ABENGOA BIOENERGY - Abengoa Bioenergía

Transcription

ABENGOA BIOENERGY
The
global
biotech
ethanol
company
2012 Annual Report
Activities report
2012 Annual Report
1
ABENGOA BIOENERGY
Index
Letter from the CEO ......................................................................................................................................................... 2
Sustainability .................................................................................................................................................................... 5
Mission ....................................................................................................................................................................... 6
Vision .......................................................................................................................................................................... 6
Values ......................................................................................................................................................................... 6
Sustainable development policy .................................................................................................................................. 7
Our business ..................................................................................................................................................................... 8
Our business ............................................................................................................................................................... 9
Historic ..................................................................................................................................................................... 11
Global presence ........................................................................................................................................................ 12
Production plants ...................................................................................................................................................... 13
Key figures ................................................................................................................................................................ 13
Our products ................................................................................................................................................................... 15
Bioethanol ................................................................................................................................................................ 17
Biodiesel ................................................................................................................................................................... 18
DGS .......................................................................................................................................................................... 19
Sugar ........................................................................................................................................................................ 19
Electricity .................................................................................................................................................................. 20
Carbon dioxide, CO2 ................................................................................................................................................. 20
New tecnologies ....................................................................................................................................................... 20
Our activities ................................................................................................................................................................... 21
Introductión .............................................................................................................................................................. 23
Main achievements ................................................................................................................................................... 28
Europe production .................................................................................................................................................... 30
Production plants in Europe ...................................................................................................................................... 37
Production in United States ....................................................................................................................................... 40
Legislative advances in United States ......................................................................................................................... 44
Production plants in United States ............................................................................................................................. 48
Production in Brazil ................................................................................................................................................... 51
Production plants in Brazil ......................................................................................................................................... 54
Trading, Logistics, and Raw Materials Origination ..................................................................................................... 55
Trading Europe ......................................................................................................................................................... 56
Trading United States ................................................................................................................................................ 58
Trading Brasil ............................................................................................................................................................ 59
New technologies ..................................................................................................................................................... 62
Current projects ........................................................................................................................................................ 64
Guaranty of activities ................................................................................................................................................ 76
Our stakeholders ............................................................................................................................................................ 80
Our shareholders ....................................................................................................................................................... 81
Our employees .......................................................................................................................................................... 81
Our costumers .......................................................................................................................................................... 84
Costumers list ........................................................................................................................................................... 85
Conferences .............................................................................................................................................................. 89
Interaction with the community ................................................................................................................................ 91
Corporate governance ................................................................................................................................................... 93
Board of directors ..................................................................................................................................................... 94
Board committees ..................................................................................................................................................... 95
Management structure .................................................................................................................................................. 99
2012 Annual Report
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ABENGOA BIOENERGY
Letter from the CEO
Letter from the CEO
2012 Annual Report
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ABENGOA BIOENERGY
Letter from the CEO
Letter from the CEO
We have been one of the global biofuel leaders for the past several years. We have built plants when rivals went out of
business. We have increased our technology investment when others folded. We have entered new geographies when
others downsized.
But the market conditions have changed. Market instability has affected margins across the board and the ability to
achieve consistent results has been affected. The record drought affected very negatively the grain market and created a
challenging year for ethanol producers. Inventory levels remained high while gasoline demand continued to disappoint.
More importantly, the market has made companies reconsider their modus operandi.
Amid this difficult environment, Abengoa Bioenergy is embracing the challenge. Market conditions have been very
challenging which paradoxically has been beneficial for our business strategy. The reason is that it expedited the process
that has already begun for Abengoa Bioenergy: the transformation from a global biofuel leader to a biotech company
that would go beyond biofuels. More importantly it signaled the need for a new business model which will reduce
market dependency and bring more stability and consistency to our business.
But we already knew the challenge was coming; our vision for the future has not changed. What is also the same is our
core competency remains our focus on technology. What is different is how we are going to get there, how we will
change the way we operate today. In the process, we need to maintain our current time-to-market leading position in
technology, which will take a lot of effort and resources.
We continue to seek solutions based on technology to boost our profits in the short term and build the base for future
growth. Given the current market conditions, over the next couple of years, we are exploring options to adapt 1G assets
to have flexibility in a low margin environment. Our priorities focus on W2B and biobutanol as key start projects Abengoa
is willing to invest in to boost our margins in the short run. Thus, we will leverage our 1G assets in terms of already
acquired and new feedstock sourcing, technology, production, logistics as well as marketing and trading. At the same
time, we would tap into new markets with new products and diversify our revenue stream while exploring new
technology processes and new areas of feedstock that would give us more both flexibility and stability.
The construction start of our first biomass-to-ethanol commercial plant at Hugoton has been a milestone in our
development as the project will showcase our ability to bring technology to the market in a commercial scale size plant at
an economically viable way. We are making tremendous progress in the construction of the plant and we expect the
project to be a reality in 2013.
On a broader scale, we are working towards providing a one-stop biotech solution to our customers. New 2G projects
and bioproducts also remain priorities for us over the longer term, following the implementation of the efficiency plans
which will streamline operations and makes us leaner as an organization. The idea is to have these projects offered to
third parties which would create a brand new revenue source while capitalizing on the progress we would have achieved
by the time we open Hugoton.
The new business model that is emerging for Abengoa Bioenergy will reposition the company in the direction of
concession-type growth model. We will leverage technology development, focus on less-commodity-based margin while
also build high technological barriers. On a macro level, it would leverage Abengoa’s knowhow and network while
reducing equity requirements.
Allowing for one-stop solutions through the value chain, our approach will mitigate market risk, will provide access to
third-party capital and allow for asset rotation, all key elements of the concession-type infrastructure. By combining
engineering, procurement, construction, finance, equity and O&M, the model will provide concession model revenues
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ABENGOA BIOENERGY
Letter from the CEO
that include technology fees, O&M service fees, etc. in addition to induced business for Abengoa. For Abengoa
Bioenergy, the model will allow the use of technology for agricultural biomass and bagasse conversion as well as
technology applied for solid municipal waste.
The plan is no doubt ambitious but with great potential benefits that will change the way we do business. The model will
also allow us to think differently about our business and how we should mitigate the risk elements that affect our
operations and profitability.
Over the next 5-10 years, Abengoa Bioenergy should be able to produce a multitude of fuels and bioproducts from a
variety of feedstock including waste, cereal, cane, energy crops and to provide one-stop biotech solutions to third parties.
The company will continue to diversify its revenue stream and continue to secure feedstock in an economic and
operationally efficient manner to increase its profits while being able to access multiple markets. Hopefully, the company
would be a pioneering leader in W2B and biobutanol production as well as planned the construction of new 2G facilities
after Hugoton and bioproduct production.
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ABENGOA BIOENERGY
Letter from the CEO
Sustainability
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ABENGOA BIOENERGY
Sustainability
Mission
Contribute to the sustainable development of the fuel market for transportation and of chemical bioproducts by
using renewable raw materials and green technologies that help to reduce carbon emissions and the
environmental impact.
Develop innovative technological solutions through continuous investment in R&D that provide more efficient
production processes, raw material diversification and new product manufacture.
Create shareholder value, focusing its activities on creating profitable and sustainable technological solutions.
Contribute to the personal and professional development of its employees through ongoing training and by
establishing and monitoring customized development targets and plans.
.
Vision
Become one of the leading worldwide companies in the production and marketing of biofuels and chemical
bioproducts made from renewable raw materials.
Be acknowledged as a leading global company in research and development and be well-known thanks to its
technological innovation in converting biomass into fermentable sugars and then into bioethanol, biodiesel,
kerosene for aviation as well as chemical bioproducts and in adapting first generation assets to diversify the
product portfolio.
Provide an optimal work environment in order to attract the best possible employees and maintain their
excellence.
Attract the attention of and be respected by the financial community as a result of sustained growth and
technological innovation.
Abengoa Bioenergy vessel for the export of bioethanol
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ABENGOA BIOENERGY
Sustainability
Values
Honesty in our relationship with clients, shareholders, partners and colleagues.
Respect for individuals under all circumstances.
Prioritization of teamwork using corporate tools to encourage information exchange.
Promotion of a flexible, mental attitude in order to adapt to continuous change.
Protection, defense and improvement of the environment.
Sustainable development policy
At Abengoa Bioenergy we have as a main objective to become recognized as world leaders in the production of biofuels
and in the development of innovative technology solutions that contribute to the sustainability of the transportation
sector and in the manufacturing of biochemical products.
This objective can only be achieved if the development of all our activities is closely tied to the basic pillars of
sustainability:
Respect for the environment.
Social development.
Economic benefit.
To comply with the aforementioned principles at Abengoa Bioenergía we define the following sustainability actions in
our mission, vision and values, which meet and direct all of our activities:
Value creation.
Certification of raw materials.
Reduction of greenhouse gas emissions.
Personal and professional staff development.
Efficient use of natural resources.
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Our business
Our business
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Our business
Our business
Abengoa Bioenergy carries out industrial production activities in the energy sector. It develops biofuels for transportation,
as well as bioethanol and biodiesel among others, plus chemical bioproducts which use biomass (cereals, sugar cane,
cellulose biomass, oleaginous seeds, etc.) as raw material. Biofuels are used in the production of gasoline additives (ETBE)
as well as in direct mixtures with gasoline or diesel oil. Abengoa Bioenergy is also developing new biofuels (kerosene for
aviation and biodiesel from sugar). The chemical bioproducts will be identical to those produced at present by the
petrochemical industry in terms of functionality but, in turn, they will be more sustainable and will focus on immediate
replacement within the already existing markets.
As sources of renewable energy, biofuels and chemical bioproducts reduce CO 2 emissions and enhance the safety and
diversification of the energy supply, thus decreasing the dependence on fossil fuels used in the automotive, aviation and
petrochemical industries and improving compliance with the Kyoto Protocol.
Current market situation
The new regulations of United States and the European Union require the biofuel industry to comply with strict
sustainability criteria.
Within this context, markets are focusing on improving the existing first-generation biofuels and their management, as
well as on developing the new generations of biofuels.
These regulations refer both to the reduction of greenhouse gas (GHG) emissions in the biofuel life cycle and to the
certification of the origin of the raw material used in its production.
Abengoa Bioenergy of Nebraska plant, Ravenna
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Our business
In order to address the legal demands, valid for the first and second-generation biofuels, Abengoa Bioenergy has
implemented accountability and verification systems for greenhouse gas (GHG) emissions and raw material certification
systems, which allow differentiating between biofuels that are sustainable and those that must be rejected, in the battle
against climate change.
In terms of second-generation, the development of the enzymatic hydrolysis technology allows converting agricultural
waste, wood waste and other potential energy crops into ethanol, without affecting the ecological balance or the food
chain. At the same time, second-generation biofuels have a strong potential for reducing emissions compared to the
fossil fuels that they replace.
Such technology represents the most state-of-the-art and feasible technological solution among all of those being
currently investigated.
Biomass crop production
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Our business
Historic
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ABENGOA BIOENERGY
Our business
Global presence
The global biotech ethanol company
The global biotech ethanol company
Abengoa Bioenergy is the leading European biofuel producer (with a production capacity of 396 Mgal) and one of the
main producers in United States (380 Mgal) and Brazil (62 Mgal), with a total installed production capacity of 839 Mgal
distributed among 14 plants, in five different countries of three continents. Furthermore, it is constructing the world’s
first second-generation (2G ) commercial plant. Abengoa Bioenergy Biomass of Kansas will have the capacity to produce
25 Mgal per year of bioethanol as from corn stover, wheat straw, and switch grass.
In 2012, Abengoa Bioenergy has started a thorough process to create value for its shareholders. The company has
identified opportunities that will allow the diversification of bioproducts and the production of higher value-added
biofuels and compounds, thus generating greater environmental benefits.
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Our business
Design production capacity
Production plants
Ecocarburantes Españoles
Bioethanol:
DGS:
Electricity:
Bioetanol Galicia
Bioethanol:
DGS:
Electricity:
Biocarburantes de Castilla y León
Bioethanol:
DGS:
Electricity:
Abengoa Bioenergía San Roque
Biodiesel:
Gliceryne:
Abengoa Bioenergy France
Bioethanol:
DGS:
Abengoa Bioenergy Netherlands
Bioethanol:
DGS:
Electricity:
Abengoa Bioenergy Corporation Colwich
Bioethanol:
DGS:
Abengoa Bioenergy Corporation Portales
Bioethanol:
DGS:
Abengoa Bioenergy Corporation York
Bioethanol:
DGS:
Abengoa Bioenergy of Nebraska
Bioethanol:
DGS:
Abengoa Bioenergy of Illinois
Bioethanol:
DGS:
Abengoa Bioenergy of Indiana
Bioethanol:
DGS:
Abengoa Bioenergia São Luiz
Bioethanol:
Sugar:
Electricity:
Abengoa Bioenergia São João
Bioethanol:
Sugar:
Electricity:
Abengoa Bioenergy
Bioethanol:
Biodiesel:
DGS:
Sugar:
Gliceryne:
Electricity:
40 Mgal
110,000 t
204,000 MWh
50 Mgal
130,000 t
204,000 MWh
55 Mgal
120,000 t
140,000 MWh
60 Mgal
18,500 t
65 Mgal
145,000 t
125 Mgal
360,000 t
400,000 MWh
25 Mgal
70,000 t
30 Mgal
75,000 t
55 Mgal
145,000 t
90 Mgal
230,000 t
90 Mgal
230,000 t
90 Mgal
230,000 t
24 Mgal
285,000 t
172,000 MWh
38 Mgal
360,000 t
201,500 MWh
782
60
1,845,000
645,000
18,500
1,316,500
Mgal
Mgal
t
t
t
MWh
Note: approximate figures. Abengoa Bioenergy New Technologies pilot plants not included.
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ABENGOA BIOENERGY
Our business
Key figures
Income
Abengoa Bioenergy´s income has been practically stable in
relation to the previous year, overcoming operational
difficulties.
(1M = 1.000.000)
EBITDA
Thanks to the diversification of products and raw materials as well
as the proper management of our productive assets, Abengoa
Bioenergy has managed to obtain an EBITDA over 91 M€ despite
of the adverse economic and market conditions.
Technological investment
Abengoa Bioenergy strongly advances in the
commercialization of cellulosic ethanol technology and
continues to bet on the development of new
technologies, along with the U.S. Department of Energy,
the Spanish Ministry of Industry and the European Union
Framework Program. In 2012, the investment registers an
outstanding increase with the ongoing of the construction
of the second generation bioethanol plant in Hugoton.
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Our business
GHG Emissions reduction
The use of over 665.5 Mgal of biofuels traded by Abengoa
Bioenergy reduces CO2-equivalent emissions by
approximately 2.89 Mt, equivalent to the annual emissions
of approximately 786,000 vehicles
(1 Mgal = 1 million gallons)
(1 Mt = 1 million tons)
Sources:
1.Well-To-Wheels Analysis of future automotive fuels and powertrains in the
European context
2. European Parliament and Commission directive relative to the promotion of
the use of energy from renewable sources.
Production of biofuels
Abengoa Bioenergy currently has fourteen bioethanol
and biodiesel production plants, distributed between
Europe (Spain, France and Holland), United States and
Brazil. Throughout 2012, the production of biofuels of
the company reached 665.6 Mgal.
(1 Mgal/y = 1 million gallons per year)
(1 ML/y = 1 million liters per year)
Production of electricity
Some of the company’s bioethanol production facilities
have cogeneration systems, which with a good use of
sugar cane bagasse and other fuel, generate the steam
and electricity necessary to operate the bioethanol plants.
The production of electrical energy throughout the year
2012 has been of 1,548 GWh approximately.
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Our business
Our products
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Our products
Bioethanol
Today, we can state that Abengoa Bioenergy is a worldwide reference in the development of first-generation bioethanol
and production of bioethanol as from biomass (2G). This year we have worked on a greater development of techniques
and mechanisms for the production of second-generation bioethanol, that is, production of bioethanol as from
agricultural waste, wood waste and other potential energy crops, without affecting the ecological balance or the food
chain..
First-generation bioethanol
Bioethanol is obtained on an industrial scale from cereal fermentation, prior enzyme hydrolysis and after a distillation
process which eliminates volatile impurities generated during the process, followed by another dehydration process which
helps eliminate excess water from distillation. Under these conditions, bioethanol is directly mixed with petrol in an 85%
proportion (e85) and becomes a renewable substitute for petrol.
Abengoa Bioenergy Brazil obtains bioethanol from sugar cane juice fermentation collected after sugar cane grinding and
subsequent distillation. Bagasse, the fuel of the power generation system, is separated during grinding; and vinasse, used
as fertilizer in sugar cane plantations, is separated during fermentation. Distilled bioethanol is the fuel used in "flex"
engines, which run on both gas and bioethanol, or any blend of both.
Second-generation bioethanol
Compared to the traditional process to produce ethanol as from cereals, where the starch content is used, the production
of ethanol as from agricultural waste requires a complex and intensive process to release the polymeric sugar structures
present in the cellulose and hemicellulose, which account for 30% to 50% and from 20% to 35% of the plant material,
respectively. The enzymatic hydrolysis process fractions the biomass into its most important components and hydrolyses
the carbohydrates into simple sugars for the fermentation of the ethanol.
Abengoa Bioenergy of Netherlands plant
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Our products
Its main advantages compared to fossil fuels are the following:
Renewable origin.
Biodegradable.
Higher dependency on oil imports; its use contributes to increase energy autonomy and diversification.
Cleaner fuel in polluting emissions such as sulphur oxide and particles.
Contribution to local economies growth and income distribution, generating jobs in rural areas.
Reduction of GHG emissions that overheat the surface of the earth and accelerate climate change.
Easy to obtain and store.
The bioethanol supplied by Abengoa Bioenergy to its clients in Europe meets the strict sustainability standards required
under European Directives thanks to implementation in the supply chain of its own Voluntary Certification System,
already approved by the EU Commission, called RBSA, or by complying with the specific requirements of some members
states, such as Germany under BioOrdinance certification.
e85
e85 is a biofuel produced by combining 85 % bioethanol with 15 % gasoline.
The main advantage of e85 is its bioethanol content: the high percentage gives the fuel a higher-octane grade and better
engine performance. This partially compensates for the lower LHV, reducing consumption differences. Bioethanol and
gasoline can also be mixed to any proportion, and mixed fuels are legal in Spain, which makes fuel logistics extremely
simple compared to other alternative means of energy for the automobile industry. Furthermore, the high bioethanol
content (renewable) appreciably reduces fossil fuel consumption and significantly contributes to reducing greenhouse gas
emissions and reducing energy dependence.
The fact that e85 is different from gasoline means that a car designed to run on gasoline cannot use e85; vehicles
designed specifically for this biofuel must therefore be used. These technologies are marketed under the name FFV. Most
manufacturers in Brazil (Fiat, Ford, Volkswagen Peugeot, Renault, etc.) provide FFV technologies (Flexible Fuel Vehicles,
FFVs capable of running on any mixture of gasoline and ethanol up to 85 %) in their different models, as do most US
manufacturers
Biodiesel
Biodiesel is a renewable biofuel formed by long-chain fatty acid methyl or ethyl esters. If the esters that compose the
biodiesel are methylic, they are called FAME (Fatty acid methyl ester). It is obtained through the chemical reaction of
methanol (or bioethanol) with vegetable oils (rape, sunflower, soy, palm). It does not contain sulfur and, compared to oilderived diesel, greenhouse gas emissions are reduced (including CO2), as well as carbon monoxide (CO) emissions and
emissions of particles and other polluting products.
Advantages:
It is a cleaner source of fuel, renewable and for household use.
Reduces oil dependency
It can be used in all diesel engine vehicles, without requiring conversions, adjustments or special regulations in
the vehicle engine.
Easy to produce and store.
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Our products
It emits 40-80 % less greenhouse gases than fossil fuels.
It increases engine lubrication and the flash point, thus reducing the danger of explosions due to gas emissions.
It is biodegradable and non-toxic
Improves air quality in urban areas.
Does not pollute water.
Reduces waste production.
Biodiesel production creates new opportunities for sustainable rural development within the framework of a more
market-oriented farming policy, since it promotes the development of energy crops and the creation of agribusiness,
helping maintain employment and income levels in rural areas.
DGS
DGS or Distillers Grains with Solubles is the co-product resulting from obtaining bioethanol by converting the starch from
cereals through fermentation into bioethanol and its subsequent extraction by distillation.
This co-product is a source of vegetable protein, energy, fiber and vitamins, and is used as animal feed. Aware of the
implications this entails, DGS undergoes strict quality controls that guarantee both its nutritional properties and those
arising from enforcing current food safety legislation. As a consequence, Bureau Veritas certified DGS against an internal
standard, covering all food quality and safety requirements in force in Europe, and work is also being performed to
obtain a European specification for the product.
DGS (distillers grains with solubles
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Our products
Sugar
Abengoa Bioenergia Brasil obtains sugar from sugar cane grinding. The liquid is separated from bagasse during grinding.
This sugar cane juice undergoes necessary filtration and chemical processes to neutralize its pH. The product in its solid
state (crystal sugar) is obtained through distillation and subsequent centrifugation.
The crystal sugar production of Abengoa Bioenergía Brasil is allocated to exportation and sale in the domestic market.
Electricity
The configuration of some process plants includes cogeneration units that make them self-sufficient in terms of electricity
and allows them to export any surplus.
This is the case of the plants located in Spain. Electricity is generated through a natural gas turbine. In the Spanish case,
this electricity marginally replaces the production of electricity in coal and fuel plants. Since cogeneration systems also
have a thermal use of the turbine gases either for steam production and / or drying of the DGS, the energetic
performance altogether is much higher than if the two processes were implemented separately. A similar situation occurs
at the new facilities in Holland.
Likewise, in Abengoa Bioenergy Brazil, electricity and steam are generated as from the combustion of bagasse obtained
after the sugar cane grinding process.
Carbon dioxide, CO2
CO2 is a product of cereal fermentation. Currently, CO2 is supplied to gas companies for its use in industry or
greenhouses.
In the USA, CO2 is captured from the process in the facilities of York, Nebraska, and Colwich, Kansas, and it is sold to
drinks and frozen food companies. Besides, in USA, Abengoa Bioenery forms part of the PCOR (Plains CO2 Reduction),
an organization led by the University of North Dakota, devoted to searching and developing solutions for CO2
sequestration on an industrial scale. The plant in Holland supplies the CO2 production to greenhouses.
New tecnologies
Abengoa Bioenergía has the aim to develop innovative technological solutions through ongoing investment in R&D,
seeking more efficient production processes and animal feed co-products, unique and with high value to be recognized
as world leaders in the production of biofuels and the development of innovative technological solutions that contribute
to sustainability of the transport sector and in manufacturing biochemical products.
Therefore, our R&D activities are included in technological lines that cover the fundamental aspects to achieve the
development of new ways of producing biofuels and bioproducts, for which purpose we have teams of engineers and
technologists highly specialized in process development and biochemistry with the capacity to improve enzyme producing
organisms and optimizing fermentation processes.
Abengoa Bioenergy New Technologies, the company through which Abengoa Bioenergía manages its R&D activities, has
a series of technologies on which it focuses all its effort and which give rise to products in different areas that can be
used by the company or licensed to third parties: enzymatic hydrolysis, catalysis, enzymes, bioproductos, algae.
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Our products
Enzymatic test inlaboratory
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Our products
Our activities
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Our activities
Introductión
Abengoa Bioenergy is a benchmark company in the development of new technologies geared towards the production of
biofuels,biochemical products and the sustainability of raw materials, channeling to such end a tremendous amount of
resources into research. The presence of a trading division means that the company is also a service provider capable of
offering global solutions, with impressive capacity for marketing and managing commodities, reliably backed by its global
production and raw material procurement capacities and highly efficient operations ‟ cornerstones that afford reliability
and critical mass, which are key to optimum business development.
The combination of international trading and cellulosic bioethanol technology capacities of Abengoa Bioenergía, along
with the agricultural, productive and local trading capacities gives rise to very important synergies that will make it
possible to achieve significant growths in the bioethanol global market and have the technology that will enable
obtaining lower costs per liter of ethanol.
Abengoa Bioenergy contributes to sustainable development by marketing fuel compounds obtained from renewable
sources (biofuels) through the use of environmentally-friendly technologies that help bring about a net reduction in
polluting emissions, for use in both public transportation and private vehicles.
The company develops innovative technological solutions through continuous R&D investment. These solutions are put
into practice in production processes, allowing the company to enjoy the same production costs as for conventional fossil
fuels, while affording our DGS coproduct a distinct competitive edge.
Abengoa Bioenergy honors its commitment to creating value for shareholders and contributes to the personal and
professional development of its employees through continuous training and by setting up and overseeing individualized
plans.
Abengoa Bioenergy creates new opportunities for sustainable rural development by providing incentives for energy crops
and the creation of farming industries, thus helping to maintain employment and income levels in rural areas.
Bioethanol and biodiesel are renewable and clean energy sources which, for some time now, have proved to be a reliable
and effective replacement for gasoline and diesel fuel in vehicle engines, while also helping to diversify and improve the
security of the energy supply. Their use, either in a pure state or blended with fossil fuels, reduces CO2 emissions, slows
down climate change, and reduces the emission of polluting agents into the environment.The business unit covers the
management of the following companies:
C
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Our activities
The business unit covers the management of the following companies:
Europe
Biocarburantes de Castilla y León, S.A.
Bioetanol Galicia, S.A.
Bioetanol Galicia Novas Tecnoloxias, S.A.
Ecoagrícola, S.A.
Ecocarburantes Españoles, S.A.
Abengoa Bioenergía, S.A.
Abengoa Bioenergía Biodiésel S.A.
Abengoa Bioenergía Inversiones, S.A.
Abengoa Bioenergía Nuevas Tecnologías, S.A.
Abengoa Bioenergía San Roque, S.A.
Abengoa Bioenergy France, S.A.
Abengoa Bioenergy Germany GmbH.
Abengoa Bioenergy Hannover GmbH.
Abengoa Bioenergy Netherlands, B.V.
Abengoa Bioenergy Trading Europe, B.V.
Abengoa Bioenergy UK Limited.
Asa Bioenergy Holding, AG.
SAS Abengoa Bioenergía Biomasse France.
United States
Abengoa Bioenergy Biomass of Kansas, LLC.
Abengoa Bioenergy Corporation.
Abengoa Bioenergy Engineering & Construction, LLC.
Abengoa Bioenergy Funding.
Abengoa Bioenergy Holdco, Inc.
Abengoa Bioenergy Hybrid of Kansas, LLC.
Abengoa Bioenergy Investments , 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.
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Our activities
Brazil
Abengoa Bioenergia Agroindustria Ltda.
Abengoa Bioenergia Agroindustria Trading US Inc.
Abengoa Bioenergia Brasil.
Abengoa Bioenergía Inovaçoes Ltda.
Abengoa Bioenergia Santa Fe Ltda.
Abengoa Bioenergia Trading Brasil Ltda.
The company’s activities can be grouped in 6 major areas:
Grain Procurement
Bioethanol Origination
Production
Bioethanol, DGS, and sugar Trading
Cogeneration
New Technologies
Grain procurement
A key element in the good results of the activities developed by the Bioenergy business group is the acquisition of cereal
grain as raw material.
Currently, the most important grain cereal for the production of bioethanol in Abengoa Bioenergy’s plants are wheat,
barley, corn and sorghum, not only for the alcohol yield, but also for their great proteic proportion, highly valued in the
feedstock sector (DGS). As for biodiesel production, the most used oils are soy and palm.
Throughout its brief history, Abengoa Bioenergy has managed to acquire great experience, both in important purchases
of grain in the market, and in the making of contracts directly with farmers, thus ensuring that the group’s plants have
the amount of cereals they need. Similarly, the company’s experts have great knowledge of the applicable regulations to
operate in the European Union and within the American Government.
In Abengoa Bioenergy Brazil the company grows sugarcane while maintaining sustainable rural development methods,
biodiversity, and regional economic growth. Through the subsidiary company Abengoa Bioenergy Agricola, production
plants supply is assured, both establishing contracts with land owners, carrying out the necessary tasks for a combined
use of the land, and with farmers, providing the necessary resources and advice for best performance.
Abengoa Bioenergía has developed internal capabilities that have also allowed it to diversify the procurement of raw
material for its 2G plant in Hugoton. In this case, the plant will obtain agricultural waste that currently has no value for
the farmer and from other energy crops in marginal areas which up to now have been abandoned.
Abengoa Bioenergía has developed internal capabilities that have also allowed it to diversify the procurement of raw
material for its 2G plant in Hugoton. In this case, the plant will obtain agricultural waste that currently has no value for
the farmer and from other energy crops in marginal areas which up to now have been abandoned
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ABENGOA BIOENERGY
Our activities
Bioethanol origination
In addition to Abengoa Bioenergy’s own bioethanol production capacity, which is marketed by the trading subsidiaries,
bioethanol origination from third party producers is also a large part of the business, adding the additional capacity to a
common pool, which allows for a greater flexibility and competitiveness towards the clients portfolio.
Production
The main product, bioethanol, is produced in the plants in Europe, United States and Brazil. Obtained from cereal grain
and sugar cane, through chemical processes and treatments, bioethanol is used to produce ETBE (a gasoline additive), or
for its direct mixing with gasoline, with different percentages of bioethanol, the most common being e85, e15, e10 and
e5 (gasoline with percentages of bioethanol of 85, 15, 10, and 5 % respectively).
En Abengoa Bioenergía San Roque se produce biodiesel a partir de aceites vegetales crudos de soja y de palma. Esta
planta esta anexa a la Refinería de Cepsa a la cual suministra el biodiesel (FAME). De tal forma se obtiene un combustible
compuesto de un 5 % de biodiesel y un 95 % de gasoléo.
Otro producto que se obtiene en Abengoa Bioenergia Brasil es el azúcar a partir de los cultivos de caña de azúcar. Esto se
realiza en las unidades agroindustriales de Saõ Luiz y de Saõ Joao, en el estado de Saõ Paulo. Para la producción de
azúcar se utiliza los mismos equipos de extracción (mismas moliendas) y sistemas auxiliares, que para la producción de
bioetanol a partir de caña de azúcar.
Como coproducto del proceso de fabricación de bioetanol a partir de cereales se obtiene el denominado DGS, un
compuesto altamente proteico, resultante de la extracción del almidón de los cereales que resulta óptimo para la
fabricación de pienso para el ganado.
Otro coproducto del proceso de obtención de bioetanol a partir de caña de azúcar, es el bagazo de caña, el cual se utiliza
como combustible en plantas de cogeneración de electricidad las cuales están anexas a las plantas de producción de
bioetanol.
Marketing of bioetanol, DGS and súgar
Abengoa Bioenergía has offices at strategic points for the global trading and export of bioethanol, located in Rotterdam,
Holland, with immediate access to the Europoort; in St. Louis, USA, in the heart of the main area for grain production
and livestock breeding in the country; and in Sao Paulo, Brazil, in the main area for the production of bioethanol from
sugar cane. From all of these regions, the demand generated in the European, American and Brazilian markets is met,
both for bioethanol, as well as for DGS and sugar.
Market fluctuations, political conditions in the different geographic zones, and other factors affecting the company's
activities, both in terms of the acquisition of raw materials and in the production of marketed products, are analyzed in
detail from a global point of view, with the aim of obtaining a better vision of the world market. A thorough analysis and
risk management means an improved process performance, always within the context of sustainable development,
respecting the environment, human rights and the community as one of its maxims. Considering all of this, Abengoa
Bioenergía has the opportunity to optimize supplies to different markets thanks to the management of the export and
import decision and, therefore, it offers its clients the option of choosing the solution that best suits their needs,
providing the necessary reliability and flexibility in the supply of bioethanol.
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ABENGOA BIOENERGY
Our activities
Cogeneration
Some of the current bioethanol production facilities are equipped with co-generation systems that by using either natural
gas or sugar cane pulp generate the vapor and the electricity required to operate the bioethanol plants. At present, the
co-generation systems of the plants in Spain, Holland and Brazil, produce a greater amount of electricity than the plant's
needs, the excess being fed to the electricity grids of each country, leading to greater profitability and sustainability of the
facilities.
Primer envío de biocombustible certificado bajo el esquema RBSA de Abengoa Bioenergía al mercado alemán
New technologies
Abengoa Bioenergía Nuevas Tecnologías (ABNT) began its operations in 2003 with the purpose of positioning Abengoa
Bioenergía as the leading innovator in the Bioenergy industry. The mission is to develop leading edge technological
processes for the production of bioethanol and co-products.
The team of engineers and scientists, together with other R&D centers, universities and industrial partners, develops
innovative processes in order to increase the bioethanol yield in dry mills, improve the quality of co-products, develop
2012 Annual Report
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ABENGOA BIOENERGY
Our activities
new co-products and develop the biomass technology for the production of ethanol and co-products. Likewise, it leads
the conceptual design and regulatory surveillance in terms of sustainability of the three geographic locations of Abengoa
Bioenergía.
As part of the business strategy, Abengoa Bioenergía Nuevas Tecnologías will develop and register the Intellectual
Property to provide technology to third parties under management agreements.
The mission of Abengoa Bioenergía Nuevas Tecnologías consists of developing and demonstrating sustainable
technological solutions through science and innovation, in order to meet Abengoa Bioenergia’s strategy plan targets,
which include the following:
Abengoa Bioenergia’s strategy plan targets, which include the following:
Developing and marketing biomass technologies at competitive prices.
Desarrollar procesos de valorización de las fracciones de residuos sólidos urbanos para la producción de
biocombustibles.
Desarrollar y aplicar procesos catalíticos para la producción de biocombustibles y bioproductos.
Administering management systems (technological procedures and solutions) that ensure the compliance with
the sustainability requirements of biofuels.
Desarrollar y comercializar tecnología para producción de productos químicos de valor añadido a partir de
lignina, azúcares y etanol.
Promoting the development of energy crops.
Developing the biomass market.
Develop and improve new enzymes for cellulose breakdown.
Realizar análisis tecno-económicos y ciclos de vida avanzados de la planta de captura de CO2 mediante
producción de microalgas.
Developing end-use programs for biofuels.
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, 2012 has been a year full of
successes.
Europe
The most significant milestones achieved in Europe during 2012 have been:
Completion of the construction and commissioning of the Ecoalga Project pilot plant.
Consolidation of the operations in Abengoa Bioenergy Netherlands in Europoort, Rotterdam, Holland.
Promotion and expansion of the direct blending biofuel (e85) service station network, with 31 supply points and
211 Mgal ditributed in Spain.
Development of the ethanol direct blending in Spain.
Consolidation in the sales for higter ethanol blends (e10) in Europe, particularly in France, Germany and Finland.
Agreement with the oil operation company Total ACS (France) in order to produce second-generation bioethanol
to be used for motor sport competitions.
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ABENGOA BIOENERGY
Our activities
Team sponsorship of a in the Spain rally championship. Abengoa Bioenergy will supply the e85 bioethanol for
the first and single racing car in the country propelled by a biofuel.
100 % delivery of bioethanol, providing Abengoa Bioenergy’s biofuel sustainability certification.
Distinguished with the “Sustainable Biofuels Award” for the sustainable development in the execution of the
RBSA (RED Bioenergy Sustainability Assurance) certification system.
First delivery of biofuels, certified under Abengoa Bioenergy's plan, to the German market.
Awarding, with the participation of other companies, of the Bio-Andalus project addressed to the experimental
development of bioproducts in Andalusia, Spain.
Awarded the prize of the Spanish Independent Commission for Safety and Hygiene at Work in the Chemical
Industry and Similar (COASHIQ) by Bioetanol Galicia for the achievements in the reduction of on-site
accidents.Celebración de la XI World Biofuels Conference.
Participation in the “2012 BP Forum on Energy and Sustainability”.
Received the favorable audit report SA8000 that certifies the total of Abengoa Bioenergy companies in Europe in
this International Social Responsibility Standard.
Continuation of the STOP program, obtaining an improvement in on-site work safety at the facilities of Abengoa
Bioenergy Europe, as well as in personnel performance.
Production of 295 Mgal of bioethanol.
Production of 715,803 t of DGS (corn, wheat and barley). Increase in the direct sales of DGS to global target
markets.
United States
For Abengoa Bioenergía, this has been a year of consolidation and growth in the United States.
During 2012, the company reached the following achievements in the United States market:
Fulfillment of more than 50 % of the construction milestones in the new production facility of Abengoa in
Hugoton, Kansas.
Selection of Abengoa Bioenergy as one of the e15 producers authorized in USA.
Successful validation of 2G technology in the pilot plant of York, Nebraska, with an average of more than 272 L
of ethanol per ton of dry biomass residue.
Improvement of the logistical flexibility and increase of the storage capacity to 3.5 Mgal at the Houston terminal.
Optimization of barge traffic by the Mississippi and Ohio rivers in order to increase the export activity of both
ethanol and DGS (Distillers Grains with Solubles)..
Renewal of the ISO 9001, ISO 14001 and OHSA 18001 certifications for all the companies of USA.
Implementation of the RBSA program in ABC York, ABI and ABIL to facilitate the classification of ethanol
supporting the sustainability initiatives.
Obtained the prize “Norfolk Southern Railroad Chemical Safety Award” by Abengoa Bioenergy of Illinois.
Obtención del premio “Greater St. Louis Top 50”, que reconoce a Abengoa Bioenergía como una de las
empresas más sobresalientes de la región de St. Louis por el cuarto año consecutivo.
Obtained the certification of the greenhouse gas inventory system of Abengoa Bioenergy companies in USA
according to the ISO-14064 standard.
Participación en la conferencia 2012 Biomass Conference celebrada en Washington, D.C.
Successful implementation of the Social Responsibility Program SA 8000 at Abengoa Bioenergy in United States.
Continuation of the STOP program, obtaining an improvement in on-site work safety at the facilities of Abengoa
Bioenergy United States, as well as in personnel performance.
Production of 305 Mgal of bioethanol and 840,707 t of DGS.
Abengoa Bioenergía joins the new coalition "Fuels America".
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ABENGOA BIOENERGY
Our activities
Brasil
During 2012, the company reached the following achievements in Brazil market:
Consolidation of the operations of the two cogeneration plants in Brazil, making a total installed capacity of 140
MW.
Start of the operation of the new cane crushing plant São Luiz, in Brazil, increasing the capacity up to 3.5 Mt per
year.
Selection of Abengoa Bioenergy Brazil by the Banco Nacional de Desarrollo Económico y Social de Brasil (BNDES ‟
National Bank for Economic and Social Development in Brazil) for developing a second-generation ethanol plant
based on sugar cane.
Conclusion in the Project Direction Program (DPA) 2012 by Abengoa Bioenergy Brazil.
Execution of the implementation of the STOP Program in Abengoa Bioenergy Brazil.
ISO 14001 and OHSAS 18001 certifications of the Abengoa Bioenergy São João cogeneration plant.
ISO 14064 certification for the inventory of greenhouse gas (GHG) emissions.
Puesta en marcha del Proyecto Renovación en Abengoa Bioenergia Brasil que capacita cortadores de caña para
desarrollar otras actividades.
Obtained the National Commitment Seal in Brazil for improving the work conditions in the sugar cane.
Production of 27.5 Mgal of bioethanol.
Production of 411,875 t of sugar.
2012 Operating results
Bioethanol
(Mgal)
Region
Biodiesel
(Mgal)
DGS (t)
Sugar(t)
Glycerine (t)
Electricity (MWh)
Europe
295
38
715,803
-
2,986
1,066,012
United States
305
-
840,707
-
-
-
Brazil
27,5
-
-
411,875
-
482,403
Total
627,5
38
1,556,510
411,875
2,986
1,548,416
Europe production
Throughout 2012, Abengoa Bioenergy has continued the operation of its three bioethanol plants in Spain
(Ecocarburantes Españoles, Bioetanol Galicia and Biocarburantes de Castilla y León), with a total installed capacity of 546
ML per year; of its bioethanol plant in France, with a production installed capacity of 250 ML per year, operated by
Abengoa Bioenergy France; and of its bioethanol plant in Europoort (Rotterdam, Holland), with a production installed
capacity of 480 ML, turning it into the largest of the European Union. Besides, through Abengoa Bioenergía San Roque,
it operates a biodiesel production plant in Cadiz, Spain, with an annual installed capacity of 225 M L.
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ABENGOA BIOENERGY
Our activities
Major achievements in Europe
In addition to the commercialization of bioethanol, during 2012, Abengoa Bioenergy has worked on several projects that
consolidate its operations in Europe.
Construction works of the Ecoalga project experimental plant have been completed. The objective of this project
is the evaluation of the technology to grow microalgae and cyanobacteria as raw materials for the production of
biofuels and animal feed, as well as for sequestering CO2 generated by fermentation in the bioethanol
production process. This experimental plant has a total surface of 5,000 m2, it is located in Cartagena (annexed
to the plant that produces bioethanol as from cereal), and it is fed by the CO 2 generated in the cereal grain
fermentation process itself.
Abengoa Bioenergy and Total ACS have signed an agreement to produce racing fuel with second-generation
bioethanol. The first one produces second-generation bioethanol as from wheat straw in the pilot plant that the
company has in Salamanca (Spain). The second one supplies fuels, lubricants and other fluids to a third of the
Formula 1 teams.
The blend of this second-generation bioethanol with racing fuel is carried out at the production facilities of Total
ACS in France to produce a specific grade known as CMG2, designed for use in different motor racing
championships such as the GT Tour, FIA GT1 World, FIA GT, Blancpain Endurance Series, among others. The
collaboration between Abengoa Bioenergy and Total ACS is one of the initiatives undertaken by Abengoa
Bioenergy in order to develop and diversify the biofuel market.
Abengoa Bioenergy has signed a new and exclusive agreement in 2012: it has sponsored a Rally team in the
Spanish championship and the first and only bioethanol powered racing car in Spain. Specifically, this car has
been adapted to e85 bioethanol (a blend of 85 % ethanol and 15 % gasoline), which will be supplied from the
Ecocarburantes Españoles plant in Cartagena (Murcia).
Vehículo de competición Mitsubishi EVO 9 R4 impulsado con biocarburante e85
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ABENGOA BIOENERGY
Our activities
For the first time, Abengoa Bioenergy has supplied bioethanol produced in the facilities of Abengoa Bioenergy
Netherlands to be delivered to Germany using its RBSA (Abengoa RED Bioenergy Sustainability Assurance)
scheme and authorized to operate in the official German database (Nabisy). Currently, every Abengoa Bioenergy
plant in Europe is authorized under the RBSA standard in this official database (known as Nabisy) to certify the
sustainability of the biofuel and the accounting of certificates. This supply successfully ends the RBSA
development process, which began with the implementation of traceability and calculation systems for
greenhouse gas (GHG) emissions in the company's operations. With the first legal supply of a product certified
under the RBSA Standard and the independent certification of the agricultural suppliers' production, bioethanol
production plants and all the logistic facilities, the commitment that Abengoa Bioenergy has with the
sustainability of all its products is reinforced.
In addition to the commercialization of bioethanol, during 2012 the company has continued to work on the
development of an e85 (bioethanol 85 %, gasoline 15 %) supply network in Europe, mainly in Spain, where
there already is more than 31 publicly accessible service stations and several fleet supply points, having sold over
800,000 L of e85.
This network is key for the expansion of bioethanol and, although still in its early stages, it promises to become
an undisputed reality within the next years, capable of supplying biofuels to consumers all throughout Europe.
Abengoa Bioenergy, in collaboration with other companies, has been selected for the development of the BioAndalus project, which objective is the experimental development of production processes for high added value
biofuels and functional biomaterials, as well as the possibility of generating co-products during the same process
of obtaining bioethanol. The project, which has obtained a financial aid of more than 5 M€, is included in the
Feder Interconnecta program of the EC within the framework of the "Andalucía Sostenible" (Sustainable
Andalusia) program.
The Spanish Independent Commission for Safety and Hygiene at Work in the Chemical Industry and Similar
(acronym in Spanish, COASHIQ) recognizes the work of the sector’s companies that have achieved the best
results for reduction in workplace accidents and has awarded a prize to Bioetanol Galicia for offering
improvements in terms of workplace safety in the chemical industry and similar.
With the excellent results achieved by Bioetanol Galicia regarding workplace accidents during the year 2011, this
Abengoa Bioenergy company has been one of the chemical companies awarded a prize during the ceremony
held on June 20 in Tarragona.
On March 28, 2012, Abengoa Bioenergy has been distinguished for the second time with the Sustainable
Biofuels Award, in the category of Sustainable Bioethanol because of the development of the RED Bioenergy
Sustainability Assurance (RBSA) Standard.
The Sustainable Biofuels Awards have been created to acknowledge the tremendous innovative work that is
developed in terms of sustainability and renewable biofuels. With this new award, Abengoa Bioenergy
strengthens its commitment to sustainable development as a fundamental pillar of the company, trying to offer
competitive and sustainable alternatives to the market. For the eleventh consecutive year, on May 2012, the
World Conference on Biofuels “World Biofuels 2012” was held at the Hospital de los Venerables, headquarters
of the Focus-Abengoa Foundation in Seville.
The world conference on biofuels “World Biofuels 2012” aims to promote, through public discussions, a genuine
open platform for the research, presentation and debate of ideas and results by means of those actions that are
deemed to be appropriate at any given time based on the nature of the issues to be analyzed.
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ABENGOA BIOENERGY
Our activities
Abengoa Bioenergy participates in the BP Energy and Sustainability Forum 2012 that consists in an annual
meeting to deal with current issues related to energy and sustainable development and it always has the
internationally recognized experts. The forum has analyzed technical, environmental and regulatory issues in
order to design a sustainable policy for biofuels in the European Union.
During the forum, Abengoa Bioenergy has been part of the panel “A sustainable framework for biofuels in
Europe” along with more than 30 national and international experts, who have encountered several difficulties
to achieve the goals set by the European Commission for the use of biofuels. The main conclusion reached by
the participants was that the objectives set by the European Union can only be achieved with comprehensive,
flexible and long term policies.
Abengoa Bioenergy Europe has received a favorable audit report SA8000, certifying the total of companies that
comprise the geography in the EU in said standard. This certificate means a high level of occupational
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ABENGOA BIOENERGY
Our activities
responsibility to which all staff contributes based on the fundamental pillars of Abengoa's Social Responsibility
Policy.
After an initial phase of training of the whole staff and overcoming the different implementation phases in all
the companies of the Management System, which requires SA8000 in its content, the audit process was carried
out in two phases by IQNet-Aenor, where the opinion and impressions of the staff, about their company and
position, have a weight and role that is essential to the awarding of the certificate since such audits are based on
personal interviews with staff members.
The improvement in safety at work reached by the implementation of the Dupont STOP TM program at Abengoa
Bioenergy plants in United States has been key for its extension to the rest of the company facilities in Europe
and Brazil.
Such program, which has been launched during the months of April and May in both geographic locations, helps to
create safer work spaces through observations and audits, training technology and communication skills, all of this in
order to reduce unsafe acts that are those causing 95% of occupational accidents.
The final objective of this and other initiatives already implemented at Abengoa Bioenergy is to maintain the highest
safety standards to comply with the idea that every professional illness and accident can be avoided.
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ABENGOA BIOENERGY
Our activities
Industry
During 2011, through national and international sales activities and due to the experience acquired in the business, the
company has managed to take hold as one of the main bioethanol managers and suppliers throughout Europe.
The majority of the bioethanol produced comes from the plants in Spain, France and the Netherlands, but, additionally,
bioethanol has been obtained from third party suppliers, which increases the supply capacity, provides business control at
the continental level and confers a clear international projection of the company’s potential.
In addition to the sale of bioethanol, during 2011, the development of an e85 supply network (bioethanol 85%, gasoline
15%) in Europe has been going on. This network is key for the expansion of bioethanol and it is set to quickly become a
de facto reality in the coming years, providing the consumer with biofuels throughout Europe.
Ecocarburantes Españoles plant. Cartagena, Murcia (España).
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ABENGOA BIOENERGY
Our activities
Legislative advances in Europe
In 2009, biofuels accounted for just 4% of European transport fuel. That year, two European laws came into force that
will stimulate and consolidate the European biofuel industry throuhout this decade.
The Renewable Energy Directive (2009/28/EC) requires that by the year 2020 at least 10% of transport fuel in all
countries of the European Union (EU) be made from renewable energy. To encourage the growth of lignocellulosic
ethanol, consumption of it will be allowed to count double towards the requirement.
This year and last year, all 27 Member States of the EU published detailed action plans showing how incrementally, year
by year, they intend to achieve the 10% binding objective. These plans foresee that bioethanol consumption in Europe
will almost double from around 7,500 million
litres this year to 14,400 million litres in 2020.
The other framework Directive, on fuel quality
(2009/30/EC), requires that as from this year,
Europe’s fuel blenders must cut the
greenhouse gas emissions from gasoline and
diesel by at least 6% by the year 2020.
Potentially this offers an even greater incentive
to consume biofuels, since the oil industry has
few options available to comply with this
obligation and few, if any, are costless.
In order to allow this massive market
expansion, the Directive about fuel quality has
duplicated the maximum amount of
bioethanol accepted in each liter of gasoline
from 5 % to 10 % throughout the EU. This
gasoline, known as E10, has already been
Bioethanol gas station
introduced in Germany, France, Sweden and
Finland. Lots of progress has been made in the tasks regarding the development of a European standard on the E10.
Once adopted, it will promote even more the introduction of the E10 not only in the EU but also in other European
countries that do not belong to the EU such as Turkey, Switzerland and Norway.
Another critical element of this legislation is the introduction of sustainability criteria to ensure that all biofuels sold in the
European market deliver not only fuel, but social and environmental goals as well. These sustainability criteria prohibit the
sale of bioethanol originating from land with a high degree of biodiversity and high carbon content raw materials, such
as from wetlands, primary forests, biodiverse grasslands and environmentally protected areas, and the transformation of
such land to this purpose. The European Commission has recently stated its desire to extend the use of these criteria to
other forms of bioenergy.
2012 Annual Report
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ABENGOA BIOENERGY
Our activities
Production plants in Europe
Ecocarburantes Españoles
95 % owned by Abengoa Bioenergía S.A. and 5 % owden IDEA.
Installed capacity of 150 ML of bioethanol per year.
Annual DGS production capacity of 110,000 t.
Electrical power production capacity of 135,000 MWh
per year.
Annual grain consumption of 300,000 t.
Estimated annual consumption of wine and sundry
alcohol of roughly 50 ML.
The company Ecocarburantes Españoles, S.A. owns a bioethanol
production plant in the Valle de Escombreras, in Cartagena
(Murcia, Spain). It currently employs 79 highly qualified
professionals.
Part of the CO2 produced during the grain-to-ethanol transformation process is sold to facilities close to the plant,
thereby eliminating the need for these companies to produce their own additional CO2 and, therefore, making the
bioethanol production process even more efficient and curbing CO2 emissions into the atmosphere. Similarly, electricity is
generated during the production process, which provides power for the entire plant, with the surplus delivered to the
national power grid.
Bioetanol Galicia
100 % owned by Abengoa Bioenergía S.A.
per year.
The plant is currently in operation in Teixeiro (A Coruña). It
currently employs 82 highly qualified workers. The surplus
electricity generated during the bioethanol production process,
which greatly outstrips actual plant consumption, is delivered
to the national power grid, thus enhancing the profitability of
the process.
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ABENGOA BIOENERGY
Our activities
Biocarburantes de Castilla y León
per year.
The plant is located in Babilafuente, Salamanca, Spain. It
currently employs 110 highly qualified workers.
As with the other Spanish plants and in accordance with
applicable law, plantgenerated electricity that is not employed
in bioethanol production is delivered to the power grid.
Abengoa Bioenergy France
69 % owned by Abengoa Bioenergía S.A. y 31 % owned by
Oceol.
Annual DGS production of 145,000 t.
Annual grain (corn) consumption of 500,000 t.
The facility owners are Abengoa (69 %) and Oceol (31 %), an
association of the region’s main agricultural cooperatives and
industries. The company employs 73 highly qualified
employees.
This plant employs corn and low-quality vegetable alcohols as
raw materials and is located on the Petrochemical Platform at Lacq, Pyrénées-Atlantiques (France).
2012 Annual Report
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ABENGOA BIOENERGY
Our activities
Abengoa Bioenergy Netherlands
Projected annual bioethanol production capacity of
480 ML.
Electrical power production capacity of 400,000
MWh per year.
Annual grain consumption of 1.2 Mt.
Abengoa Bioenergy Netherlands B.V. is the holding company
of the plant that is located in Europoort (Rotterdam,
Holland). The company employs 84 highly qualified
professionals.
Abengoa Bioenergy Netherlands B.V. is the holding company
of the plant that is located in Europoort (Rotterdam,
Holland). The company employs 84 highly qualified professionals.
Biomass Plant
Cereal straw-based bioethanol production capacity of
5 ML per year.
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 enzymatic hydrolysis technology at this
level of output. It is located within the Salamanca bioethanol
plant, meaning that both facilities share common services and
process chains. The ethanol it produces is distilled to 42 % and
then concentrated and dehydrated in the first-generation
bioethanol plant.
The facility is being used to improve the design of the
commercial plants of tomorrow,gauge operational costs, identify bottlenecks and streamline operations.
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ABENGOA BIOENERGY
Our activities
Abengoa Bioenergía San Roque
100 % owned by Abengoa.
Annual biodiesel production capacity of 225 ML.
Annual crude glycerin production capacity of 18,500 t.
Annual vegetable oil consumption of 205,000 t.
The plant is located on a site annexed to Cepsa’s Gibraltar
Refinery on the Palmones de San Roque industrial estate (Cadiz,
Spain). It has been designed to operate with different kinds of
vegetable oil - soybean, rapeseed and palm - and does not
therefore depend on just one supply source. Its entire biodiesel
output is supplied to the Cepsa refinery. The plant directly
employs 55 highly qualified workers.
Production in United States
Abengoa Bioenergy is one of the largest bioethanol producers in the United States. The company currently has an
installed annual production capacity of approximately 370 Mgal, at six plants in Nebraska, Kansas, New Mexico, Indiana
and Illinois. 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, Chevron, Valero and Flint Hills Resources. In USA, most of the
ethanol is marketed in the form of e10 (10 % ethanol/ 90 % gasoline), although it is expected that the sales of e15 will
grow soon.
Three plants, Colwich, Kansas, Portales, New Mexico and York, Nebraska, are formed as Abengoa Bioenergy Corporation
(ABC). Furthermore, different companies have been created for more recent projects, including the continuous
fermentation plants in full operation in Ravenna, Nebraska (ABNE), Madison, Illinois (ABIL) and Mt Vernon, Indiana (ABI),
as well as one of the first worldwide second-generation plants commercially feasible being built in Hugoton, Kansas
(ABBK). Likewise, independent companies for trading (ABT) and new technologies (ABNT) have been created.
Abengoa Bioenergy US makes every effort continuously to perform the best practices in order to optimize its processes,
improve performance and minimize the risk within the production, commercialization and R&D areas. In january,
planning ahead for the challenging market conditions, Abengoa signed on an efficiency program throughout the entire
system designed to maximize productivity and reduce expenses in, at least, 19 M$ during the calendar year.
Besides, Abengoa is a market leader in second-generation biofuels and sustainability. All the company’s production assets
comply with the United Nations Global Compact guidelines on human rights, labor rights, environment sustainability and
the fight against corruption.
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Major achievements in United States
In addition to the commercialization of bioethanol, during 2012 Abengoa Bioenergy has worked on several projects that
consolidate its operations in United States.
24 out of the 41 construction milestones in terms of the new Abengoa production facility in Hugoton, Kansas,
have been completed. The facility, which opening is planned for 2014, will be the first second-generation (2G)
commercial plant in the world. The project has been financed by Abengoa itself and by the US Department of
Energy (DOE), thanks to the 932 and 1603 Aid Programs and the role as guarantor.
It is expected that the project generates an average of 300 jobs during the construction phase and until the
commissioning in spring, 2014. Once built, the plant will have a total production capacity of 95 ML of clean and
sustainable cellulosic ethanol, and will create 65 fixed positions.
The first corn stover collection, which initially began in 2011, was completed in 2012. The summer months
brought about the first collection of wheat straw. More than 20 superpiles gathered as from ½ ton bales are
available for the plant’s operational start up. The costs of gathering the biomass are dropping since the collection
techniques, the equipment and the economies of scale continue improving.
The Environmental Protection Agency (EPA) of United States has authorized twenty-two companies to produce
E15 (15% of ethanol and 85% of gasoline), the new blend allowed in cars and trucks manufactured as from
2001. Abengoa Bioenergy US subsidiary is among the authorized companies. The Obama Administration has set
as an objective to help owners of service stations to install 10,000 suitable pumps over the next five years.
The lease of the company’s ethanol storage capacity in the Houston navigation channel reaches approximately
13 ML. The terminal allows loading and unloading from trains, trucks, barges and vessels. The terminal´s direct
access to international waters opens up the imports and exports to and from United States, and complements
Abengoa’s bioenergy centers in Europe and Brazil.
In 2012, Abengoa achieved an increase in maritime exports of bioethanol. The company also raised the export
activity of DGS through barges along the Mississippi and Ohio rivers and implemented the pelletizing systems to
preserve the volume and optimize transportation. The trading subsidiary (ABT) has positioned itself well with
strategic terminals in several areas of United States, the highlight being its Gulf of Mexico terminal.
All North American companies have official certifications pursuant to the requirements of ISO 9001:2008, ISO
14001:2004 and OHSAS 18001:2007, highlighting Abengoa’s commitment to quality, safety and environment.
The auditing processes to renew certifications were completed in 2012 in order to comply with the requirements
of the ISO 9001, ISO 14001 and OHSAS 18001 certificates.
In August 2011, after the 2010 Life Cycle Analysis (LCA) external verification, the ABC-York facility began to
make popular RBSA calculation tools developed internally and to generate labels for all the ethanol shipments.
Once the grain suppliers of York are certified, York will be able to generate sustainable labels for the ethanol
produced with grains certified pursuant to the standards of the EU Renewable Energy Directive, which will allow
the export of bioethanol from USA to the EU. The ABI and ABIL facilities received the external verification of the
2010 LCA data on October, 2011. They began to use the RBSA (RED Bioenergy Sustainability Assurance) tools
and to generate labels for all the ethanol shipments in January, 2012. The approval to export to the EU is still
pending in terms of the rest of the production facilities in USA.
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In 2012, the entire inventory of the greenhouse gas (GHG) system of Abengoa Bioenergy’s US companies
obtained the certificate of compliance with the ISO-14064 standard. Abengoa constantly works to reduce the
carbon footprint of its biorefineries and reduce GHG emissions in 20,000 tons in 2012 resulting from these
activities.
The company has continued with the implementation of the STOPTM safety program in all the plants, which has
not only contributed to improve the occupational safety environment but also improve plant efficiency.
Abengoa Bioenergy has been recognized as “Top 50” company in the St. Louis area for the fourth consecutive
year. The “Greater St. Louis Top 50” is an annual program of awards granted by the St. Louis Regional Chamber
and Growth Association (RCGA) to give prizes to the best companies of the St. Louis region.
The award to Abengoa Bioenergy was mainly based on its leading position in the ethanol industry, committed to
an aggressive growth throughout the world, as well as on its leadership in the development of new and
improved technologies regarding the production of ethanol, including cutting-edge technologies in secondgeneration biofuels.
Tractor with biomass
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On June 13, 2012, Abengoa Bioenergy of Illinois (ABIL) received the “Norfolk Southern Railroad Chemical Safety
Award “. The award is granted every year to recognize those companies and facilities that ship, without
incidents, throughout the year more than 1,0000 rail cars of merchandise containing federally regulated
hazardous material through the Norfolk Southern rail network. The Norfolk Southern Railway is a Class I rail
network in United States, owned by the Norfolk Southern Corporation. The company operates around 32,000
route km in 22 eastern states. To achieve these numbers, Abengoa Bioenergy of Illinois has safely loaded ethanol
24 hours a day and 7 days a week. ABIL loaded over 2,000 rail cars and 3,600 trucks and safely transported
more than 322 ML of ethanol in 2011.
Abengoa Bioenergy companies in United States have achieved the satisfactory implementation of the Social
Responsibility Program SA 8000 and are working in order to receive such certification by the end of 2012.
The SA 8000 standard is the first international certification record of Human Resources Management and an
important aspect for the Corporate Social Responsibility. The objective of the certification is the guarantee of
workers’ rights, procedurizing and systematizing the processes regarding human resources and supplier’s
management.
Towards the end of 2011, Abengoa halted the operations in its bioethanol plants in Colwich, Kansas and
Portales, New Mexico due to the low availability of raw materials as a result of severe drought conditions in the
USA. Colwich and Portales are energetically efficient facilities designed to produce 95 and 125 ML of ethanol
respectively per year using sorghum (millet) as raw material. Millet is a cereal crop normally grown without need
of irrigation. Abengoa is taking advantage of the inactivity time to carry out improvements in the treatment of
wastewater and other production processes.
.
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Legislative advances in United States
United States Capitol. Washington D.C.
2012 U.S. Legislative and Regulatory Actions
The 2010 U.S. congressional elections resulted in a strongly divided congress, with Republicans gaining control of the
House and Democrats holding to a majority in the Senate.
Most predictions call for the 2012 elections to maintain this divided control with a particularly narrow margin in the
Senate. This division of control, along with strong philosophical differences as to how to address budget issues and
economic recovery will likely continue the gridlock in congress seen throughout 2011 and 2012. The resulting
environment makes the political compromise necessary to pass any complex legislation (including legislation important to
the biofuels industry) very difficult to achieve. Fortunately for the biofuels industry, the Renewable Fuel Standard (RFS)
which was passed as a part of the Energy Independence and Security Act of 2007 and which is the primary driver for the
ongoing use of ethanol in the United States, and especially for the continued development and expansion of cellulosic
ethanol, is not scheduled to expire until 2022, and is unlikely to be modified in the near future without some significant
change in external factors.
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Federal Legislation
As anticipated, there was no significant legislation relating to biofuels passed by the US Congress in 2012. The $.45
VEETC ethanol tax incentive and the $.54 ethanol import tariff were both allowed to expire at the end of 2011. The
ethanol industry supported this expiration as the industry has matured, and the credit was not paid to ethanol producers
but to blenders of ethanol. With the RFS as the main driver for ethanol blending, the incentive was only helpful in times
when ethanol supply exceeded the RFS requirement at the same time that ethanol pricing exceeded gasoline pricing
(which has not been the case during times of high oil prices).
As a result, the ethanol producer did not typically receive the value of the credit. Brazil has also suspended their import
tariff which has allowed an increase in ethanol trading between the two countries, and particularly in US exports to
Brazil, which increased significantly in 2012.
In addition to the RFS, two other significant pieces of legislation that are supportive of investment in the development of
cellulosic ethanol and other second generation biofuels include the Energy Title provisions of the 2008 Farm Bill
legislation (which expire September 30, 2012), and the accelerated depreciation allowances and production tax credit for
cellulosic ethanol (PTC ‟ which are expire December 31, 2012). Many other programs will expire at year end and
extending legislation of some form will have to be passed by congress. The ethanol industry is working to get congress
to extend both of these legislative packages either prior to their expiration, or near the beginning of 2013
Administrative Regulations
Renewable Fuel Standard Regulations:
As previously noted, congress adopted an enhanced Renewable Fuel Standard (RFS) as a part of the Energy Independence
and Security Act of 2007, requiring the increased use of ethanol (from 9 to 36 billion gallons per year) by 2022. This
legislation continues to be the main driver for the growth of the ethanol industry ‟ particularly second generation
cellulosic ethanol. Regulations implementing the RFS initially became effective July 1, 2010, but EPA continues to fine
tune these regulations over time. Most recently in 2012, EPA approved and published a final GHG life cycle analysis and
a formal pathway for grain sorghum (or milo), when combined with other GHG reduction technology, to qualify as an
Advanced Biofuel under the RFS definitions. This allows for a potentially greater value for ethanol produced from grain
sorghum than from corn. Two of the six production facilities operated by Abengoa Bioenergy in the US utilize grain
sorghum and may be able to benefit from this regulation.
Overall the law and the regulations as revised and implemented are very favorable for the ethanol industry. The RFS
legislation established very aggressive targets for production of Advanced and Cellulosic Biofuels, but EPA was given
flexibility in implementation through authority to evaluate and modify these volumes on an annual basis to consider
actual production and availability of the fuels. As a result, the required volumes for cellulosic ethanol have been reduced
by EPA for the first three years of the program due to a lack of production and availability of adequate cellulosic ethanol
volumes. However, even with the reductions in cellulosic ethanol volumes required, EPA has maintained the overall total
volume requirements through 2012 for the RFS for as initially scheduled in the legislation. This has the effect of allowing
other Advanced Biofuels to replace cellulosic gallons that are not yet in production. Fortunately, several cellulosic ethanol
developers, including Abengoa and other large international companies such as DuPont, BP and others, have commercial
scale production projects that are in construction now and will prove these new technologies on a commercial scale,
making future expansion in cellulosic ethanol a quicker and achievable reality.
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E15 Approval and Implementation:
In 2010 and 2011 EPA announced their approval of increased ethanol blends in gasoline up to 15% (E15) for use in 2001
and newer model year vehicles. However, there were still some hurdles to overcome before E15 could actually be
blended and sold. During 2012 the EPA satisfied all of these final technical federal requirements (including approval of
health effects testing data and a formal Misfueling Mitigation Plan) which has allowed the first gallons of E15 blend
gasoline to be sold in the state of Kansas. Other states will soon follow as final state technical issues are resolved, and
E15 becomes more widely available. This means that about 2/3 of all cars on the road (which consume almost 75% of
the gasoline sold within the US) can now legally use ethanol blends up to E15. This positive decision will help to open up
more ethanol demand and ultimately will have a positive effect on ethanol prices.
In related action, the Washington DC Circuit Court of Appeals issued two separate decisions in lawsuits on appeal in
2012, both of which were supportive of the RFS and E15. The court supported EPA’s actions in allowing certain
previously existing ethanol plants to qualify to produce biofuels under the RFS provisions, and specifically confirming
EPA’s approval of E15 blends for the vehicles described above. Lawsuits had been filed by petroleum interests and
certain food production interests in order to attempt to overturn these ethanol-positive actions by EPA.
RFS Waiver Request:
In 2008 the governor of Texas filed a formal request with EPA to reduce or suspend the RFS ethanol requirements due to
high prices of corn that were allegedly impacting the profitability of livestock producers in Texas. The EPA denied that
request and in doing so set a high standard for any future requests to waive these RFS standards. The 2012 drought
experienced by the US also resulted in livestock groups pushing six state governors to formally request EPA to consider a
temporary reduction or waiver of the RFS requirements. Supporters of the RFS note university studies that conclude:
The drought (not ethanol use) has caused an increase in corn prices that impact all users including ethanol
producers, but a waiver of the RFS is not likely to significantly reduce corn prices
A waiver of the RFS would not have any significant impact on food prices overall
A waiver of the RFS would be likely to cause a significant increase in gasoline prices as refiners switch to more
expensive gasoline supplies, and more expensive sources of octane, which would harm US consumers
Based upon EPA’s prior analysis and actions, it is unlikely that this waiver request will be granted.
State Legislation
The most significant piece of state legislation for the ethanol industry continues to be the implementation by California of
its Low Carbon Fuel Standard (LCFS) Legislation. On April 23, 2009 California adopted its draft plan to reduce emissions
under a LCFS which is being implemented pursuant to a 2007 Executive Order and supporting state legislation. The goal
is to reduce emissions from California’s transportation fuels by at least 10% by 2020. California, like the EPA in its
proposed rules implementing the Federal RFS, has attributed to ethanol use an impact factor for Indirect Land Use
Change (ILUC) emissions. Although both California and the EPA acknowledge ethanol’s GHG emissions to be
significantly lower than gasoline when only direct factors are considered, the addition of ILUC emissions as improperly
calculated by CARB, resulted in the conclusion that ethanol’s total GHG emissions are not significantly better than
gasoline, and in some specific cases could be worse.
The ethanol industry continues to negotiate with and offer technical support to California to establish that California has
improperly attributed these ILUC emissions to ethanol alone and that indirect effects are not calculated or attributed to
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gasoline or any other fuels. In fact, The California Air Resources Board (CARB) appointed an Expert Working Group
(EWG) to continue to evaluate these carbon intensity numbers, and that group has made a formal recommendation that
CARB significantly reduce the ILUC emissions attributed to ethanol fuels. However, CARB has not yet made any
voluntary decision regarding modifications to the rules despite the volume of evidence submitted questioning their initial
conclusions.
In addition to negotiation with the state to revise the ILUC provisions of the LCFS, several members of the ethanol and
petroleum industries filed a lawsuit against the State of California to prohibit implementation of the LCFS in its current
form on the basis that it violates the commerce clause of the U.S. Constitution by restricting manufacturing processes
outside the states borders without tying that restriction to emissions that actually occur within the state. In January of
2012 a Federal Court judge in California declared the LCFS law unconstitutional and unenforceable by California. This
ruling has been appealed by the state, but California is continuing to implement the law during the pendency of the
appeal.
The problem with the California law is that it does not apply proven scientific analysis or principals, and its
implementation discriminates against other states outside of California. If good science prevails and ILUC impacts are
evaluated on proven scientific analyses rather than assumptions, LCF programs have the potential to be extremely
beneficial for the ethanol industry as they recognize ethanol’s significant benefits in reducing direct GHG emissions when
compared to conventional petroleum based fuels. However, if the California LCFS is implemented as currently proposed,
the impact on Abengoa Bioenergy will be both negative (in that the California fuel market will be more difficult to access
for most Midwestern grain ethanol), and also positive (in that Abengoa Bioenergy produces a lower carbon ethanol than
some other ethanol manufacturers, which could give the company a slight advantage over other Midwestern ethanol in
the California market).
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Production plants in United States
Abengoa Bioenergy Corporation – Colwich
100 % owned by Abengoa Bioenergy Corporation.
Installed bioethanol production capacity of 95 ML per
year.
Annual installed DGS production capacity of 70,000 t.
Combined annual consumption of corn and sorghum
of 240,000 t.
The plant currently operates at 100 % capacity and continues
to report excellent efficiency and consistent operations.
Production capacity amounts to 95 ML per year, achieved
through continuous batch cooking and fermentation
processes. The plant currently employs 46 highly qualified
workers. It 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 coproduct is sold in its natural state. The plant can process corn and sorghum at the same time and 50
% of its energy requirements are covered with methane from a municipal solid waste landfill.
Abengoa Bioenergy Corporation – Portales
Installed bioethanol production capacity of 115 ML
per year.
Annual consumption of corn and sorghum of
260,000 t.
Expansion work was completed in 2006 to double production
capacity by utilizing batch cooking and fermentation
processes, with two separate distillation and dehydration
stages.
The DGS it produces is not dried in the process and 100 % of
the coproduct is sold in its natural state. The plant can
operate with corn and sorghum simultaneously and has an annual installed bioethanol production capacity of 115 ML.
The fully operational plant employs 46 highly qualified workers.
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Abengoa Bioenergy Corporation – York
year.
Annual corn consumption of 520,000 t.
Capacidad de producción de 2.500 t de aceite de maíz
anuales.
The plant currently operates at 100 % capacity and continues
to report excellent efficiency and consistent operations. More
than 50 % of the produced CO2 is captured and refined by an
on-site customer.
The facilities also provide services and logistical support to Abengoa’s adjacent pilot biomass plant. Production capacity
amounts to 210 ML per year, achieved through continuous batch cooking and fermentation processes. The plant
currently employs 55 highly qualified workers.
Abengoa Bioenergy of Nebraska
100 % owned by Abengoa Bioenergy.
year.
Construction on the plant got underway in 2005 and was
completed in 2007. The plant is currently operating at 100 %
capacity according to specifications and boasts an installed
bioethanol capacity of 340 ML per year, achieved through
continuous fermentation. It employs 60 highly qualified
workers.
The facility is the first in North America to utilize continuous
fermentation technology. The project includes a double railway circuit for simultaneous loading and shipment of 10 ML
of bioethanol in 95 tank cars. The plant is designed to recycle all process water, which is then treated and made ready for
reuse. The plant therefore consumes less water, produces minimal pollution and has the minimum possible impact on the
ecosystem.
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Abengoa Bioenergy of Indiana
year.
The plant is located near Evansville, Indiana, in the so-called
Corn Belt and next to the Ohio River, one of the country’s
main river routes. The bioethanol and DGS produced on-site
can be transported by truck, train or boat to supply the
markets on the eastern side of the United States, or exported
to other markets.
The Indiana plant currently employs 60 workers.
Abengoa Bioenergy of Illinois
100 % propiedad de Abengoa Bioenergy
100 % owned by Abengoa.
year.
The plant in Madison, Illinois, is sited next to the Mississippi
River, one of the main communication and transport arteries
running through the U.S. Midwest.
The Illinois plant currently employs 60 workers.
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New plant
Abengoa Bioenergy Biomass of Kansas. Under construction.
Annual biomass-to-bioethanol production capacity of 100
ML.
Daily biomass consumption of 1,000 t, including power
cogeneration fuel.
Work continues in the construction of the first commercial scale
plant capable of producing second-generation ethanol as from
biomass, located in Hugoton, Kansas. The project is expected to
provide an average of approximately 300 construction jobs until
completion and it will be commissioned in two phases:
cogeneration in autumn 2013 followed by ethanol production in
spring 2014.
The design of the plant uses a new and innovative application of a proven technology, combined with the constant
improvement of genetically modified organisms (GMO) for yeast and enzymes. Upon completion, the facility will provide
65 full time job positions.
Production in Brazil
Brazil is one of the world’s largest markets for bioethanol, and bioethanol production is expected to continue growing
sharply thanks to the success of flex-fuel vehicles, which currently account for nearly 90 % of vehicles sold in Brazil and
which can run on either gasoline or bioethanol.
Abengoa Bioenergy is the only company worldwide that operates in the world’s three largest bioethanol markets:
Europe, the United States and Brazil. Having streamlined operations in Brazil, the company is reporting sharp growth in
production throughout all its existing plants. It is also weighing up the merits of constructing a new plant and is
marketing its production overseas more effectively, thanks to the sales networks the company has in place. Moreover, the
company is making technological advances and improving sugarcane bagasse to cellulosic ethanol technology so as to
increase production in the mid-term and cut costs efficiently.
The company currently operates three plants: two sugarcane-to-bioethanol plants, with an annual installed capacity of
approximately 270 ML of ethanol and 727 t of sugar.
2012 also saw the operational entrenchment of the company’s two cogeneration plants in Brazil. Over a full sugarcane
growing period, the plants achieve installed capacity of 140 MW, generating 373,073 MWh per year for sale; this power
is brought to market under contracts compliant with Brazilian electricity industry regulations.
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The raw material for these two plants is sugarcane bagasse, which is fed into the boilers to produce steam. The steam is
then used to generate electricity in order to feed the production processes. The cogeneration plants are located in the
state of São Paulo, one at the São Luiz plant in the city of Pirassununga, and the other at the São João plant in the city of
São João da Boa Vista.
Major achievements in Brazil
In addition to the commercialization of bioethanol, during 2012 Abengoa Bioenergy has worked on several projects that
consolidate its operations in Brazil.
In April 2012, ABBR has started the operation of a new sugarcane mill at the plant of São Luiz in Pirassununga
with a capacity to process 750 tons of sugarcane per hour. With the operational start-up, the milling capacity
increased from 2.8 Mt to 3.5 Mt of sugarcane per year and, together with the enlargement of the São João plant
in 2010, Abengoa Bioenergy Brazil reached an installed sugarcane processing capacity of 7.3 Mt.
In October 2012, Abengoa Bioenergy Brazil has been audited by the Spanish Association for Standardization and
Certification (AENOR - Asociación Española de Normalización y Certificación) in the ISO 14001 (Environmental
Management) and OHSAS 18001 (Health and Safety) standards in its São João cogeneration plant.
During this same month of October, ABBR has carried out the recertification process of all the plants in the ISO
9001:2008 standard; the company has a three-year certification experience and a very capable team, which
applies the guidelines of the integrated management system in its activities.
In 2011, Abengoa decided to undertake the verification of the greenhouse gas (GHG) inventory. As a first step to
achieve this objective, the company verified the 2011 inventory through internal audits and further external
independent body in accordance with the principles of the UNE-ISO 14064-1:2006 standard, thus obtaining a
positive result. In January 2012, the plants of Abengoa Bioenergia São Luís and São João were audited by a
systematic and independent process duly documented by AENOR, therefore obtaining the certification.
The technological advances and environmental concerns have led to a rapid agricultural mechanization process.
By law, sugarcane burning, which is vital to facilitate manual cutting, must be eliminated in 2021 in São Paulo.
To address this scenario, companies associated to the Sugarcane Industry Trade Union (UNICA) have rolled out
various job training initiatives that allow both the existing cane cutters to adapt to functions related to
mechanization and to prepare these workers to work in other economy sectors.
Abengoa Bioenergy Brazil has started the Renovation project, which consists in developing skilled labor for other
areas of the sugarcane cultivation. Several courses such as electrician, tractor driver, welder and harvester
operator are offered among others.
In April 2012, the training course for Project Managers was completed having been organized by Abengoa
Bioenergy Brazil in agreement with the Instituto de Administração e Gerência (IAG), an entity related to the
Pontifício Universidade Católica do Rio de Janeiro, PUC/ RJ (Brazil), acknowledged as the country’s leading private
institution.
After being audited and recognized for its actions in the economic, social and environmental development and
for the interest of all its employees in the improvement of work conditions upon sugarcane cultivation, Abengoa
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Bioenergy Brazil received the National Commitment Official Seal of the Brazilian government, given by the
president Dilma Rousseff, ministers and trade union leaders belonging to worker commissions.
Abengoa Bioenergy Brazil has been selected by the Banco
Nacional del Desarrollo Económico y Social de Brasil (BNDES ‟
National Bank for Economic and Social Development in Brazil)
and by the Promotion and Investment Agency for Studies and
Projects (FINEP) to adapt its second generation ethanol
BNDES Banco Nacional del Desarrollo Economico y Social
technology to produce ethanol from sugar cane biomass. This
logo
project, which is part of the Industrial Innovation Program for
the Sugar Energy Sector (PAISS), will enable Abengoa to produce bioethanol and biobutanol from sugar cane
straw and bagasse.
The company will be responsible for implementing the technology required in order to carry out the project, as
well as undertaking the engineering work to develop a plant with the capacity to generate 100 ML of second
generation ethanol per year. To this purpose, it has the necessary experience and proprietary technology already
applied at its plants in Europe and United States, which produced ethanol from corn biomass using enzymatic
hydrolysis
.
Abengoa Bioenergia Brasil Sao Luiz
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Production plants in Brazil
Abengoa Bioenergia Brasil – Pirassununga
100 % owned by Abengoa Bioenergía.
Annual sugar production of roughly 285,000 t.
per year.
Annual sugarcane consumption of 3 Mt.
In the months of August and September 2010 began the
electricity co-generation of 70 MW, which uses sugar cane
pulp, the raw material used in their own sugar and ethanol
production plants. With this plant in operation, Abengoa
Bioenergía Brasil adds a third important product, energy, to
the sustainable development of their bioenergy businesses in
Brazil.
Abengoa Bioenergia Brasil - São João
100 % owned by Abengoa Bioenergía.
Annual installed bioethanol capacity of 38 Mgal.
Annual sugar production in the order of 360,000 tons.
Annual electricity production capacity 201,500 MWh.
Annual sugar cane consumption of 3.5 Mt.
In the months of August and September 2010 began the
electricity co-generation of 70 MW, which uses sugar cane
pulp, the raw material used in their own sugar and ethanol
production plants.
With this plant in operation, Abengoa Bioenergía Brasil adds
a third important product, energy, to the sustainable
development of their bioenergy businesses in Brazil.
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Trading, Logistics, and Raw Materials Origination
Abengoa Bioenergy provides solutions for its customers’ bioethanol and grain marketing requirements. It uses its
experience and alliances to maximize profit margins, minimizing operational risks through a combination of short and
long-term contracts, and price differential estimate structures. Based on the years of production experience, the company
experts have gained detailed knowledge of bioethanol and the raw materials market and developed relationships with
the major oil companies, and the major trade and raw-materials-logistics multinational companies.
Regarding raw materials, all necessary tools and contractual agreements with providers have been implemented, in order
to certify all raw materials consume by the company’s plants, according to the sustainability criteria in the European
policies, and in accordance with the demanded requisites by the bioethanol clients.
In its aim of offering maximum quality and nutritional safety, the company’s DGS experts provide assistance to the animal
feed production market, for a greater optimization of DGS use in products meant for animal feed for cattle, pig, and
poultry. Acknowledged logistics personnel assist in ensuring the products are transported as efficiently as possible and at
the lowest cost.
Abengoa Bioenergy offers its clients industry summaries, based on the cereal, ethanol, and DGS market fluctuations, with
an objective perspective of future trends. The company places great emphasis on maintaining its customers informed on
the ethanol market. It constantly publishes market reports, logistic cost estimates, and sales offers, in an attempt to
increase transparency and enable customers to operate their plants in the most profitable manner.
Abengoa Bioenergy stands apart from other ethanol supplies in the large number of added value services it offers. It
provides industrial summaries to its customers, which are based on the cereal, bioethanol, and DGS market fluctuations
and on market reports with an objective perspective of future trends.
Bioethanol export ship
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Trading Europe
Abengoa Bioenergy Trading Europe is a subsidiary of Abengoa Bioenergy that provides added value to the company,
optimizing efficiency by concentrating supplies, logistics and commercial effort, creating a unique brand name in the
market.
Products y services
Abengoa Bioenergy Trading Europe provides the following services:
Sells the bioethanol produced by Abengoa Bioenergía’s plants in Europe.
Manages the sale and enhances the value of bioethanol produced by several European manufacturers, through the
concept of “pooling” (addition of volumes), which adds flexibility and safety to the supply, while at the same time
optimizes the operations.
Manages the procurement of product from third parties in order to increase and diversify the volume and to maintain
the market share.
Manages risk and price coverage to consolidate margins for the company.
Manages negotiations with other sources (USA and Brazil) in order to seek new opportunities and markets.
Coordinates and optimizes the logistics of bioethanol from its source to the final customer guaranteeing the faithful
compliance with supply contracts.
Coordinates the distribution of product sustainability labels in order to fulfill each customer’s contractual
requirements and optimize the added value of supplies with a better sustainability.
Ensures the implementation, throughout the supply chain, of the sustainability criteria as required by the European
Policy under the implementation of Abengoa Bioenergía’s voluntary plan (RBSA).
Manages the purchase of raw materials (cereals, biomass, and vegetable oils) necessary for Abengoa Bioenergía’s
bioethanol and biodiesel plants.
Markets the by-products of Abengoa Bioenergía´s production facilities in Europe (protein compounds for animal feed
compounds).
Offers the after sale customer service to Abengoa Bioenergía’s customer portfolio.
Explores and develops business expansion opportunities in the European Union and other areas.
Abengoa Bioenergy Trading Europe offers producers the possibility to access global markets ensuring an optimal
operation margin and unifying risk management criteria.
Thanks to the unified commercial management, the value of all producer plants is enhanced by providing our customers
with maximum reliability and flexibility when supplying biofuels and animal feed.
During 2011 and due to the wide experience acquired in this business during the past decade, the company has
consolidated its leading international position in the commercialization of bioethanol in the European market, having
successfully distributed1.250 ML of bioethanol for use in biofuels in the EU as well as one million tons of protein
compound for animal feed; in addition over three million tons of raw materials have been sourced for the production of
biofuels.
Of all the bioethanol sold and distributed this year by Abengoa Bioenergía, 15% has been sourced through third parties
to complete the internal production and to have increased responsiveness for the demand created by customers in the
EU.
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This sourcing capacity is strengthened with the existing coordination among the three Trading Companies of Abengoa
Bioenergía, in Europe, Brazil and USA, through which the global negotiations and the opportunities to distribute
bioethanol flows towards markets with an increased added value, are channeled. In addition to the sale of bioethanol, in
2011, work has continued towards the development of a supply network of e85 (bioethanol 85%, gasoline 15%) in
Europe, mainly in Spain, where there are already over thirty service stations open to the public as well as several supply
points for fleets, having reached over 900.000 liters of e85 sold.
Bioethanol market status in Europe
The bioethanol market in Europe is a short supply market to cover all the demand regulated under the progressive
application of the Renewable Energy Directive in the Member States, which mandates the introduction of 10% of
renewable energy in the energy content for the transportation sector by 2020.
The shortage of supply with domestic production is covered by imports whose negotiation calculates toward the trend of
biofuel prices in Europe, and whether customs duties apply. In particular, during 2011, the majority of product imported
into Europe has come from countries that enjoy reduced customs duties with the EU, and more significantly from the
USA, making use of a fictitious duty code, to which the EU is trying to enact regulatory measures in order to avoid unfair
competition.
The price of bioethanol has been greatly supported during the year due to the equilibrium created in the supply and
demand balance thanks to these low-duty imports. Even though it has suffered from great volatility, it has not, in any
case, been affected by the increase that has occurred in the raw materials market.
The compliance with the sustainability requirements has represented an added value for bioethanol, with improved
conditions for the reduction of greenhouse gases and balance control of material and source certification in the supply
chain.
Abengoa Bioenergía, European leader in the production of sustainable bioethanol, has largely fulfilled these requirements
and has been able to position its production within the markets with the most restrictive standards, such as Germany and
Scandinavia.
Raw Material Markets status in 2012
The raw material market status has suffered an important increase in prices throughout the year due to the harvests poor
conditions and the pressure from a very unbalanced global supply and demand balance.
These fundamental factors, together with a regression of the capital markets, have again encouraged the inflow of noncommercial funds into the grain futures markets, both from the United States and from Europe, causing significant
volatility and a rising trend in the prices.
Currently, the market is waiting to know the progress of crops for the agricultural year with more certainty, which will
determine the yield of the new harvest. This forecast, the winter’s climatological progression, the demand fluctuations
and other macroeconomic aspects will determine the price movements in 2013.
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Trading United States
In the United States, Abengoa Bioenergy operates 6 ethanol biorefineries. Our production assets in Nebraska, Kansas,
and New Mexico have direct access to the western US marketplace via the BNSF and UP railroads and tanker trucks. Our
production assets in Illinois and Indiana give us access to the eastern US markets via the CSX, NS, CN, and KCS railroads,
tanker trucks, and river barges.
Abengoa Bioenergy is also a leader in Sustainability and 2nd generation biofuels. All of our production assets meet UN
Global Compact guidelines for human rights, labor, the environment, and anti-corruption and we are continually working
to lower the carbon footprint of our biorefineries. Abengoa Bioenergy is also developing a commercial scale cellulosic
ethanol plant in Kansas that, when completed, will provide ethanol to the US marketplace with significantly lower
emissions than gasoline and even 1st generation ethanol. Abengoa already owns and operates a cellulosic ethanol pilot
plant in Nebraska and a demonstration plant in Spain.
Abengoa Bioenergy Trading U.S., LLC was formed to manage the critical functions of grain procurement, ethanol and
DGS co-product marketing, and hedging and risk management for all commodities, including energy needs. The
concentration of these functions into one specialized entity for all U.S. operations is critical to achieve the company’s
goals of consistency, efficiency, and identification of one common brand throughout U.S. Abengoa Bioenergy operations.
Products and services
Abengoa Bioenergy Trading US provides its customers with services that cover all commercial ethanol aspects, from
obtaining raw material, signing agreements with farmers and cooperatives, to the sale of bioethanol and DGS on
national and export markets.
These are the services provided to customers, among others:
Ethanol Marketing
Logistics, including rail fleet leases and management
Grain Procurement and back-office accounting
Distillers Grains Marketing and back-office accounting
Natural Gas/Landfill Gas Procurement and basis pricing
Denaturant Procurement
Corn Oil marketing
Hedging and Risk Management (for corn, ethanol, distillers grains, natural gas and denaturant) including writing
and executing Strategies that encompass exchange-traded futures and options, OTC swaps and options, cash
market procurement and marketing, basis targets for both corn and natural gas
Commodity pricing for ABUS facility Budgets and Forecasting
Assistance in developing marketing and logistics plans for Maple projects
Market situation of bioethanol in United States
In 2012, the ethanol market started in a very similar way to 2011, a year that witnessed an industry with excess of
capacity and margins at minimum levels to maintain production. However, this year we did not observe the change to a
more balanced supply and demand since marginal producers, who had a very successful 2011 in terms of money,
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produced more ethanol than ever before during the winter months. Net exports have also dropped with respect to 2011
levels. This has caused stock to reach record levels and squash the economy until levels of profitability threshold.
The demand in USA continues to be strong as summer gets closer, with a real E10 market saturation. The worldwide
demand of ethanol from USA continues being strong and it is expected to reach again approximately 3,785 ML in 2012.
However, unlike 2011, imports from Brazil are coming into USA to help to comply with the advanced biofuel blend
requirements pursuant to the Renewable Fuel standard RFS2. It is expected that 2012 will witness more imports of
approximately 760 ML to USA than in 2011, most of which will arrive in USA between July and October. These imports
are putting pressure on the milling margins of the USA.
EPA’s (U.S. Environmental Protection Agency) approval to use E15 in every car model of 2001 and newer, prepares the
framework for higher blends in USA. Nevertheless, this fuel must start to capture the market share in 2013 in order to
comply with the RFS2 in 2014 and later on. Likewise, we are undergoing a strong dry period that will negatively affect
the corn harvest in USA. This will cause rationing in the demand of corn and could result in a negative impact on the
ethanol margins. Moreover, 2013 should offer the first commercial scale cellulosic ethanol production, proving that the
industry is evolving and becoming each time more sustainable. At a global scale, ethanol is confirming to be a form of
fuel that respects the environment even more; therefore, it will continue being introduced into new countries and gain
share of the global market.
The vision of Abengoa Bioenergy for 2013 and following years is very optimistic for several reasons. It is possible to
observe support in USA to the biofuels through the intensification of the RFS2 blend percentages up to 136,000 ML in
2022. Besides an increased domestic use of ethanol, we continue to make sure that USA adopts a strong position in the
global trading of ethanol, since Brazil’s production is focusing on the national market each time more. The ethanol export
trading in USA may easily reach 3,785 ML in 2013 again. Additionally, it is possible to appreciate a continuous growth in
the global demand of protein, which is equivalent to an important growth in the US market of DDGS (distillers dried
grains with solubles) for export.
Trading Brasil
In Brazil, the bioethanol market comes entirely from sugar cane, a vegetable with a high concentration of sucrose from
which the ethanol (energy ‟ fuel), sugar (energy ‟ food) and the solid residues (energy ‟ thermal) may be extracted,
known as the Brazilian sugar-energy sector.
En los últimos años se están desarrollando en Brasil nuevas tecnologías para producción de etanol de bagazo de la caña,
el etanol 2G, y también del sorgo.
Due to the world oil crisis of 1978, Brazil started a program to substitute gasoline as its main fuel for fleets. The
“Proalcool” program (National Alcohol Program), created a series of incentives for the production of ethanol hydrate
(92% purity), as a substitute for gasoline, and the former became the main fuel for the internal market, being at the end
of the 1980s responsible for the supply of nearly 90% of existing vehicles in the country. At that point in the national
industry, it was possible to create a series of fuel distribution networks and an improvement in the efficiency of national
cars.
Proalcool failed when the deregulation of the productive sector occurred, enabling plants to choose freely between
production of ethanol or sugar, thus eliminating the commitment to supply the domestic market. Almost all turned to
sugar exports taking advantage of the fact that the international markets for this product were experiencing a sharp drop
in production and world stocks, which led to strong international prices, leaving the internal market without fuel. Hydrate
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Ethanol fell into discredit and had its participation reduced to less than 10 percent of the vehicle fleet at the beginning of
the decade of the 2000’s.
From 2003, with the introduction of flex-fuel vehicles (vehicles moved by either gasoline or ethanol), the risk for supply
shortages in the internal market was mitigated. Brazil already had a closed distribution network for this fuel, and this has
brought strong advantages for the resurgence of the importance of ethanol for the internal market, causing an increase
in its participation, reaching a consumption volume in 2010 of 15.000 million liters.
For gasoline-powered cars, Brazil mandates a mixture of anhydrous ethanol that could vary between 18% and 25%, as
provided by the Provisional Measure No. 532, dated April 28th 2011. In 2010, nearly 29.000 million liters of gasoline
were consumed, with 7.400 million liters of anhydrous.
Adding the consumption of ethanol hydrate plus the consumed volume of anhydrous ethanol in a mixture with gasoline,
the total volume consumption of ethanol in Brazil is higher than that of pure gasoline. This represents the country’s
evolution to change its energy demand for fuel, but mainly because it uses a clean and renewable product which reduces
CO2 emissions and is in synch with the international objectives for the reduction of residues and sustainability.
Due to the world financial crisis of 2008, which has slowed down investments in the sector and has brought a shortage
of resources in the cane fields, added to El Niño (2009) and La Niña (2010) climatological effects , 2011 sees a decrease
in the supply of ethanol and sugar, bringing the international prices for these products to historic highs.
The price of the Brazilian bioethanol depends on the variations in oil trading, the world demand and supply of sugar and
the free trade policies between countries (since ethanol still needs to be classified as an international commodity). Due to
the 2008 crisis, the biofuels market undergoes moments of turbulence or it generates many risks and opportunities for
traders operating at the global level. This is a great advantage for Abengoa, due to their know-how in production,
logistics and destination in the main continents of the world. For the sugar market, the scenario looks favorable for the
next 2 or 3 years, since it is observed that the consumption of the global stock between 2008 and 2010 still needs
restructuring, and the great importance of Brazil in this markets causes the production decreases expected for the
country in 2011 to be directly reflected in the sugar global market.
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Sugar cane crops
2011 and 2012 have been marked by many changes in the regulation of ethanol in Brazil. The government has approved
a temporary measure that assigned ANP (Brazilian National Agency of Petroleum, Natural Gas and Biofuels) the
responsibility of regulating and managing the activities related to the production of biofuel, even ethanol.
With this, ANP created and continues preparing several resolutions for this activity as well as for the production of
ethanol, acquisition and commercialization of anhydrous ethanol, criteria to maintain stocks of anhydrous ethanol, and
others.
The sugarcane market is changing from a structural global deficit situation, which has defined the last four years, to a
surplus situation, with good production levels in the main exporting countries during 2012 and 2013.
The 2011 / 2012 worldwide harvest will achieve a global surplus of 5.8 Mt. It is expected to reach 6.9 Mt for the 2012 /
2013 harvest. This means that it is being possible to regain the levels of stock lost during the last years with the
subsequent impact of price drops, scenario which is expected to be maintained until the end of 2013.
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In terms of bioelectricity, the production of both plants is commecialized through regulated contracts, although the plant
of São Luiz has a sale license, which allows the company to use the energy as a complement upon lack of supply in any
of its plants, or allows negotiating at the spot market, based on price options that said market offers
New technologies
Abengoa Bioenergía Nuevas Tecnologías began its operations in 2003 with the purpose of positioning Abengoa
Bioenergía as the leading innovator in the Bioenergy industry. The mission is to develop leading edge technological
processes for the production of bioethanol and co-products.
Abengoa Bioenergía Nuevas Tecnologías prueve el uso de nuevas materias primas como fuentes de carbono y focaliza los
esfuerzos en los procesos de hidrólisis enzimática y catálisis.
Regarding the technology of enzymatic hydrolysis, the first commercial plant of bioethanol as from biomass is currently
being built in Hugoton (Kansas, USA) with a capacity to produce approximately 95 ML per year. This project is financed
by the US Department of Energy (DOE) and it is possible thanks to the company’s knowledge of the process and
operation previously generated in the pilot plant of York (Nebraska, USA) and the experimental plant of BCyL
(Salamanca, Spain).
In the field of catalysis, the company has developed two heterogeneous catalysts for the conversion of synthesis gas into
ethanol that exceed the previous state-of-the-art. The company has filed applications for two patents of these innovative
catalysts and a third patent for an innovative operation process. Finally, a technological package of this technology has
been developed for its commercialization. This research area also works on the development of proprietary catalytic
technology to produce butanol as from ethanol.
Upon constant evolution, in the starch-based ethanol production process, the laboratory and the pilot plant in York are
experimenting with the addition of new enzymes to increase the performance of the process in terms of liters of ethanol
per ton of cereal. During 2012, it was possible to reach a performance of more than 270 L per dry ton and the pilot
plant’s pretreatment stage to perform Acid Soaking has been modified.
Besides, Abengoa Bioenergy New Technologies conducts, along with Befesa, the “Waste to Biofuels” project. The
objective of this project is to develop a one-stop solution for managing Urban Solid Waste (USW) that allows, on the one
hand, more waste fractions to be used by converting into biofuels and energy and, on the other hand, providing a more
sustainable and efficient alternative for the final waste management by disposing at landfill sites.
Given its experience in the development of second-generation technologies for the production of ethanol through
enzymatic hydrolysis, Abengoa Bioenergy New Technologies undertakes, within this project, the R&D and engineering
activities related to the production of ethanol as from the organic fraction of USW.
In the area of sustainability, it is possible to highlight the conceptual design of innovative solutions together with the
development, maintenance and improvement of technological solutions within the RBSA standard. These technological
solutions allow demonstrating compliance with the requirements defined in the Renewable Energy Directive 2008/29/EC.
In addition, the company continues working on projects for the definition and improvement of systems for sustainability
management, strategic development and support in the interaction with stakeholders.
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Laboratory of Abengoa Bioenergy.
It should be noted that, as recognition to the work done in the development of the RBSA standard, Abengoa received
the Sustainable Biofuels Award in the category of Sustainable Bioethanol last March 14, 2012.
Thanks to the RBSA (RED Bioenergy
Sustainability Assurance) standard, which was
approved by the European Commission in July
2011, the biofuels produced by Abengoa can
be commercialized with the sustainable
certification throughout Europe, being a valid
emblem in each of the countries of the
European Union. Abengoa Bioenergy is
working on different projects in the area of
RBSA logo
raw materials. This interest is based on the fact
that the raw material represents from 60 % to
70 % of the biofuel production cost and between 30 % and 40 % of their life cycle greenhouse gas (GHG) emissions,
according to data of the Joint Research Centre. Up to now, the company has been working on the identification of
sustainable raw material at a global level and has studied the potential biomass supply around the facilities of Abengoa
Bioenergy in Europe. Besides, the company is working on the improvement of proprietary technological solutions that
allow tracing the raw material throughout the biofuel production chain, assign GHG emissions and verify other additional
sustainability criteria. Likewise, these solutions allow analyzing the most suitable raw materials in terms of sustainability
for the production of biofuels
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Another concept on which to focus the efforts is Biorefinery, with which products with a market value will be obtained
from biomass. The company working on the development of integrated concepts that combine first- and secondgeneration technologies, on the identification and selection of high value-added products to produce from biomass, and
integration of enzyme production and microalgae-based carbon capture facilities in bioethanol production plants.
The lines being worked on are the isolation and expression of the genes corresponding to enzymatic activities, isolation
and improvement of producer microorganisms, characterization and optimization of the enzymatic mixtures, optimization
of the operating conditions and increase in productivity. All this will lead to a reduction in production costs and reduction
in enzyme dosage.
Additionally, Abengoa Bioenergy New Technologies works to develop a process to fix carbon dioxide from the biofuel
plants through the growth of microalgae, which forms part of the biomass produced as raw material for the production
of biofuel and animal feed. At the beginning of 2012, we witnessed the successful completion of the construction and
commissioning of the Ecoalga experimental plant, annexed to the Ecocarburantes Españoles ethanol production plant
located in Cartagena (Spain). This is a facility where experimental tests are performed in order to validate the technoeconomic feasibility of the industrial production of microalgae integrated in plants for the production of bioethanol and
animal feed.
Current projects
Hugoton cellulosic ethanol plant
Abengoa Bioenergy New Technologies leads the execution of this project. The main objective is to build and operate the
95 ML capacity commercial hybrid plant for biomass to ethanol conversion.
The specific objectives of this project are the following:
Demonstrate the commercial feasibility of the biomass to ethanol conversion process.
Verify that the technologies developed can be adapted to current and future plants.
The subsidiary ABNT has been chosen to design, build and operate the large biorefinery experimental plant for the DOE
(US Department of Energy), whose subsidy partly funds the project. The biorefinery plant, which has started to be built, is
located in Hugoton, Kansas, USA, will have a minimum conversion capacity of 700 t/day and will use an enzymatic
hydrolysis process that will convert the biomass into ethanol, lignin and animal feed.
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BCyL biomass plant
The BCyL biomass plant is the first demonstration plant on a commercial scale in the world, continuously producing
ethanol gas from biomass through the enzymatic hydrolysis technology designed by Abengoa Bioenergía.
Abengoa Bioenergía has built the first biomass demonstration plant in the world to verify and optimize the technology to
convert biomass into ethanol. The construction of the Biomass Plant was completed in 2008 and, in 2009, the plant
began its operation reaching 1,525 operating hours. Since 2009, numerous tests were conducted to try different process
conditions and different enzymes, making up about 5,000 operating hours.
The operation of the biomass plant has allowed us to demonstrate that this technique is feasible technically y
economically and to optimize technology. With the operation of the BCyL biomass plant, Abengoa Bioenergía shows its
worldwide leadership in technology and business development of this important and continuously growing market. This
second-generation technology sets the foundations for the development of alternative technologies for the production of
chemical products from renewable sources such as the agricultural residues (grain straw, corn cob residues, etc.), through
the biorefinery concept
Biomass Plant , Biocarburante de Castilla y León (Babilafuente, Salamanca)
Abengoa Bioenergía Nuevas Tecnologías (ABNT) has formed part of the development of this project from the beginning,
first with the process engineering or basic engineering, providing its patented process technology, as well as the design
of the process engineering of the BCyL biomass plant. Once the construction of the plant is completed, Abengoa
Bioenergía Nuevas Tecnologías coordinates the operation of the plant and the optimization of the process.
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The main steps of the plant process are the following: Storage and preparation of the raw material, pre-treatment,
cellulose hydrolysis, fermentation of ethanol and ethanol recovery.
The lignocellulosic raw material, such as corn stover and wheat
straw, is first milled and cleaned and then pre-treated. The
pretreated biomass is digested by enzymes to release sugar
molecules, which will be further fermented by yeast giving rise to
ethanol and carbon dioxide. Ethanol is recovered in the distillation
process and marks the initiation of the commercialization of
ethanol from biomass that will lead to a sustainable growth and
benefit the environment.
Process block flow diagram of the BCyL biomass etanol plant.
The operation of the plant is generating a wide knowledge in
several fields: data of chemical consumptions and auxiliary
services is analyzed, process bottlenecks are detected, operating
conditions of the different stages are optimized, different process
configurations are tested to improve the yield and reduce
consumption. The knowledge acquired is being used in the design
of lignocellulosic ethanol plants on a commercial scale that
Abengoa Bioenergía will construct in the next years, allowing the
reduction of investment and having a success guarantee in the
operation of commercial plants. The operation of the BCyL
biomass plant is being used as a springboard for the development
and launching of competitive technologies for biomass conversion
that assure the company a sustainable and long-term growth
FP7 LED project
The Lignocellusic Ethanol Demonstration (LED) project, classified under the Seventh Framework Programme of the
European Commission, aims to design and build a biorefinery for the production of second-generation bioethanol from
grain straw and its use in public fleets, as well as the improvement of enzymes involved in cellulose hydrolysis and the use
of the lignin contained in the raw material in high value-added products.
This project is coordinated by Abengoa Bioenergía Nuevas Tecnologías and has the participation of another four
companies from different countries: Green Value, of Switzerland, TNO, of Holland, Communauté d'Agglomération of the
Pau-Pyrenées (CDAPP) and Communauté de Communes of Lacq (CCL) of France.
The LED project assumes the continuity in the technological development necessary to commercially develop the
industrial production of second-generation ethanol. In this path, Abengoa Bioenergía has covered milestones as
important as the construction of a demonstration plant with a production capacity of 5 MMl/year located in Babilafuente
(Salamanca, Spain) and that was already supported by the Commission within its V PM.
The LED project was financed through the Seventh Framework Programme for Technological Research and Development.
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FP7 BIOFAT project
The BIOfuel From Algae Technology (BIOFAT) project, awarded recently in the notification of the Seventh Framework
Programme, sets out to demonstrate the viability on an industrial scale (10 ha) of the production of biofuels from algae,
suggesting the selection of the most productive stock, it will proceed to the biological optimization of culture media and
to the improvements in algae harvesting techniques, always bearing in mind the energy use and technological
integration.
For this it will use the Biorefinery concept, bearing in mind the valuation of the fractions of algae biomass for producing
biofuels. ABNT is leading the project in which there are eight other partners, forming an international consortium from 7
different countries: Spain, France, Israel, Italy, the Netherlands and Portugal, in which there are members from the
academic, industrial and public sectors, such as the University of Florence, A4F-AlgaFuel, the University of Ben-Gurion,
Fotosintetica & Microbiologica, Evodos, AlgoSource Tecnologies, IN SRL and Hart Energy.
The BIOFAT project was financed through the Seventh Framework Programme for Technological Research and
Development.
FP7 Demcamer project
The DEMCAMER project "DEsign and Manufacturing of CAtalytic MEmbrane Reactors by developing new nanoarchitectured catalytic and selective membrane materials" classified under the Seventh Framework Programme, includes
multidisciplinary participation for the development of catalyzers and membrane reactors in the fields of autothermal
reforming (ATR), Fischer-Tropsch synthesis (FTS), Water Gas Shift reaction (WGS), and in the oxidative coupling of
methane (OCM). The main purpose of the project is the improvement of well known catalytic chemical processes through
the application of membrane reactors to make them more efficient and sustainable.
The project is coordinated by the Tecnalia Foundation and has partners of international recognition from both industry
and research,
ABNT participates as an industrial partner to evaluate the membrane technology for the Fischer-Tropsch synthesis, a
process of vast application in the field of Biofuels.
The DEMCAMER project is a European project subsidized through the Seventh Framework Programme for Technological
Research and Development.
Nemesis project
The final objective of the Nemesis 2+ project is the development, at small scale, of the hydrogen generator prototype as
fuel in a system capable of producing 50 Nm3/h of H2 from diesel and biodiesel. The project aims at dropping hydrogen
production costs, reducing investment, maintenance and operation expenses and, at the same time, increasing efficiency
and reliability of the system.
This project benefits from the participation of other seven companies from different countries: Deutsches Zentrum für
Luft- und Raumfahrt e.V. (Germany), HyGear B.V. (the Netherlands), Johnson Matthey PLC. (United Kingdom),
Hynergreen Technologies S.A. (Spain), Centre for Research and Technology Hellas (Greece), Instituto Superior Técnico
(Portugal), Abengoa Bioenergy San Roque, S.A. (Spain).
The Nemesis 2+ project is subsidized by the VII Framework Program for the Technological Research and Development.
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Cenit SOST-CO2 project
The SOST CO2 project, New Industrial and Sustainable Uses of CO2, is a project financed by the Cenit program of the
CDTI, whose objective is the development of sustainable industrial applications for the use of carbon dioxide generated in
industry. The solutions being dealt with include all the areas of the current industry: chemical, energy, renewable
energies, food, services, etc.
The project is led by Carburos Metálicos and the public private mixed center (Carburos Metálicos, CSIC, UAB) Matgas,
and the consortium made up of 16 companies is formed by some of the main national companies, such as Repsol,
Iberdrola, Agbar and Ros Roca, as well as several small technology-based companies. The number of research groups that
collaborate reaches 28. The total budget of the project reaches 26 million Euros.
The activity of ABNT within the project focused on developing conversion and valuation applications for the carbon
dioxide generated in their ethanol fermentation processes. These processes are the catalytic conversion of CO2 in
products and the increase and refining of microalgae for the production of biofuels and other products.
Cenit BioSos project
The Cenit BioSos project (Sustainable Biorefinery) is to cover the entire biomass value chain, from resource generation to
final market products, with special attention to the development of studies and tools for ensuring sustainability of the
solutions developed.
The objective is the development of technology that allows the design of innovative and integrated biorefinery processes,
both for energy production and synthesis of bioproducts, including the analysis of the economic, environmental and
social impacts of the alternatives proposed.
Cenit BioSos, with a total budget of more than 27 million Euros, is divided into 5 large blocks with specific objectives:
Raw materials
Sugar platform
Gas platform
Bioproducts
Environmental, Social and Economic Sustainability
Abengoa Bioenergía Nuevas Tecnologías leads the consortium that is taking part in this project. This consortium consists
of 14 companies, among which there is representation of very diverse sectors and backgrounds. As regards the sizes,
there are large companies, or companies from large groups, such as ABNT, Acciona Azvi, Guascor, Green Source (Sniace),
Carburos Metálicos, Técnicas Reunidas, Ecocarburantes Españoles, small technology-based companies, that provide a
high technical level the group, such as Neuron and Biópolis, and highly specialized medium-sized companies such as
Gairesa, Industrias Omar, Krafft, Solintel. Within this consortium there are two companies classified as SMEs.
The Obscenity BioSos project is subsidized by the CDTI and supported by the Ministry of Economy and Competitiveness
(Local investment fund for employment- Government of Spain).
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Bio-Andalus project
The objective of the Bio-Andalus project is the experimental development of production processes for high added value
biofuels and functional biomaterials through innovative and very efficient technologies as well as through the assessment
of side currents from the biofuel production process.
The production of these products will be possible thanks to the development of technologies that allow a more efficient
recovery of sugars mainly from lignocellulosic biomass and from other sources of carbon. This would imply an
improvement in terms of sustainability of the processes involved by virtue of the raw materials used.
The products obtained will reach a pre-commercial development stage during the project, which will allow the final
definition of its possible inclusion in the market. Last, it is intended to develop a pre-commercial prototype of a tool that
identifies the points to address for processes to comply with the sustainability requirements defined in the last EU
Renewable Energy Directive RED 2009/28/EC, as well as the certification, not only of the raw materials used but also of
the product obtained.
Abengoa Bioenergy New Technologies coordinates this project which will be addressed by a multitasking consortium of
seven companies in the Andalusia region, among which there are large companies or those belonging to large groups
offering consistency to the project and small and mid-size companies with solid technological and scientific foundations.
The large companies of the Consortium, ABNT and Azvi, will have a tractor effect on S&MEs such as Neuron, Pevesa,
Canagrosa, DMC Research Center and Biomedal. In turn, the project is reinforced by the participation of Andalusia
research entities such as the University of Seville, the Association of Research and Industrial Cooperation of Andalucía
(AICIA - Asociación de Investigación y Cooperación Industrial de Andalucía), the Advanced Technology Center for
Renewable Energy (CTAER - Centro Tecnológico Avanzado de Energías Renovables), the National Renewable Energy
Center (CENER - Centro Nacional de Energías Renovables), the University of Granada, the University of Cadiz and the
University of Jaén. Last, and in order to cover the areas where there are no specific skills in Andalucía, the following
entities located in the national geography also take part in the project: INBIOTEC - Research and Technology Centre,
University Rey Juan Carlos and CEMITEC.
The Bio-Andalus project is funded by the CDTI (Center of Industrial Technological Development) and IDEA (Agency for
Innovation and Development of Andalusia).
PlanE ECOALGA project
The purpose of the project "Initiative for the development of microalgae production systems with bioenergetic and CO2
capture purposes (ECOALGA)" is the design and construction of a pilot plant for the evaluation of the cyanobacteria and
microalgae production technology as a raw material for the production of biofuels and animal feed, as well as for the
fixation of CO2 from fermentation during the production of bioethanol.
The project will be developed on land owned by Ecocarburantes Españoles next to the ethanol plant, whose CO2 from
grain fermentation during ethanol production will be the carbon source for the production of algae.
The following different research/University centers take part in the project:
The National Center for Renewable Energies (Biomass Department)
The Department of Chemical and Environmental Engineering of the Polytechnic University of Cartagena.
The Department of Animal Production of the Veterinary Faculty of the University of Murcia
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The Research Foundation of the University of Seville
The ECOALGA project (2010-2011) is undergoing the construction stage, having provided for the commissioning of the
plant during this same year.
The ECOALGA project received financing from the Ministry of Economy and Competitiveness, under the National Plan for
Scientific Research, Development and Technological Innovation 2008-2011, managed by the Spanish Institute for
Oceanography, under the protection of the State Special Fund for Promoting the Economy and Employment, Plan E.
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Lines of development
Waste to Biofuels project
The objective of the “Waste to Biofuels” project is to develop a one-stop solution for managing Urban Solid Waste (USW)
that allows, on the one hand, more waste fractions to be used by converting into biofuels and energy and, on the other
hand, providing a more sustainable and efficient alternative for the final waste management by disposing at landfill sites.
The W2B project framework includes all the research, development and innovation (R&D+i) stages, from laboratory
research oriented to the improvement and optimization of biofuel pretreatment and conversion processes to validation of
the technology at pre-industrial scale and integral design of the commercial plant.
The main milestones achieved within this project are:
Completion of the annual classification of the USW coming from the Torija (Guadalajara) transfer center in order
to determine its seasonal composition.
Completion of the first USW pre-treatment tests and working on the improvement of pre-treatment in order to
increase the quality of its fractions.
Determination in laboratory that the conversion of the USW organic fraction into ethanol is possible and R&D
plan launched for process optimization.
Reached more than 50 % of the progress in the works regarding the modification of the Salamanca
experimental plant required for further validation of ethanol production as from USW.
Completion of the basic engineering package in terms of the main areas of the commercial production plant of
ethanol as from USW.
Waste to Biofuels (W2B) general scheme
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Our activities
Abengoa Bioenergy promotes the transformation of the existing experimental plant for production of second-generation
ethanol as from lignocellulosic biomass into the use of organic fiber from domestic waste as raw material.
Domestic waste will be received at the experimental plant. This waste will be cleaned and separated, and classified into
the different components: ferrous, non-ferrous, aluminum, plastic, textile and organic fiber. The organic fiber will be
processed at the biomass experimental plant for the production of second-generation ethanol. This project is known as
Waste to Biofuels (W2B) and the main milestones achieved in 2012 are the following:
Execution of the basic engineering to adapt the Babilafuente biomass experimental plant to a new raw material
such as organic fiber coming from domestic waste. W2B project.
Execution of the detail engineering and beginning of works regarding modification for the W2B project.
Programa Process en Abengoa Bioenergy of Kansas
Biomass plant . Biacarburantes Castilla y Leon, Babilafuente. Salamanca
Abengoa Bioenergy of Kansas Process Program
Abengoa Bioenergy Biomass of Kansas (ABBK) is an Abengoa Bioenergy company that will manage the new biorefinery
in charge of the conversion of biomass into ethanol, located in Hugoton, Kansas (KS).
The project is designed to process more than 300,000 dry tons of agricultural waste per year. Agricultural waste includes
materials such as corn stubble (stalks and husks) and wheat straw. This type of materials is not normally used; however,
using an innovative process of enzymatic hydrolysis, the waste material decomposes into sugars that allow fermentation
and production of sustainable ethanol.
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It is expected that the plant will replace the consumption of more than 60 ML of gasoline per year and, in doing so, it will
reduce the CO2 emission of 139,000 t to the atmosphere. The hundreds of jobs that will be created with this project will
generate an annual income of approximately 5 M$ in United States. Besides, the project provides a new market for
producers of farms in Kansas and, thus, it benefits considerably the local areas and the state altogether.
The construction of the commercial scale biorefinery facility, which is one of the “first of a kind” in its gender, will allow
ABBK to use its patented technology that has been developed and tested over the last ten years to produce renewable
liquid fuel from earth’s most abundant organic raw material source: plant fiber or cellulosic biomass.
Summary of the ABBK project:
The biorefinery, which will be fueled 100 % by biomass, will produce around 95 ML of ethanol per year, derived
from almost 300,000 t of biomass and it is expected to reach its maximum production towards the beginning of
2014.
The plant will use approximately 900 dry tons of biomass per day in the ethanol production process.
The combustion of the process’ residue will be sent to the biomass boiler to produce 21 MW of electricity. This
power will make the entire facility to be of low consumption and environmentally friendly.
The project is under full construction phase and the process engineering group is supporting detail engineering,
construction and preparation for start-up.
Besides, the process engineering group continues collaborating with ABNT Process R&D and Biochemical
developing the tests for ABBK validation.
The project is designed to process more than 300,000 dry tons of agricultural waste per year. Agricultural waste includes
materials such as corn stubble (stalks and husks) and wheat straw. This type of materials is not normally used; however,
using an innovative process of enzymatic hydrolysis, the waste material decomposes into sugars that allow fermentation
and production of sustainable ethanol.
It is expected that the plant will replace the consumption of more than 60 ML of gasoline per year and, on doing so, it
will reduce the CO2 emission of 139,000 t to the atmosphere. The hundreds of jobs that will be created with this project
will generate an annual income of approximately 5 M$ in United States. Besides, the project provides a new market for
producers of farms in Kansas and, thus, it benefits considerably the local areas and the state altogether.
Abengoa Bioenergy of Kansas .Hugoton plant, Kansas
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Biobuthanol
In order to diversify the portfolio of products manufactured in the first-generation plants, Abengoa Bioenergy focuses
part of its efforts on research and definition of the biobutanol production technology.
Butanol, with molecular formula C4H10O, is a product with a wide use in the chemical market, expecting it to penetrate,
in the long run, the biofuel market where, besides, it is intermediate for the production of aviation biofuel.
Production of butanol is mainly performed through a catalytic process as from petrochemical derivatives and another
small portion through a bit inefficient fermentation of sugars. Abengoa Bioenergy, committed to the development of
renewable energy, supports the catalytic production of biobutanol as from bioethanol that is completely new and more
efficient.
The petrochemical butanol is mainly generated through the oxo process, where propylene reacts with carbon monoxide
and hydrogen forming a normal and isobutyraldehyde mix, which ratios depend on the catalyst and operating conditions.
Then, these two isomers split and hydrogenate in order to form, as primary products, the normal and isobutanol. There
are several ways to produce biobutanol by sugar fermentation although they are less developed.
Abengoa Bioenergy is developing the catalytic production of biobutanol as from bioethanol. The definition of the
production technology, where the catalyst has a leading role, gives the project an innovative and unique character in the
world.
Ethanol to biobutanol reconversión process
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Biotechnology
Enzymes
Abengoa Bioenergía has a license from Dyadic for the use and modification of an organism that produces enzymes
necessary for the conversion of cellulose into sugars and which therefore, control a critical and necessary step in
enzymatic hydrolysis technology.
Abengoa Bioenergy has a highly qualified team of engineers, chemists and biochemists who are working on the
development of this technology, tackling both the aspects regarding the adaptation of the organism to the production of
the optimum enzymatic cocktail, and the fermentation process necessary for its industrial procurement. The pilot facilities
of York and BCyL demonstration plant are critical for the development of enzymes and allow Abengoa Bioenergía to
have a test base unique on a global level.
Currently, the enzyme cocktail presents a saccharification power similar to that of other commercial solutions in the
market. Abengoa Bioenergy continues working on the qualitative improvement of this cocktail and on the validation of
its production at industrial scale in order to guarantee an efficient enzyme supply to start the operation of the Hugoton
industrial plant.
This solution, included within the technology of enzymatic hydrolysis, has been developed by Abengoa Bioenergy in order
to be used both in its facilities and in third-party plants relying on this process to introduce bioethanol.
Bioproducts
Abengoa Bioenergy has a unique platform for the production of sugar in its current facilities and in the second
generation facilities that it is promoting. Currently, Abengoa Bioenergy is developing innovative technologies through
microorganisms in order to be able to produce several compounds as from sugars. Likewise, Abengoa Bioenergy, aware
of the industrial value that these solutions present, is developing several mechanisms for the intellectual and industrial
protection of these technologies, generating a solid consortium of patents to be applied to the different production
scenarios of Abengoa Bioenergy. Through this program, it aims to increase the added value of our plants through the
new products obtained from those that, in the coming years, are expected to replace a large part of the oil derivatives in
a sustainable and economically competitive way compared to the traditional fossil routes.
The incorporation of bioproducts in the production of our plants allows us to open a new field of applications with
diverse final uses, both in the chemical sector (large tonnage commodities, fine chemical products, biomaterials with new
properties for plastic applications, construction, etc.) and in the energy sector (advanced biofuels, specially for their use in
the aviation industry) where innovation plays a vital role to achieve leadership in the use of the technologies chosen.
Our R&D capabilities, both in the process and in the biochemistry areas, have demonstrated their capacity to develop new
technologies and represent a solid base for the success of this program.
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Guaranty of activities
The call to serve, a sign of identity in the development of all activities, has led the company to implement the Integrated
Management System (S.G.I.) throughout the business group companies. This overall quality, environmental and health
and safety approach covers and guarantees concerns and demands of all interest groups: investors, partners, clients,
employees, suppliers and the community.
Quality
Quality at Abengoa Bioenergy is a basic management pillar for sustainability. Therefore, a process-by-process approach
has been implemented, including the entire value chain, from raw material supply, through processing and the client, to
end consumer. These aspects have been developed in order to have the capacity to achieve quality standards in end
products, higher than those demanded by clients and current legislation. This is possible thanks to the continuous
improvement of processes, resulting from the implementation, among others, of the Six Sigma methodology.
As operation standardization and management guarantee, business group companies are certified under the ISO9001:2000 international standard; in addition, the company has began the implementation of the EFQM Excellence
Model throughout the business group companies to continue improving.
Risk management systems
The risk management structure of Abengoa Bioenergía, as a subsidiary of Abengoa, is based on three fundamental
pillars:
Common management systems, wich are used to mitigate business risks.
Internal control procedures on the elaboration of financial information designed in accordance with the SOX
(Sarbanes-Oxley Act), to mitigate the risks associated with the reliability of financial information.
Abengoa’s Risk Universal model, which is a methodology that quantifies the company’s risk exposure through a
dynamic system of impact and probability indicators. This tool helps managing, identifying, mitigating and
monitoring business-related risks.
These elements constitute an integrated system which enables an appropriate risk and control management at all levels
of the organization. It is a live system which undergoes continuous modifications to be kept in line with the reality of the
business.
Once again, the company has put the internal control system through an independent evaluation system in accordance
with the PCAOB audit regulations.
Abengoa Bioenergía has voluntarily implemented and audited SOX in accordance with PCAOB audit regulations, which
apply to companies trading in the USA stock exchange market and, additionally, has a risk management system whose
design and implementation is in accordance with ISO 31.000 and has been validated by an external auditor.
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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.
Las distintas sociedades de Abengoa Bioenergía han implementado un Sistema de Gestión Integrada de la Calidad,
Medio Ambiente y Prevención de Riesgos Laborales (ISO 9001, ISO 14001 e OHSAS 18001). Mediante la implementación
de dicho sistema y en conjunto con el proceso de educación a los colaboradores se pretende reducir, cuando no eliminar,
el número de accidentes y la gravedad de los mismos, así como desarrollar acciones de mejora continua en materia de
prevención.
Sostenibilidad
The rational use of natural resources and conservation of the environment are the tools currently available in order to
build a more sustainable world. For Abengoa Bioenergy, such sustainability is based on two principles, first, the
development of technologies serving to provide clean sources of energy, and second an impact on social commitment
and environmental education.
Abengoa Bioenergy carries out industrial production activities in the energy sector. It develops biofuels for transportation,
as well as bioethanol and biodiesel among others, plus chemical bioproducts which use biomass (cereals, sugar cane,
cellulose biomass, oleaginous seeds, etc.) as raw material. Biofuels are used in the production of gasoline additives (ETBE)
as well as in direct mixtures with gasoline or diesel oil. Abengoa Bioenergy is also developing new biofuels (kerosene for
aviation and biodiesel from sugar). The chemical bioproducts will be identical to those produced at present by the
petrochemical industry in terms of functionality but, in turn, they will be more sustainable and will focus on immediate
replacement within the already existing markets.
As sources of renewable energy, biofuels and chemical bioproducts reduce CO2 emissions and enhance the safety and
diversification of the energy supply, thus decreasing the dependence on fossil fuels used in the automotive, aviation and
petrochemical industries and improving compliance with the Kyoto Protocol.
On the other hand, Abengoa Bioenergy devotes a part of its efforts and resources to support activities that have an
impact on the improvement of quality of life and training of individuals.
Sustainable Development Policy
In Abengoa Bioenergy we hold as our primary objective to become a reference as a world leader in the production of
biofuels, and the development of innovative technological solutions that contribute to the sustainability of the
transportation sector and in the production of bio-based chemicals. The only possible way to attain such a goal is to carry
out all our activities strictly following the basic foundations of sustainability:
Respect towards the environment
Social development
Economical benefit
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To comply with the above principles, within Abengoa Bioenergy we define these sustainability indexes in our Mission,
Vision, and Values, which cover and rule all our activities:
Creation of Value
Raw materials certification
Reduction of GHG emissions
Personal and Professional development of all employees
Efficient use of natural resources.
From an environmental point of view, Abengoa Bioenergy contributes to society mainly through biofuels. They are a
renewable source of fuels, which, bearing in mind their life cycle, imply saving greenhouse effect gas emissions and favor,
therefore, global warming reduction. In addition, the company conducts a strict environmental control on the
development of its activities, not only based on emissions control, but on all possible impacts of environmental
externalities. Therefore, facilities are designed from the beginning of the projects addressing the effect of the location on
biodiversity, conducting the corresponding environmental impact assessments and optimizing the use of natural
resources and energy. During its life, productive centers are furnished with facilities that enable strict control, cleaning
and dumping reduction, the latter being the focus of most of the efforts on achieving maximum reutilization of natural
resources.
To ensure the environmental management system, companies are certified under the ISO 4001:2004 standard,
maintaining an open and transparent communication with local authorities.
Social corporate responsability
As a leader in the development of sustainable solutions for transportation and according to the mission, vision and values
of the company, Abengoa Bioenergía is developing a huge effort to find and develop more sustainable solutions for the
transportation sector. Since its birth, the company has focused its strategy on the development of technologies that
contribute to Sustainable Development, among which are:
Production of biofuels from lignocellulosic biomass.
Development of alternative technologies for the generation of renewable electricity.
Development of systems for producing lignocellulosic biomass under sustainable schemes, avoiding deforestation
and the use of high biodiversity areas.
Demonstration projects of hybrid production systems to bring the technology to commercial scale.
Improvement of the life cycle of the facilities and production processes, increasing CO2 emissions savings in the
transport sector.
Development of their own certification Standard (RBSA) to demonstrate the sustainability of the biofuels
produced - this Standard was approved by the European Commission in July 2011.
The main objective is to be a reference as a world leader in the production of biofuels, developing innovative solutions
and advancing in the technology of biorefinery, basing all activities on respect for the environment, social development
and economic sustainability.
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Introduction and Adaptation of GHG Emission Control Systems
Abengoa Bioenergía champions that the use of biofuels in transportation can lead to meaning a reduction of up to 85%
of GHG emissions in comparison to fossil fuels. Therefore biofuels are clearly beneficial for the environment due to their
lower GHG emission grade.
With the aim of fully evaluating the decrease in emissions, improving the sustainability of the products and counting all
the GHG emissions related to the global activities of the company, in accordance with the strategy of Abengoa, it has
undertaken an ambitious emission control plan related to each aspect of the products and raw materials used and
manufactured in all plants and offices worldwide.
To this end, we have teams of people and managers especially for coordinating and performing the adaptation of the
accounting and financial systems to this new requirement; and a great conciliatory job is being carried out so that all
suppliers, without exception, incorporate into their deliveries a GHG emissions report associated to their products. This
report reflects both the consumption of energy from different sources used for the manufacture of the product and the
raw materials used, the distance covered and the mode of transport used from production to delivery.
Control de vagón cisterna
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Our stakeholders
Our stakeholders
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Our stakeholders
Our shareholders
Abengoa Bioenergía, S.A. was incorporated on May 20, 2002, its capital stock represented by 1204 registered shares
with a face value of 50.00 Euros each, with 1203 shares being subscribed by Abengoa, S.A. and 1 by Sociedad Inversora
en Energía y Medio Ambiente, S.A. (a company fully owned by the former).
On September 19, 2002, the General Shareholders Meeting unanimously agreed upon the transformation of the
company from a Corporation into a Limited Liability Company. Later, Abengoa, S.A. decided to group all the investments
related to biofuels under the company name of Abengoa Bioenergía, to which end:
On December 16, 2002, the capital stock was increased by 119,756,050.00 Euros by means of a non-monetary
contribution consisting of shares which Abengoa, S.A. held in different companies. Sociedad Inversora en Energía y
Medio Ambiente, S.A. did not subscribe in this rights issue, which was fully taken up by Abengoa, S.A
On December 31, 2002, the capital stock was again increased by 29,705,550.00 Euros through a non-monetary
contribution consisting in shares which Sociedad Inversora en Energía y Medio Ambiente, S.A. held in different
companies. Abengoa, S.A. did not subscribe in this rights issue, which was thus fully taken up by Sociedad Inversora en
Energía y Medio Ambiente, S.A.
On January 1, 2004, the General Shareholders Meeting unanimously agreed upon the transformation of the company
from a Limited Liability Company into a Corporation, agreement that was registered in the Mercantile Register Office of
Seville on October 7, 2004, from when it has kept the name of Abengoa Bioenergía, S.A.
The communication with shareholders takes place regularly within the context of Abengoa S.A.'s actions and through the
information channels established for this purpose. The corporate website (www.abengoabioenergy.com), published in
Spanish, English and Portuguese, is an excellent tool to communicate with all stakeholders, including shareholders. With
its constant updating, it gathers all the relevant information in order to keep shareholders and other stakeholders fully
informed at all times.
Our employees
Professional development
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 is
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.
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Our stakeholders
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.
In 2011, at Abengoa Bioenergy, the company staff was formed by 4.605 employees, distributed in three geographical
areas where it operates, USA, Europe, and Brazil.
:
Employees 2012
Region
Nº of employees
Europe
622
United States
361
Brazil
4.960
Total
5.943
Code of conduct
As an Abengoa subsidiary, at Abengoa Bioenergy abides by the same code of conduct as its parent company (see
http://www.abengoabioenergy.com).
This code’s principles are based on:
Requires the highest standards for honest and ethical conduct, including proper and ethical procedures for
dealing with actual or apparent conflicts of interest between personal and professional relationships;
Requires full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed or
submitted by Abengoa with governmental agencies or in other public communications made by Abengoa;
Requires compliance with applicable laws, rules and regulations;
Addresses potential or apparent conflicts of interest and provides guidance for employees, officers and directors
to communicate those conflicts to Abengoa;
Addresses misuse or misapplication of Abengoa’s property and business opportunities;
Requires the highest level of confidentiality and fair dealing within Abengoa and outside Abengoa; and
Requires prompt internal reporting of violations of this Code of Conduct and proper reporting of any illegal
behavior.
Occupational Health and Safety
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.
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Our stakeholders
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.
Among them, the Fire Brigade course should be highlighted, offering first and second intervention staff sufficient skills
and knowledge in case of emergency.
As part of the skills development process, workers are trained to help Occupational Health and Safety teams in
emergency situations, first aid, firefighting, 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 to reduce and to eliminate, 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.
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Our stakeholders
Our costumers
The management systems established, in accordance with international standards and internal requirements as described
in the specifications defining how to assess the maturity of these systems, lay down the need for the introduction of
structures to measure customer satisfaction, capable of analyzing customer needs and expectations. In order to assess
customer satisfaction, satisfaction surveys are regularly conducted, these being handled by the plant quality departments.
These surveys are not annual, given the nature of the actual business, but rather are performed at set intervals depending
on the company's strategy and objectives.
Durante el ejercicio 2011 se presentaron los resultados de las encuestas de satisfacción de clientes, que nos llevaron a
implementar nuevas acciones de mejora para seguir avanzando en nuestra sistema de calidad y servicio a nuestros
clientes. Las encuestas se realizaron a 9 clientes del portfolio de Abengoa Bioenrgía en Europa: BP, Carrefour, Cepsa,
Ecofuel, Lyondell, Repsol, Total, Siplec y Shell.
This analysis concludes by establishing specific action plans and objectives in order to meet expectations and to improve
customer satisfaction. The company's senior management also takes this into consideration when establishing and
defining the strategy at each company.
Comunication
A service vocation is one of the aspects which Abengoa Bioenergy considers to be of vital importance. It therefore
establishes direct channels of communication between the technical and commercial departments and customers with
the aim of establishing a close relationship, thereby allowing it to receive any relevant comments and suggestions.
One of the aspects most highly valued by customers is product quality, as a result of the strict controls applied to raw
materials prior to their arrival at the plant, with regard to strict compliance with the applicable quality parameters, in line
with the regulations in force, throughout the supervision of processes, stored products and, ultimately, the batches
released. All this goes hand-in-hand with strict compliance with contracts, ensuring that Abengoa Bioenergy is a byword
for reliability in all regards.
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Our stakeholders
Costumers list
Europe
Bioethanol Europe
BP, Shell, Total, Repsol, Cepsa, Lyondell, Ecofuel, Greenenergy, ConocoPhillips, Exxon Mobile
Biodiesel
Cepsa.
DGS Europe
Nutreco, Nuter Feed, Arkady Feed, Glon Sanders, Cefusa, Sud Ouest Aliment, Nanta, Piensos Unzúe, Cefetra, Avigase,
Delagro, R&H Hall, De Heus, Evialis France.
Glycerin Europe
Nutreco, Cegeco, SAT Alia, EDF&Man, Piensos Juan Jiménez, Covap, Loiret & Haentzens España, Gavilón, IPSpecialities y
a Ukrechemresource
Cogeneration Europe
Energía descargada directamente a la red.
Abengoa Bioenergía asiste a la inauguración de mezcla directa de etanol en las instalaciones de un cliente en Europa.
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Our stakeholders
United States
Bioethanol United States
BP, Shell, Valero, Chevron, Marathon, PPC, Exxon, Flint Hills, Delek Refining.
DGS United States
Cargill, Gavilon, Scoular, Adams Land and Cattle, ADM, The Rice Co., Delta Oil Mill, CGB,Tyson y Pilgrim's Pride
Bioethanol wagon in Abengoa Bioenergy Corporation
Brazil
Bioethanol Brazil
Petrobrás, Cosan, Ipiranga, Shell Brasil, Eldorado Combustíveis Ltda, Raizen São Paulo, Fera Lubrificantes Ltda.
Sugar Brazil
Sucden Suderes Et Denrees, Noble Américas Corp, Agrograin Ltda Sucursal Uruguay, Cargil Agrícola AS Turks & Caicos,
Czarnikwow, Copersucar Trading A.V.V., Bunge London.
Cogeneration Brazil
Eletrobrás, CCE E, CEMAR-MA, COSERN, ESCELSA, RGE, Ligth, Elektro, Celpe, CEAL, Celg, Bandeirante Energia S.A.,
CPFL Santa Cruz, , CPFL Piratininga, Companhia de Energia Elétrica ‟ Palmas, Eletropaulo, Cemig.
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Our stakeholders
Our suppliers
The base of the Purchases strategy is focused on the direct integration of the suppliers in the operations through the
application of their experience and technology. The implementation of the best solutions proposed by the suppliers
enables us to minimize risks, optimize costs and deadlines.
All of the contracts and investment agreements with out suppliers and distributors include clauses that have been
analyzed in the area of human rights.
Guidelines
Six basic guidelines define the relationship with suppliers and reinforce the Procurement strategy:
Outsourcing
Leadership
Globalization
Local development
Integration
Quality
Oursourcing
The outsourcing of the services identified as supplementary to production guarantees the maximum optimization of
operations. Outsourcing allows the company to concentrate on improving the knowledge in key activities, increasing the
performance of the business, incorporating the most professional service through the direct involvement of the supplier
in day-to-day operations. Services such as labor specialized in the different areas of maintenance and utilities, as well as
the supplies and application of critical products, are among the sectors subjected to outsourcing due to the specific
experience, technology and training required.
Leadership
The continuous quest and the contracting of the leading suppliers in their sector guarantees innovative improvement
solutions with an important technological component, which allows maintaining competitiveness and quality. The supply
of critical products and the maintenance of essential units draw on suppliers of well-known success and proven
experience.
Globalization
All purchases are subject to globalization. The contracting of shared suppliers in the different production centers allows
incorporating the most developed and homogeneous service with standardized scopes that offer a corporate procedure
and a balanced growth across the various production plants. These synergies facilitate the application of global solutions,
which result in a cost optimization both in management and in the development of the service and supplies.
Local development
In turn, the fact of focusing on the development and involvement of local suppliers guarantees the coverage of the most
elementary and basic needs, with the consequent flexibility in the consumption volumes and response times thus having
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ABENGOA BIOENERGY
Our stakeholders
a positive impact on commercial and industrial growth in the geographical areas of operation, guaranteeing a close and
social relationship.
Integration
The integration of suppliers' improvement proposals allows the continuous enhancement of productivity and
performance. Result-based pricing is a fundamental principle of business commitment. This commitment will also include
the integration in the Environmental Safety Policy, the respect for Human Rights and the business ethics.
Quality
The quality of our providers is a key factor in ensuring that the services and supplies received by our production plants are
in accordance with the expected levels. From Purchases, in collaboration with Quality and HR, a series of systematic
visits/audits to providers take place each year to review aspects of the Social Corporate Responsibility and Sustainability,
Quality, Purchases, traceability and product control, as well as logistics of the latter to ensure appropriate management
and supply to the customer.
Social responsibility and sustainability
Since June 2008, Abengoa Bioenergy, as part of the sustainability policy of Abengoa and all its business groups, requires
its suppliers, including raw material suppliers, to sign a Code of Social Responsibility (CSR) based on international
standard SA 8000, made up of 11 clauses. Through adhesion to this CSR, Abengoa Bioenergy promotes among its
suppliers the observance and compliance with the established social and environmental regulations and compliance with
all aspects of social responsibility set forth in the Global Compact, covering the company's entire productive processes,
and thereby imposing an obligation on suppliers to sign up to said code in writing.
Abengoa has implemented an inventory of GHG (greenhouse gas) emissions, therefore we request our clients to submit
the emissions derived from the products / services acquired / contracted. Day by day we continue focusing on the
continuous improvement in the sustainability field, thus, we still require from our suppliers their commitment in this
sense.
Community
Abengoa Bioenergy benefits the communities where it operates both economically and socially. However, such benefits
would both be useless if they do not respect the environment. In its desire to protect the environment, Abengoa
Bioenergy works to minimize the environmental impact of its industrial activities chiefly in three areas:
„
„
„
Natural resources.
Controlling and reducing generated emissions and waste.
Protecting the biodiversity of the areas where it operates.
Natural resources
Abengoa Bioenergy protects natural resources where it operates through the production and trade of renewable
products, the control and reduction of the generated emisions and residues, and the protection of biodiversity.
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Our stakeholders
Conferences
World Biofuels 2012
For the eleventh consecutive year, on May 2012, the World Conference on Biofuels “World Biofuels 2012” was held at
the Hospital de los Venerables, headquarters of the Focus-Abengoa Foundation in Seville.
Jose B. Terceiro in 2012 World Biofuels Conference
This cycle, defined in the Focus-Abengoa Forum on Energy and Climate Change, has become a reference forum among
experts of the biofuel and biodiesel sector of the main global markets. During the conference, participants went over the
main changes and advances in the sector during the last year, highlighting the major advances that have been developed
in this field mainly in United States and Europe. They also studied the possible legal amendments that current markets
require and they debated on the challenges and goals set for the next years, especially through bioproducts.
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The world conference on biofuels “World Biofuels 2012” aims to promote, through public discussions, a genuine open
platform for the research, presentation and debate of ideas and results through those actions that are deemed to be
appropriate at any given time based on the nature of the issues to be analyzed.
2012 Biomass Conference
Abengoa Bioenergy also took part in the 2012 Biomass Conference event, held on July 2012 in Washington, D.C.
Approximately 700 members of the advanced biofuel industry, scientists, academicians and other participants assisted to
the event sponsored by the US Department of Energy (DOE). More than 80 speakers shared the last progresses in
advanced biofuels.
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Interaction with the community
Abengoa Bioenergy promotes and carries out general interest activities and actions centered on educational, cultural and
scientific work. Abengoa Bioenergy believes in an innovative company as a necessary and effective tool to make headway
toward a society committed to sustainable development. On the other hand, the company participates in actions
promoted by Abengoa mainly through its Focus Foundation.
All these actions are aimed at contributing to improve not only the economic, but also the social and environmental
surroundings and, therefore, the interest and wellbeing not only of the people working in the company but people in
general, organizations and communities around it.
Europe
Abengoa Bioenergy companies abide by the values of corporate social responsibility in their daily operations naturally
integrated into the company's strategy, culture and organization. For that purpose, they foster and contribute to the
development of the following activities:
Sponsorship of the Mandeo river
Support to the "Asociacion Vivre ensemble" for handicapped individuals
Venerable Cofradía del Santísimo Cristo de la Humildad y Paciencia (brotherhood)
Collaboration in Fiestas Patronales Teixeiro
Collaboration with Association "Lacq plus"
Collaboration with “Football Club de Biron"
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.
Below are some of the significant projects launched during this year:
Cooperation with associations.
National campaign against AIDS.
Influenza and tetanus vaccinations
Blood donation.
Renovacion” project.
Escuelas vivas” project.
“Adopte un nacimiento” project.
Collaboration with sport activities..
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Our stakeholders
Proyecto Renovación in Abengoa Bioenergia Brasil.
Human Rights
As Abengoa’s subsidiary, Abengoa Bioenergy (signatory of the World Pact since September 2002) works to ensure that
the 10 basic principles developed in the abovementioned Pact are observed.
These 10 principles stem from universal declarations and conventions: two on human rights based on the Universal
Declaration on Human Rights; four on labor inspired on the ILO Declaration on Fundamental Principles and Rights at
work, three on the environment supported by the Rio Declaration on the Environment and Development, and one on the
fight against corruption, based on the United Nations Convention against Corruption.
The respect of the fundamental rights of people and their environment being the main pillar of all its activities, Abengoa
Bioenergy and all its subsidiaries:
Support and respect internationally recognized fundamental human rights protection, within its scope of action.
Ensure companies are not accomplices to the violation of human rights.
Support freedom of association and effective acknowledgment of the right to collective bargaining.
Support the elimination of all forms of forced labor or compulsory labor.
Support the eradication of child labor.
Support the abolition of discrimination practices at work.
Maintain a preventive approach that favors the environment.
Foster initiatives that promote further environmental responsibility.
Favor the development and promotion of environmentally-friendly technologies.
Work against all forms of corruption, including extortion and bribery.
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Our stakeholders
Corporate governance
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Management structure
Board of directors
The current board of directors was constituted in July 2007. In 2012, it was formed by nine members, eight board
member, and one Non-board member secretary, which provide a diversified composition
Javier Salgado Leirado
President
Alberto Aza Custodio
Director
Cándido Velázquez-Gaztelu Ruiz (obituary)
Director
Javier Rupérez Rubio
Director
Juan Verde Suárez
Director
Luis Solana Madariaga
Director
Marcos Ramírez Silva
Director
Ramón de Miguel Egea
Director
Santiago Seage Medela
Director
Salvador Martos Barrionuevo
Non-board member secretary
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Board committees
The Board Committees shall meet as often as necessary to cover these duties, at least twice a year, and on all occasions
when convened by the Chairman, at its own initiative or at the request of any of its members. Meetings of the
Committees will also be valid when, all members being present, they agree to hold a session.
The Board Committees shall be considered validly constituted when the majority of the members are present.
Attendance can be delegated to another Board member. The resolutions shall be validly adopted when the majority of
the members present in the Committee vote in its favor.
The Board Committees are formed by three Non-executive Board Members designated by the Board of Directors, for a
maximum period of four years, renewable for maximum periods of the same duration. The Secretary of the Board of
Directors acts as Committee Secretary.
Board committees
Appointments and Remuneration Committee
Audit Committee
New Technologies committee
The functions and competences of the Appointments and remunerations committee are the following:
Report to the Board of Directors about new appointments, reelection, end of activity of any of the Board
members and their position, as well as the general policy of remunerations and incentives for the members and
the senior management.
Provide a preliminary report on all proposals to be presented by the Board of Directors to the Shareholders for
the appointment or end of activity or resignation of Board members, even in the event of co-opting by the Board
of Directors itself.
Draw-up an annual report on the activities of the Appointments and remunerations committee.
Assess the competences, knowledge and experience of the Board members, define the abilities and skills that
candidates need to have in order to fill the vacant positions, as well as evaluate the time and dedication needed
for an appropriate performance of their tasks.
Report the new appointments and end of activity of the senior managers proposed by the Chairman to the Board
of Directors.
Report the Board of Directors on miscellaneous matters.
Report the Board of Directors of the remuneration policy of directors and senior managers.
Inform the Board of Directors about the individual remuneration of the Board members and the approval of
Contracts that the company enters into with each counselor.
Ensure the compliance with the remuneration policy established by the company.
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ABENGOA BIOENERGY
Seek for the Chairman or CEO advice, especially in matters related to the executive directors and senior
managers.
Analyze the requests that any Board member may formulate for the consideration of potential candidates to fill
the vacant positions in the Board, as well as the vacant positions in the Company.
D. Cándido Velázquez-Gaztelu Ruiz (presidente)
D. Ramón de Miguel Egea
D. Luis Solana Madariaga
D. Juan Verde Suárez
D. Salvador Martos Barrionuevo (non-board member secretary)
Audit Committee
The functions and competences of the Audit Committee are the following:
Provide a report of the Annual Accounts as well as quarter and half-year financial statements, to be submitted to
the parent company, shareholders, financial institutions, public and private organizations, etc., mentioning the
internal control systems, supervision of compliance through internal audits, and, if applicable, the accounting
criteria applied.
Report to the Board on any change in the accounting criteria and on-balance sheet risks and off-balance sheet
risks.
Inform at the General Shareholders Meeting about the matters raised by the shareholders with respect to their
competence.
Propose the appointment of external auditors to the Board of Directors so as to be presented at the General
Shareholders Meeting.
Supervise the internal audits. The Committee will have full involvement in the internal audit. It will also report
during the process of selection, appointment, removal and reappointment of the Director and approval of his/her
remuneration, and will have to inform the budget of the Department.
Be aware of the process of financial reporting and the internal control systems of the company.
Meet with the external auditors in order to receive information about those matters that may imply a risk to their
independent judgment and any other matter related to the auditing process.
Summon the Counselors deemed appropriate to the meetings of the Committee, so that they inform on the
agreements being taken by the Audit Committee itself.
Elaborate an annual report on the activities of the Audit Committee, which should be included in
themanagementreport.
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ABENGOA BIOENERGY
Audit Committee
D. Javier Rupérez Rubio (presidente)
D. Alberto Aza Custodio
New Technologies Committee
The functions and competences of the New Technologies Committee are the following:
Report to the Board of Directors about the status of the new technological developments regarding biofuels.
Report in advance, all the proposals that the Board of Directors may submit to the General Meeting for the
adoption of agreements corresponding to the new technologies applicable.
Inform and give advice on the investment policy in new technologies.
Prepare an annual report on the activities of the New Technologies Committee and related progress.
New Technologies Committee
D. Luis Solana Madariaga (president)
D. Alberto Aza Custodio
D. Marcos Ramírez
D. Javier Rupérez Rubio
D. Javier Verde Suárez
Obituary
Cándido Velázquez-Gaztelu Ruiz (Jerez de la Frontera, 1936 - Madrid, November 8th, 2012).
Advisor of Abengoa Bioenergy from August 10, 2010 until his death on November 8, 2012. While he was part of the
Board of Directors of Abengoa Bioenergy, he presided over the Appointments and Remuneration Committee.
He was born in Jerez de la Frontera in 1936; he graduated from the University of Granada University in Law and Social
Studies. He held and MBA from IESE of Barcelona.
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He began his professional career teaching at a university level and, in 1961, he joined the business in managerial
positions of Coca-Cola in Malaga.
He held high responsibility positions in some of the most important multinational companies of the country.
Likewise, he was president of Telefónica and top manager of Tabacalera, between 1982 and 1996. He was president of
Accenture Advisory Board, advisor of several companies and president of the Association of Tobacco Companies (AET Asociación Empresarial del Tabaco).
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During 2012 the management structure of Abengoa Bioenergy was constituted as follows:
Sociedad
Dirección
Teléfono
Fax
16150 Main Circle Drive, Suite 300
Ignacio García Alvear
Chesterfield, St. Louis, MO 63017
Joaquín Alarcón de Lastra
Estados Unidos
Juan José Lallave García
Pº de la Castellana, nº 31 - 3Plta.
Francisco A. Morillo León
28046 Madrid España
Ginés de Mula González de Riancho Campus Palmas Altas
Antonio Montoya López
Calle Energía Solar nº 1,
41014 Sevilla, España
+1 636 728 0508
+1 636 728 1148
+34 91 319 7070
+34 91 308 5242
Ecocarburantes Españoles,S.A.
• President
• Chief Executive Officer
• Plant Manager
Eduardo Sánchez-Almohalla Serrano Crta. N-343, Km 7,5,
Antonio Vallespir de Gregorio
Valle de Escombreras
David Galindo Cascales
30350 Cartagena , España
+34 968 16 7708
+34 968 16 7070
Bioetanol Galicia, S.A.
• President
• Plant Manager
José B. Terceiro Lomba
Tomás Blanco Parra
+34 981 77 7570
+34 981 78 5131
+34 923 28 4163
+34 923 28 4143
+34 91 354 2712
+34 95 669 9122
Rocade Sud d'Arance
Plateforme Induslacq, Porte d'Abidos
64300 Arance, Francia
+33 559 14 0990
+33 559 14 0991
Merwedeweg 10
Haven 5629, 3198 LH Europoort,
Holanda
+34 91 319 7070
+34 91 308 5242
Pº de la Castellana, nº 31 - 3Plta.
28046 Madrid, España
+34 91 319 7070
+34 91 308 5242
Weena 294, Weena 200 Building,
Tower C, Floor 7th, Rotterdam,
Holanda
+31 10 271 0111
+31 10 271 0119
Crta. N-343, Km 7,5,
Valle de Escombreras
30350 Cartagena , España
+34 95 493 7000
+34 95 493 7012
Campus Palmas Altas
Calle Energía Solar nº 1,
41014 Sevilla, España
+34 95 493 7000
+34 95 493 7012
Abengoa Bionergía, S.A.
Corporate
• President & Chief Executive Officer
• Chief Financial Officer
• Corporate Development Director.
• IT Corporate Director
• Chief Technical Officer
• Risk Management Corporate Director
• Human Resources Corporate Director
Polígono Industrial Teixeiro
Ctra. Nacional 634, Km. 664,3
15310 Teixeiro-Curtis, La Coruña,
España
Biocarburantes de Castilla y León, S.A.
• President
Ginés de Mula González de Riancho Crta. de Encinas a Cantalapiedra,
Km. 5,2
• Plant Manager
Gonzalo Curiel Fernández
37330 Babilafuente, Salamanca,
España
Abengoa Bioenergía San Roque, S.A.
• President
Ctra.Nacional 351 s/n Cortijo Santa
Rosa
Plant Manager
Juan Carlos Muñoz
11360 San Roque, Cádiz, España
Abengoa Bioenergy France, S.A.
• President
• Plant Manager
Pierre Moreau
Abengoa Bioenergy Netherlands, B.V.
• President
• Plant Manager
Darrell Hampshire
Abengoa Bioenergy UK, Ltd.
• President
• Plant Manager
Darrell Hampshire
Abengoa Bioenergy Trading Europe, B.V.
• President
• Executive Vice President
Pedro Carrillo Donaire
Ecoagrícola, S.A.
• President
Antonio Navarro Velasco
Pedro Carrillo Donaire
Abengoa Bioenergía Nuevas Tecnologías, S.A.
• President
Gerson Santos-León
• General Director
Ricardo Arjona Antolín
2012 Annual Report
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ABENGOA BIOENERGY
Sociedad
Dirección
Teléfono
Fax
Estados Unidos
523 East Union Ave
Colwich, KS 67030, Estados Unidos
1827 Industrial Dr.
Portales, NM 88130, Estados Unidos
1414 Road O
York, NE 68467, Estados Unidos
+1 636 728 0508
+1 636 728 1148
+1 316 796 1234
+1 316 796 1523
+1 505 356 3555
+1 505 539 1060
+1 402 362 2285
+1 402 362 7041
Abengoa Bioenergy Corporation
• Executive Vice President & COO
• US Director of Operations
• Colwich Plant Manager
Craig Cramer
Jack Beery
• Portales Plant Manager
Joe Gillespie
• York Plant Manager
Mitch Stuhr
Abengoa Bioenergy Nebraska
Craig Cramer
Estados Unidos
+1 636 728 0508
+1 636 728 1148
• Plant Manager
Adam Hass
35955 Navaho Rd.
+1 308 452 3900
Ravenna, NE 68869, Estados Unidos
+1 308 452 3253
Abengoa Bioenergy Indiana
Craig Kramer
Estados Unidos
+1 636 728 0508
+1 636 728 1148
• Plant Manager
Darrel Sanford
8999 West Franklin Road
+1 812 985 4032
Mt. Vernon, IN 47620, Estados Unidos
+1 812 985 9983
Abengoa Bioenergy Illinois
Craig Kramer
Estados Unidos
+1 636 728 0508
+1 636 728 1148
• Plant Manager
David Henderson
395 Bissell Street
Madison, IL 62060, Estados Unidos
+1 618 451 4420
+1 618 452 8946
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
+1 636 728 0508
+1 636 728 1148
Abengoa Bioenergy Engineering & Construction
• President & Chief Executive Officer Javier Salgado Leirado
Abengoa Bioenergy Trading US
David Weber
Abengoa Bioenergy New Technologies
• President & Chief Executive Officer Javier Salgado Leirado
Gerson Santos-León
Abengoa Bioenergy Developments
Joaquín Alarcón de la Lastra
Romero
Estados Unidos
Abengoa Bioenergia Brasil
• Comercial Director
• Economical & Financial Director
• Agroindustrial Organization Director
• Agricultural and Commercial Director
• Industrial Director
2012 Annual Report
Juan Taín Varela
Alberto Carmona
Hernán Tálamo
Antonio Rodríguez García
João Martins
Roberto Potenza
Fazenda São Luiz
13630-970 Pirassununga-SP, Brasil
101
+55 19 3565 5555 +55 19 3565 5502
ABENGOA BIOENERGY

ABENGOA BIOENERGY - Abengoa Bioenergía

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