activities
technologies to identify and select high value-added
products that can be derived from biomass and to integrate
enzyme production and microalgae-based carbon capture
facilities within bioethanol production plants.
Biosynergy
The Biosynergy project aims to use biomass to synthesize
bioproducts ‟ chemicals or materials together with the
production of secondary energy carriers ‟transportation
fuels, power and/or CHP through development of
biorefinery. The research is focused on the development of
advanced and innovative fractionation and conversion
processes, combining biochemical and thermo-chemical
pathways, and process development from the laboratory
scale to pilot plant scale.
The significance of biocatalysts ‟ or enzymes ‟ in the
biochemical route to biomassbased bioethanol production
has led the company to dedicate a specific line of research
to developing optimized enzymes that more effectively
reduce consumption and thus mitigate economic impact.
We are working on isolating and achieving the expression
of the genes underlying enzymatic activities, isolating and
improving producer microorganisms, characterizing and
optimizing enzymatic mixtures, optimizing operating
conditions and raising productivity. These lines of research
are all geared towards lowering production costs and
reducing enzyme dosage.
The objective of Abengoa Bioenergy’s activities is to
generate data necessary for the evaluation of different
options for physical or chemical fractionation of pre-treated
feedstock and post-treated materials. These data are
necessary for developing process configuration and selecting
suitable equipment for the biorefinery plant. They are also
required to develop a conceptual plan of a biorefinery plant
which converts agricultural wastes from energy crops into
ethanol and value added co-products.
After preliminary assessment of the potential for using
microalgae cultures to capture the carbon dioxide
generated by prevailing production processes, the company
set in motion an ambitious development program to isolate,
improve and select carbon capture and biofuel production
microorganisms, develop laboratory-scale techniques to
cultivate and process these microorganisms in biofuel
settings, optimize production systems so as to attain
viability, develop post-cultivation processes of conversion
into target products, and, finally, integrate the productive
process with industrial activities.
Achieved milestones:
Assessment of part of the biorefinery concepts
considered under technical, economic and
environmental criteria.
Study of the main bioproducts that can be produced
from the different biomass fractions.
Technical and economic analysis of the different pretreatment options.
Technical and economic analysis of the different
concepts based on combination of biochemical and
thermo-chemical processes.
Projects
I+DEA Project
Abengoa Bioenergy Nuevas Tecnologías (ABNT) is leading
the multidisciplinary consortium, whose main objective is to
generate knowledge for the use of ethanol as a fuel.
Singular Strategic Project (PSE) in energy
crops
The specific objectives in this project are:
Development of energy crops for current and secondgeneration technology.
Development of enzyme mixtures for the enzyme
hydrolysis process that reduce the impact of this phase
on the total manufacturing cost.
Significant progress in ethanol synthesis catalysts.
Complex process designs and in-depth analysis.
Analysis of mixture stability, features and durability of
engine components.
Demonstration of the use of e-diesel in bus fleets and
machinery, as well as onboard emission measurement.
Start of development of new applications: burners,
marine and high load and motorcycles/mopeds.
Development of legislation for tank design and cleaning
up of soil after ethanol spills.
ABENGOA BIOENERGY
Abengoa Bioenergy, Ecoagrícola and ABNT are taking part in
this project, awarded by the Spanish government to develop
energy crops for different applications (heat, electricity and
biofuels). The consortium is formed by many different
partners from the energy sector.
External repercussions associated to the use of cereals
as energy crop.
Development of a tool capable of identifying the cereal
consumed in ethanol production plants, associating
GHG emissions in the production and supply chain.
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2009 Annual Report
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The Bioref-integ project aims to study and develop
biorefining concepts from already existing fuel producing
industrial complexes, in order to increase their
competitiveness by coproduction of new products. The
project analyses different market sectors: bioethanol,
biodiesel, pulp/paper, oil refining, energy production, food
industry and agricultural sector. The evaluation of the
biorefinery concepts included within the projects includes
technology assessment and an economic analysis and study
of emissions.
First batch of cereal varieties optimized for ethanol
production selected.
Agronomic development of Jerusalem Artichoke and
Sweet Sorghum (crop techniques, harvesting periods
and techniques, sugar yield…).
Hybrid Project
Abengoa Bioenergy Nuevas Tecnologías is leading the
execution of this project. The main objective is to design,
build and operate the commercial 380-million liter hybrid
biomass and starch plant.
Abengoa Bioenergy aims to give support to activities
identifying existing industrial complexes within the
bioethanol sector and potential products that can be coproducts of it, as well as to develop biorefinery simulation
models within the bioethanol sector.
Demonstrating the commercial viability of the biomass
to ethanol conversion process.
Verifying that the technologies developed can be
adapted to current and future plants.
Identification and characterization of ethanol producing
facilities in Europe.
Modeling and evaluation of the integrated ethanol
production process from cereal, evaluating its coproducts.
The subsidiary ABNT has been chosen to design, build and
operate the large biofinery demonstration plant for the DOE,
whose subsidy will partially fund the project. The biorefinery
plant will be located next to a starch ethanol plant, which
will together form a hybrid complex in Hugoton, Kansas,
USA.
The biorefinery plant will have a minimum conversion
capacity of 700 t/day and will consist of two parts:
enzymatic hydrolysis (EH) and gasification. The EH part will
convert the biomass (400 t/day) into ethanol, lignin and
animal feed. The Gasification part will convert 300 t of
biomass per day into syngas, which will be burned for steam
generation. The steam will be used inside the biomass plant,
and the surplus sold to the neighboring starch plant
CO2 SUST
Project funded by the Cenit program (Ministry of Science
and Innovation).
Coordinated by Carburos Metálicos (Air Products group)
General objective: developing sustainable technologies for
the use of CO2.
ABNT will collaborate with the Polytechnic University of
Valencia, the University of Seville, Cener and Inabensa.
Development of selective catalysts for CO2
hydrogenation for ethanol synthesis.
Development of the renewable process to produce
ethanol from CO2 and hydrogen.
Development of the CO2 transformation process of
fermentation, as well as conversion processes into
biomass algae products generated
Evaluation of the life cycle of the proposed alternatives
and their impact on the life cycle of current ethanol
producing technologies from cereals.
Receiving subsidy for the phase 1 contract for $38M
from the DOE.
Staff hired and offices contracted for the project.
Land and water contracts signed.
Proforma approval for the hybrid starch/biomass plant
obtained
Approval for project pre-construction and the EPC
program obtained.
The simulation model for enzymatic hydrolysis and
gasification completed
Starch technology selected.
Assignment and contracting of architecture and
engineering consultancies.
Project engineering phase completed.
Bioref-integ Project
ABENGOA BIOENERGY
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2009 Annual Report
Our Activities
New Projects
Technical and economic proposal and analysis of
different CO2 into ethanol conversion process
configurations by catalytic processes.
Development of test-bench scale catalyst evaluation
laboratory.
Conceptual design and technical and economic
evaluation of the CO2 capture process by microalgae
production.
Development of methodology to analyze, pre-treat and
ferment algae biomass.
Development of laboratory procedures to transform
microalgae into biofuel.
ABENGOA BIOENERGY
LED project
LED recently awarded in the call for the 7th framework
program, currently in negotiation phase. The objective of the
“Lignocellulosic Ethanol Demonstration” project is to design,
build and operate a 50 million liter per year ethanol
production plant from lignocellulosic biomass. This project is
headed by Abengoa Bioenergy Nuevas Tecnologías and has
the participation of a further four partners.
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2009 Annual Report
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To ensure the environmental management system,
companies are certified under the ISO 4001:2004 standard,
maintaining an open and transparent communication with
local authorities.
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.
Health & Safety
Abengoa Bioenergy employees play an essential role in the
development of the business group and as such, employees’
health and safety are of paramount importance. Following
this, the OHSAS 18001, and AS/NZS4801:2001
management Systems have been implemented.
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.
Improvement Initiatives
Corporate Social Responsability Report
complying with GRI A+
Abengoa Bioenergy has strengthened its commitment to
social responsibility and human rights, through the
development and implementation of its sustainability
policies and expanding this involvement and the
involvement of its customers and suppliers for sustainable
global development. Therefore, in 2009 a Corporate Social
Responsibility Report was developed following GRI (Global
Reporting Initiative) version G3 standards, which obtained
the highest dgree of certification, A+. The followed
methodology has been defined in accordance with the
ISAE3000 regulation (International Standard for Assurance
Engagements).
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.
We want our stakeholders and other companies to know
the performance of Abengoa Bioenergy in 2008 and targets
for 2009. Information that can be obtained and expanded
on through the established communication channels and
more directly through the company website:
www.abengoabionergy.com.
Environment
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.
ABENGOA BIOENERGY
The company wants its stakeholders and the rest of the
society to acknowledge the performance and objectives for
the forthcoming years, complying with strict sustainability
and efficience standards. Therefore, this report
incorporates the impacts of Abengoa Bioenergy’s activities
in the communities where the company operates and in the
stakeholders, which reflect cualitative- and quantitatively
the company’s interaction with the community and the
enrironment, following the methodology developed by GRI.
Abengoa Bioenergy will also elaborate a Corporate Social
Responsibility Report which will also be externally audited,
as part of the commitment the company has acquired with
transparency and rigour.
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2009 Annual Report
Our Activities
Competitiveness Plan in Brazil
Efforts Towards Sustainability
Abengoa Bioenergia Brasil acquired the production activities
from the Dedini-gro group in 2007, which allow the
company to initiate trading activities in the brazilian market.
One of the measures adopted after the acquisition was the
activation of a Competitiveness Plan with the aim to
become a reference in the market. This plan, which began
in 2009, has these main objectives:
As a leader in the development of sustainable solutions for
transport, and according to the company’s Mission, Vision
and Values, Abengoa Bioenergy is making a huge effort to
find and develop more sustainable solutions for the
transport sector. Since its creation, the company has
focused its strategy on the development of technologies
that may contribute to Sustainable Development, including:
Production of biofuels from lignocellulosic biomass.
Development of alternative renewable electric energy
generation technologies.
Development of lignocellulosic biomass production
systems under sustainable schemes, avoiding
deforestation and the use of rich biodiversity areas.
Demonstration projects for hybrid production systems
to take the technology to commercial scale.
Improvement of the facilities and productive processes
life cycle, increasing CO2 emissions saving in the
transport sector.
1. Implementation of a Human Resources Development
Policy.
2. Professionalization of the structure.
3. Subcontracting of services.
4. Restructuring of relationships with partners and sugar
cane providers. 5. Standardization of procedures.
5. Reduction of costs.
6. To increase efficiency by adopting the best business
practices.
7. Investment in expansion and upgrading of the
industries of the existing plants.
8. Investment in the construction of two electric energy
cogeneration projects using bagasse at the existing
plants.
The main objective is to become a referent as world leader
in biofuels production, developing innovative solutions and
improving the biorefining technology, all of which should
be based on the respect to the environment, social
development and economic sustainability.
Control de costes
As a measure against the economical crisi started in 2008
and preventing possible finnacial risks, a rigurous expenses
control plan to avoid situations as ocurred in 2009 where
large companies from the competence have gone bankrupt.
Abengoa Bieonergy has been able to apply a strict expenses
control and reduction policy, as well as wage contention and
margins management, coverages and business risks,
prioritizing cashflow management, thus avoiding the effect
the economical and financial scenario have been causing in
companies and industry in all fields. Abengoa Bioenergy has
outcomed highly strengthened from 2009, sonsolidating its
main role as global leader.
ABENGOA BIOENERGY
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2009 Annual Report
Our Activities
Implementation and Adjustment of GHG
Emissions Control Systems
Abengoa Bioenergy advocates for the use of biofuels in the
transport sector, which may imply up to an 85% reduction
of GHG emissions, compared to fossil fuels. Therefore,
biofuels are clearly beneficial for the environment given
their lower level of GHG emissions.
In order to thoroughly assess the reduction of emissions,
improve products sustainability and meter all GHG
emissions associated to the company’s global activities,
pursuant to Abengoa’s strategy, an ambitious emissions
control plan has been implemented, related to each aspect
of the products and raw material employed and
manufactured throughout all the plants and offices in the
world.
Therefore, specific teams and leaders have been appointed
to coordinate and implement the adaptation of the
accounting and financial systems to this new requirement;
and important conciliation work is being done so that all
suppliers, with no exception, incorporate to their deliveries
a GHG emissions report associated to their products. This
report should not only include energy consumption of the
different sources used to manufacture the product, but
employed raw material, distance covered and means of
transport used from production to delivery.
ABENGOA BIOENERGY
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2009 Annual Report
Our Stakeholders
Our Stakehoders
Our Stakeholders
· Our Shareholders
· Our Employees
· Our Clients
· Our Suppliers
· Community
ABENGOA BIOENERGY
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2009 Annual Report
Our Stakeholders
Our Shareholders
Shares Structure
Abengoa Bioenergy was formed on 20 May 2002 with a
share capital represented by 1204 registered shares at a
nominal value of 50 Euros each: 1 share subscribed by
Sociedad Inversora en Energía y Medio Ambiente, S.A. and
1203 shares subscribed by Abengoa, S.A.
Abengoa Bioenergy, S.A.’s shareholding structure at
December 31, 2007, is as follows:
At December 31, 2001, the General Extraordinary
Shareholders’ Meeting decided on the second capital
increase by non-monetary contributions of €29,706
thousand, issuing 594,111 the same as the already existing
ones, with a nominal value of €50 each. Abengoa, S.A. does
not participate in such capital increase and Sociedad
Inversora en Energía y Medio Ambiente, S.A. participates
and fully subscribes the shares.
The company changed from Public Company to Limited
Liability Company through memorandum dated 18
November 2002.
Abengoa decided to group all investments related to
biofuels under Abengoa Bioenergy and the Extraordinary
General Shareholders' Meeting of 16 December 2002
resolved a capital increase through non-monetary
contributions for 119 756 thousand Euros issuing 2 395 121
new shares, equal to the already existing ones, with a
nominal value of 50 Euros each. Sociedad Inversora en
Energía y Medio Ambiente, S.A. does not participate in such
capital increase and Abengoa, S.A. fully participates and
fully subscribes the shareholding.
On January 1, 2004 the General Shareholders’ Meeting
unanimously decided to change the corporate form of the
company Abengoa Bioenergy S.L. to public corporation. The
company, through a deed of September 17, 2004 changes
from limited liability company to public corporation, then
receiving the following name: Abengoa Bioenergy, S.A.
Shareholders are regularly notified through the framework
of actions of Abengoa S.A. and through the information
guidelines established for this purpose.
The corporate website (http://www.abengoabioenergy.com),
in Spanish, English and Portuguese, is an excellent
communication instrument with all stakeholders, including
shareholders. Through constant updates, we seek to include
all relevant information, to keep shareholders and other
stakeholders informed at all times.
ABENGOA BIOENERGY
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2009 Annual Report
Our Stakeholders
Our Employees
Professional Development
One of the most important assets of the business group is
its employees. Therefore, the company has made great
efforts to ensure employee development, both
professionally and in a personally. To this aim, it has
implement ambitious training plans in accordance with the
implemented competence plan. The program put into place
at Abengoa Bioenergy for 2008 is structured in four
segments, depending on the nature of the presented
material and the desired result:
Corporate training, meaning: communicating
Abengoa’s corporate culture, its internal rules, its
strategy, its financial models, corporate identity, and
the values it represents.
General training, employed to attain professional
excellence through awareness of new working tools,
techniques, management topics, among other
curricula.
Language training, the international growth demands
the company to offer this training and ensure
employees are prepared to undertake international
current and future projects.
Occupational risk prevention training which involves,
not only safety professionals, but also all levels in the
organization, safety training is a priority within the
work place.
In 2009, at Abengoa Bioenergy, the company staff was
formed by 4283 employees, distributed in three
geographical areas where it operates, USA, Europe, and
Brazil.
2009 Average Staff
Europe
549
United States
411
Brazil
3323
Total
This year, the company has surpassed the established
objectives, producing a complete training activity that is
balanced in attention to the company’s strategic objectives.
4283
2009 Training
Attendants
Hours
Language
24
1119
Corporate
5957
16127
14157
37105
1678
36931
363
1285
Total
22179
92566
ABENGOA BIOENERGY
53
Health & Safety
General
Professional Practices
2009 Annual Report
Our Stakeholders
Code of Conduct
The latter includes courses that offer a high level of
qualification in prevention and which, though not
mandatory, are considered necessary due to the nature of
the company’s activity.
As an Abengoa subsidiary, at Abengoa Bioenergy abides by
the same code of conduct as its parent company (see
http://www.abengoa.com). This code’s principles are based
on:
Among them, the Fire Brigade course should be highlighted,
offering first and second intervention staff sufficient skills
and knowledge in case of emergency.
The highest standards of honor and good judgment of
employees, management and directors.
Full, just, precise, punctual and intelligible
communication in the periodic reports that Abengoa
Bioenergy has to present to the administration and its
Abengoa parent company.
Compliance with applicable laws, standards and
regulations.
Tackling actual or possible conflicts of interests.
Provide orientation so that employees, management
and directors notify Abengoa Bioenergy of such
conflicts.
The demand for maximum level of confidentiality and
just treatment inside and outside Abengoa Bioenergy.
The corporate culture and in the common management
systems.
Service vocation in the performance of our activities.
Involvement in the projects we develop.
Professional responsibility in our actions.
Quality assurance in actions, both internal and external.
Doing things with awareness, common sense, rigor,
order and responsibility.
Information confidentiality, exclusively for compliance
with the Abengoa Bioenergy business objectives.
As part of the skills development process, workers are
trained to help Occupational Health and Safety teams in
emergency situations, first aid, fire fighting, risk analysis and
prevention by teaching competent and conscious
professionals. The great challenge is to teach a large number
of workers with little training and high levels of illiteracy on
the idea that prevention is everyone's responsibility.
Abengoa Bioenergia Brasil is implementing an Integrated
Quality, Environmental and Occupational Health and Safety
Management System (ISO 9001, ISO 14001 and OHSAS
18001). The company aims at reducing, and eliminating if
possible, the number of accidents and their severity, and
develop continuous improvement actions on prevention by
implementing such system, together with the workers'
training process.
Acquired knowledge is systematically recycled to maintain
and strengthen this occupational health and safety
philosophy.
In addition, internal safety measures are transferred to all
the companies working in Abengoa's centers, pursuant to
Article 24 of the Occupational Health and Safety Act.
Occupational Health and Safety
Occupational health and safety is essential for the
development of activities. According to the company, in
addition to legal provisions pursuant to Article 19 of the
Occupational Health and Safety Act, the creation and
development of a culture and awareness on this matter is
crucial, and therefore a specific chapter on occupational
health and safety is included in the training plans, providing
for both general and specialized courses.
The first ones include Basic Occupational Health and Safety
for all people managers within productive centers and
general First Aid, aimed at obtaining applicable knowledge
on risk prevention both at legal and practical level with the
first one; and basic knowledge on how to act in case of an
accident with the second one.
ABENGOA BIOENERGY
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2009 Annual Report
Our Stakeholders
Our Clients
Clients List
Information Surveys
Cereals Europe
Agropal Sociedad Cooperativa, Odarpi Sociedad
Cooperativa, Leonesa Astur de Piensos, Grans del Llusanes.
The call to serve is of paramount importance to Abengoa
Bioenergy. Direct communication channels are, therefore,
set up between the technical and commercial departments
and the clients to establish a close relationship and, thus,
receive comments and suggestions they may consider
relevant.
DGS Europe
Arkady Feeds, Avigase, Cargill, Cefusa, Cobadú, Coren,
Covap, Maisadour, Nanta, Pascual de Aranda, Piensos
Unzúe, Sanders, Saprogal Sorgal.
In its desire to improve and build customer loyalty, Abengoa
Bioenergy has begun to conduct customer satisfaction
surveys to adjust as much as possible to the real needs of
these stakeholders. As a result, customers are highly
appraising the effort on continuous improvement of quality
perception level developed since the origins of the business
group. As a consequence of this response, the capacity to
serve urgent orders of ethanol has also been improved,
reaching such operating performance levels that enable the
production of ethanol with different technical specifications
within very short periods always observing delivery times.
Bioethanol Europe
BP Oil, Shell Trading, Total, Statoil, Exxon, Petrofina,
Lyondell, Neste, Conoco, Petronor, Repsol, Cepsa,
Agroetanol, Morgan Stanley, SCA, Auchan, Distrydin,
Siplec, Carfuel, Dyneff, T&D, Picoty, Esso France, BP France,
Agip
Bioethanol Brazil
Another highly valued point by customers is the products’
quality, derived from the strict controls applied to raw
material prior to its arrival to the plant, in terms of thorough
compliance of the required quality parameters pursuant to
current standards during process control, stored products,
and finally batches to be delivered. All the above, plus
serious observance of contracts, makes Abengoa Bioenergy
a synonym of thorough guarantee.
Petrobrás, Ipiranga, Shell, Esso, Chevron, Repsol and Ale, all
belonging to Sindicom in addition to several other regional
distributors of the so-called Emerging Groups. Hydrated
ethanol is sold though the company’s own distributor to
more than 300 service stations in the states of São Paulo
and Minas Gerais.
Sugar
Aspects such as the recent Change of Corporate Image in
Brazil, improvements in Customer Service, a strategic
training plan geared to company professionals development
and highly competitive prices (as ethanol producers and
distributors) are determining factors that enable the
company to attract an important number of customers in all
points of sale.
VHP: Sucden, Bunge and Glencore in exports and Ajinomoto
for the domestic market.
Crystal: Dulcini and Ragi Refrigerantes (Dolly).
Soy Bean
A vast number of cooperatives and intermediaries of high
quality soy been in the states of São Paulo, Minas Gerais,
Paraná, Mato Grosso do Sul, Mato Grosso and Goiás.
ABENGOA BIOENERGY
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2009 Annual Report
Our Stakeholders
Our Providers
Globalization
The procurement strategy is focused on the direct
integration of suppliers in developing operations by applying
their expertise and technology. The implementation of best
solutions proposed by suppliers minimizes risks and
optimizes costs and delivery terms.
All procurement is subject to globalization.
By contracting regular suppliers in the different production
centers, the company can incorporate the most developed
and standardized service offering corporate procedures and
balanced growth among the various production plants
concerned.
All the above is carried out by following five basic guidelines
that direct the relationship with suppliers and strengthen the
strategy:
These synergies facilitate the implementation of global
solutions translated into cost optimization both for
management and development of service and procurement.
Externalization
Leadership
Globalization
Local development
Integration
Local Development
In turn, the focus on development and involvement of local
suppliers guarantees the most basic needs can be met,
resulting in flexible consumption volumes and response
times, positively affecting commercial and industrial growth
of the geographical areas involved, hence ensuring a close
and social relationship.
Externalization
Maximum operations optimization is achieved by
outsourcing services identified as complementary to
production.
Integration
Outsourcing enables the company to focus on improving its
know-how on key activities, increasing core business return,
and implementing the most professional service through the
supplier’s direct involvement in daily operations.
The integration of suppliers’ improvement proposals favors
the continuous improvement of productivity and output.
Results-based pricing is an essential principle of commitment
with the business.
Services such as specialized labor in the various maintenance
and utilities areas, as well as supplies and implementation of
critical products are outsourced activities given the specific
training, technology and expertise needed.
Integration in Environmental Safety Policy, respect to Human
Rights and business ethics should be added to this
commitment.
Leadership
The continuous search and contracting of leading suppliers
in each industry is a guarantee of innovative improvement
solutions, with an important technological component to
maintain competitiveness and quality.
The supply of critical products and maintenance of essential
units falls on renowned suppliers of proven experience.
ABENGOA BIOENERGY
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2009 Annual Report
Our Stakeholders
financial world and the willingness to favor the presence of
the companies in capital markets and contribute with
permanent financial resources to guarantee the
implementation of biofuels expansion or development
projects in addition to financing specific projects
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:
As in previous years, conference participants once again
noted the significant growth (more than 30%) in the
demand for biofuels in the three major world markets (USA,
Brazil and the European Union). In the second half of 2008
this increase was accompanied by a slump in the price of
agricultural raw materials around the world, confirming the
belief that biofuels' influence on the increase in these prices
in 2007 and 2008 was minor.
Natural resources.
Controlling and reducing generated emissions and
waste.
Protecting the biodiversity of the areas where it
operates.
Over the three days of the conference, the participating
professionals debated the new stimulus regulations for
biofuels, with new and higher targets for obligatory
consumption, which have been approved and put into
action in the USA and the EU and that could be decisive in
the development of a world biofuels market. All of this
despite the general criticisms made in 2007 and the first half
of 2008, when biofuels were attributed with global
problems of deforestation and food shortages, as if these
issues were something new associated with the appearance
of biofuels.
The company optimizes the use of chemicals in process to
reduce consumption without affecting its output. For
example, the use of chemicals in processes is managed by
the continuous improvement Six Sigma tool to limit it to the
minimum essential level; or along these lines, water
consumption, a scarce resource, is managed through hydroefficiency committees to achieve “zero discharge”. As to
energy, processes have been optimized to reduce power
consumption and, therefore, minimize greenhouse effect
gas (GHG) emissions.
The emissions of all production centers are controlled to
minimize them as much as possible, observing the limits set
forth by current legislation in the areas of operation far
beyond their scope.
As a final result, and guaranteed by the ISO 14001
certification, the company counts on environmentallyfriendly facilities that protect the biodiversity of the areas
where it operates, always based on environmental impact
studies that ensure minimization of the potential impact of
production plants on the environment.
Conferences
The 8th World Biofuels Conference was held in May in
Seville, Spain, gathering more that 150 representatives from
biofuel producing companies, raw material manufactures, oil
operators, public and private R&D&I bodies and
environmental protection organizations for three days.
8ª World Biofuels Conferences
World Biofuels 2009 has evidenced the importance of
biofuels as one of the instruments to mitigate the serious
consequences of climate change generated, among others,
by the unrestricted use of fossil fuels in transport.
During the conferences several european enterprise
experiences were presented on the production of biofuels
by means of enzymatic hydrolisis (bioethanol); celullosic
biomass gasification (diesel, ethanol) and algae oil
gasification (biodiesel). Also it was made evident that once
These conferences have been useful to show the growing
interest the development of biofuels is generating in the
ABENGOA BIOENERGY
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2009 Annual Report
Our Stakeholders
succeeded the pilot plant phase, as in the US, the next step
was to approach the industrial viability of the production
process, by constructing larger plants.
Support in the organization of neighborhood
community parties.
Sponsorship to obtain youth and local sports teams
equipment and gear.
Improvement of service maintenance onsite plants.
This conference, which has been held for the last 8 years in
the Focus-Abengoa Foundation, is framed within the
activities developed by the Environmental and Sustainable
Development Think Tank created by Abengoa, through the
Foundation, to become a valid instrument for reflection and
action at the highest level promoting knowledge and public
awareness on these issues.
United States
A number of activities have been conducted in the United
States to promote the company’s good name and make the
society acknowledge it through different activities. These
efforts include contributions to civic and charity
organizations, involvement with local schools and
universities, participation in events, improvement of safety
and appearance of production plants and environmental
awareness.
Based on its influence on the threefold objective of
economic, social and environmental development defining
Sustainable Development, this Forum is focused on those
fields where Abengoa, given the purpose of its business
activity, can make relevant contributions in the
international, industrial and technological arena, or in any
other type of relationship
Some of the developed activities include:
Monetary donations to renowned organizations, such
as the American Cancer Society, the American Red
Cross, and the Salvation Army, among others.
Participation and promotion of civic organizations, such
as Chambers of Commerce, Boy Scouts and Girl
Scouts, youth sports teams, elderly associations, or
support to schools promoting company employees
involvement in these activities.
Organization of specific support activities, such as
“Adopt a Family”, involvement in the “S. G. Komen
Race for the Cure” and contributions to provide
dictionaries to local schools. Abengoa Bioenergy was
awarded the “Business of the Month” by the Roosevelt
County Chamber of Commerce.
Community Interaction
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.
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.
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:
Below are some of the significant projects launched during
this year:
Contribution to the organization of training courses.
Cooperation with universities.
Support to environmental awareness initiatives.
Endorsement to cultural associations, participation in
exhibitions and conferences.
Support to associations’ activities.
ABENGOA BIOENERGY
Assistance to employees on leave by delivering food
baskets.
Donation of sports uniforms and equipment to the
children and youth football school, promoting
employees’ donations to these activities.
58
2009 Annual Report
Our Stakeholders
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:
Donation of diapers to Elderly Associations in need in
the region.
Support to environmental awareness initiatives.
Donation of food and uniforms to low-income families’
aid associations through internal social responsibility
campaigns.
Improvement of plants’ internal and external areas
maintenance.
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.
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.
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2009 Annual Report
Board of Directors
Management Structure
Board of Directors
· Appointments and Remunerations Committee
· Audit Committee
· New Technologies Committee
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2009 Annual Report
Board of Directors
Board of Directors
Members of the Board
The current Board of Directors constituted in July 2007, is
formed by eleven members, ten Board Members, and one
Non-Board Member Secretary, which provide a diversified
composition that facilitates delegation, attendance and
agreement with minimal attendance. This guarantees a
multiple and plural presence in the Board of Directors.
The current board members are independent and do not
hold any executive post in the Abengoa Bioenergy
companies, with the exception of the Chairman, as
indicated above:
Members of the Board
President
Álvaro Fernández de Villaverde, Duque de San Carlos
Counselor
Charles Wellesley, Lord Douro
Counselor
Ricardo Martínez Rico
Counselor
Manuel Sánchez Ortega
Counselor
Armando Sánchez Falcón
Counselor
Carlos Sebastián Gascón
Counselor
Santiago Seage Medela
Counselor
Daniel Villalba Vila
Counselor
Luis Solana Madariaga
Counselor
Salvador Martos Barrionuevo
Secretary non-counselor
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2009 Annual Report
Board of Directors
Board Committees
Board Committees
Appointments and Remuneration Committee
Audit Committee
New Technologies Committee
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 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 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
The Board Committees shall be considered validly
constituted when the majority of the members are present.
Appointments and Remunerations
Committee
Appointments and Remunerations Committee
Charles Wellesley (President)
5. Reporting the appointments and resignations/dismissals
of the senior management that the chief executive
proposes to the board.
The duties and powers of the Audit Committee are as
follows:
6. Informing the Board on various issues.
1. Informing the Board of Directors on appointments, reelections, dismissals/resignations and remunerations of
the Board and of their posts, as well as the general
remuneration and incentives policy for them and for
the senior management.
7. Informing the Board of Directors of the remuneration
policy of the board members and senior management.
8. Informing the Board of Directors of the individual
remuneration of the board members and the approval
of the contracts the company signs with each board
member;
2. Previously reporting all the proposals that the Board of
Directors makes to the General Meeting for the
appointment or dismissal/resignation of the Board
members, even in the cases of co-option by the actual
Board of Directors.
9. Ensuring the remunerating policy established by the
company is observed.
3. Preparing an annual report on the activities of the
Appointments and Remunerations Committee.
10. Consulting with the company Chairman or chief
executive, especially regarding issues related to the
executive board members and senior management.
4. Assessing the skills, knowledge and experience
necessary in the Board, defining the skills and duties
necessary in the candidates to cover vacancies therein,
and evaluating the time and dedication necessary so
that they can perform their task well;
11. Analyzing the requests that any Board Member may
make to take into consideration for potential
candidates to cover Board Member vacancies, as well as
vacancies in the Company to cover with potential
candidates.
ABENGOA BIOENERGY
62
2009 Annual Report
Board of Directors
Audit Committee
Audit Committee
Ricardo Martínez Rico (President)
Álvaro Fernández de Villaverde
5. Supervising the internal audit services. The Committee
shall have full access to the internal audit, and shall
inform during the selection, designation, renewal and
removal process of its director and in setting their
remuneration, and should inform on the budget of this
department.
The duties and powers of the Audit Committee are as
follows:
1. Reporting the Annual Accounts, as well as the sixmonthly and quarterly financial statements, which
should be sent to the parent company, the other
shareholders, financial institutions, public or private
bodies, etc. stating the internal control systems, its
monitoring control and compliance through internal
auditing, as well as, when applicable, the accounting
criteria applied.
6. Knowing the financial information process and internal
control systems of the Company.
7. Being in contact with the external auditors to receive
information on those issues that may place their
independence at risk and any other matters related to
the accounts audit development process.
2. Informing the Board of any change in accounting
criteria, and the risks of the balance sheet and outside
it.
8. To call any Board Members it sees fit to attend
Committee meetings for the purpose of providing any
information the Audit Committee may require from
them.
3. Informing the General Shareholders’ Meeting on issues
the shareholders propose in it in issues within their
jurisdiction.
9. Preparing an annual account on the Audit Committee’s
Activities, which must be included in the management
report.
4. Proposing the appointment of external Accounts
Auditors to the Board of Directors for it to subject to
the General Shareholders’ Meeting.
Luis Solana Madariaga (President)
Ricardo Martínez Rico
The duties and powers of the New Technologies Committee
are as follows:
3. Informing and advising on new technologies
investment policy.
4. Preparing an annual report on the activities of the New
Technologies Committee and progress in this area.
1. Informing the Board of Directors on the status of new
biofuel technological developments.
2. Previously informing on all the proposals that the Board
of Directors makes to the General Meeting to adopt
new resolutions regarding applicable new technologies.
ABENGOA BIOENERGY
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2009 Annual Report
ABENGOA BIOENERGY
64
2009 Annual Report
Company
Address
Telephone Fax
16150 Main Circle Drive, Suite 300
Chesterfield, St. Louis, MO 63017
Pº de la Castellana, nº 31 - 3Plta.
28046 Madrid, España
+1 636 728 0508
+1 636 728 1148
+34 91 319 7070
+34 91 308 5242
Abengoa Bionergía, S.A.
Corporate
• President & Chief Executive Officer
• Chief Financial Officer
• Chief Technical Officer
• IT Corporate Director
Ignacio García Alvear
Francisco Antonio Morillo León
Juan José Lallave García
Ecocarburantes Españoles,S.A.
• President
• Chief Executive Officer
• Executive Vice President
• Plant Manager
Eduardo Sánchez-Almohalla Serrano Valle de Escombreras
Ctra. Nacional 343, Km.7,5
Antonio Vallespir de Gregorio
30350 Cartagena , España
David Galindo Cascales
+34 968 16 7708
+34 968 16 7070
Bioetanol Galicia, S.A.
• President
• Plant Manager
José B. Terceiro
Tomás Blanco Parra
+34 981 77 7570
+34 981 78 5131
Polígono Industrial Teixeiro
Ctra. Nacional 634, Km. 664,3
15310 Teixeiro-Curtis, La Coruña
España
Biocarburantes Castilla y León, S.A.
• President
Ginés de Mula González de Riancho Crta. de Encinas a Cantalapiedra,
Km. 5,2
37330 Babilafuente, Salamanca,
• Plant Manager
Gonzalo Curiel Fernández
+34 923 28 4163 +34 923 28 4143
Abengoa Bioenergía San Roque, S.A.
• Plant Manager
Juan Carlos Muñoz
Cortijo Santa Rosa s/n,
Ctra.Nacional 351
11360 San Roque, Cádiz, España
Abengoa Bioenergy France, S.A.
• Plant Manager
Rocade Sud d'Arance
+33 559 14 0990
Plateforme Induslacq, Porte d'Abidos
64300 Arance, Francia
Fabrice Orecchioni
Abengoa Bioenergy Netherlands B.V.
Francisco Morillo León
• Plant Manager
Rob Groeliker
Abengoa Bioenergy UK
• Plant Manager
Merwedeweg 10
Europoort, Róterdam 3198 LH,
Holanda
Francisco Morillo León
Darrell Hampshire
Abengoa Bioenergy Trading Europe
Pedro Carrillo Donaire
Ecoagrícola, S.A.
• President
ABENGOA BIOENERGY
+34 91 319 7070 +34 91 308 5242
+34 91 319 7070
+34 91 308 5242
Weena 294, Weena 200 Building,
Tower B, Floor 12th
+31 10 271 0111
+31 10 271 0119
Crta. del Copero, Campus Palmas
41014 Sevilla, España
65
+33 559 14 0991
Pº de la Castellana, nº 31 - 3Plta.
28046 Madrid, España
Antonio Navarro Velasco
Crta. del Copero, Campus Palmas
41014 Sevilla, España
Ginés de Mula González de Riancho
Abengoa Bioenergía Nuevas Tecnologías, S.A.
Gerson Santos-León
• Program Director
Ricardo Arjona Antolín
+34 91 354 2712 +34 95 669 9122
+34 95 493 7000 +34 95 493 7012
+34 95 493 7000 +34 95 493 7012
2009 Annual Report
Company
Address
Telephone Fax
Estados Unidos
+1 636 728 0508
+1 636 728 1148
Tim Frasher
523 East Union Ave
Colwich, KS 67030, Estados Unidos
+1 316 796 1234
+1 316 796 1523
• Portales Operations Manager
Scott Johnson
1827 Industrial Dr.
Portales, NM 88130, Estados Unidos
+1 505 356 3555
+1 505 539 1060
• York Plant Manager
Mitch Stuhr
1414 Road O
York, NE 68467, Estados Unidos
+1 402 362 2285
+1 402 362 7041
35955 Navaho Rd.
Ravenna, NE 68869,
Estados Unidos
+1 636 728 0508
+1 636 728 1148
Abengoa Bioenergy Corporation
• Institutional Relationships &
Governmental Affairs
Executive Vice President
• General Counsel
• Executive Vice President &
Chief Operations Officer
• Colwich Plant Manager
Abengoa Bioenergy Nebraska
• Plant Manager
Abengoa Bioenergy Indiana
• Plant Manager
Abengoa Bioenergy Illinois
• Interim Plant Manager
Christopher Standlee
Jeff Jones
Adam Hass
• Institutional Relations &
Business Director
• Economical & Financial Director
• Commercial Director
• Chief Operation Officer &
Agro- Industrial Director
395 Bissell St.
Madison, IL 63060, Estados Unidos
+1 618 451 8617 +1 618 451 8618
Mike Tveit
Estados Unidos
+1 636 728 0508
+1 636 728 1148
Estados Unidos
+1 636 728 0508
+1 636 728 1148
Estados Unidos
+1 636 728 0508
+1 636 728 1148
Joaquín Alarcón de la Lastra
Romero
Renato Meirelles
Rua Funchal, 418 - 36° andar , Vila
São Paulo - S.P. CEP 04551-060,
Brasil
+55 11 2111 6500 +55 11 2111 6512
Hernán Tálamo
Alberto Carmona Bosch
Juan Taín Varela
Fazenda São Luiz
13630-970 Pirassununga-SP, Brasil
+55 19 3565 5555 +55 19 3565 5502
Brian Burke
Abengoa Bioenergy New Technologies
• President & Chief Executive Officer Javier Salgado Leirado
Gerson Santos-León
Abengoa Bioenergia Brasil
+1 812 985 9982 +1 812 985 9983
Darrell Sanford
Abengoa Bioenergy Engineering & Construction
• President & Chief Executive Officer Javier Salgado Leirado
Abengoa Bioenergy Trading US
8999 West Franklin Rd.
Mount Vernon, IN 47620,
Estados Unidos
www.abengoabioenergy.com
abengoabioenergy@abengoa.com
ABENGOA BIOENERGY
66
2009 Annual Report

abengoa bioenergy - Abengoa Bioenergía

Transcription

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