# ABENGOA

Innovative technology solutions for sustainability


# Abengoa celebrates grand opening of its first commercial

- scale next generation biofuels

plant

Global l eader in the d evelopment of n ew i ndustrial b iotechnologies d ebuts

a dvanced b iorefinery for cellulosic ethanol in Southwest Kansas

.

 U.S. Secretary of Energy Dr. Ernest Moniz

, Kansas Governor Sam Brownback and Kansas Senator Pat Ro b er t s offer remarks during on

- site event commemorating landmark occasion for advanced biofuels industry

.

 Abengoa ’ s proprietary enzymatic hydrolysis technology turns crop resid ue (stalks, stems and leaves) into a sustainable fuel source

– cellulosic ethanol

.
Hugoton, Kan.

– October 17, 2014

– Abengoa (MCE: ABG.B/P SM /NASDAQ: ABGB), the international company that applies innovative technology solutions for sustainability in the energy and environment sectors, today announced the official grand opening of its second generation cellulosic et hano l plant in Hugoton , Kan sas
, located about 90 miles southwest of Dodge City

. T he opening was attended by U

. S

. Secretary of Energy Dr. Ern e st Moniz

, Kansas Governor Sam Brownback

, Former U

. S

. Secretary of the Interior Ken Salazar , Kansas Senator P at Roberts , Mayor of Hugoton Jack E

. Rowden and CEO of Abengoa Manuel Sánchez Ortega

. Abengoa’s new industry

- leading biorefinery finished construction in mid

- A ugu st and began producing cellulosic ethan o l at the end of S eptember with the capacity to produce up to 25 million gallon s per year

. The plant utilizes only “second generation ” (2G) biomass f eedstocks for ethanol production , meaning non

- edible agricultural crop residues (such as stalks and leaves) that do not compete with food or feed grain

. The state

- of

- the

- art facility also features a n electricity cogeneration component allowing it to operate as a self

- sufficient renewable energy producer. By utilizing residual biomass solids from the ethanol conversion process, the plant
g enerate s 2 1 megawatts (MW) of electricity

– enough to power itself and provide

excess clean renewable power to the local Stevens County community

.

The Hugoton plant opening also marks the first

- ever commercial deployment of Abengoa’s proprietary enzymatic hydrolysis technology, which turns biomass into

# ABENGOA

Innovative technology solutions for sustainability

fermentable sugars that are then converted to ethanol. Among the first wave of commercial

- scale ethanol plants in the country, Hugoton builds on recent industry
momentum showcasing cell ulosic ethanol as a sustainable alternative fuel source that significantly reduces greenhouse gas emissions and increases energy independenc e

. In addition to the plant’s crucial role in proving the commercial viability of cellulosic ethanol, its success provide s a platform for the company’s future development of other bioproducts that reduce petroleum use, such as bioplastics, biochemicals and drop

- in jet fuel.

“Th e Hugoton plant opening is the result of 10 years of technical development

, roughly 4 0,000 hours of pilot an d demonstration plant operation , and the support of the DOE

, ” said Manuel Sánchez Ortega, CEO of Abengoa. “ This is a p roud and pivotal moment for Abengoa and for the larger advanced bioenergy industry

– and further demonstrat es our longstanding commitment to providing sustainable energy alternative s in the United States

. This would have been simply impossible without the e stablish ment of the Renewable F uel Standar d

. ”

Abengoa receive d a $ 13 2. 4 million loan guarantee and a $97 million grant through the Department of Energy to support construction of the Hugoton facility

.

Indus trial Bio technology Renewed

At full capacity, the Hugoton facility will process 1,000 tons per day of biomass, most of which is harvested within a 50

- mile radius each year

– providing $17 million
per year of extra income for local farmers whose agricultural waste would otherwise have little or no value

. Of that b iomass, more than 80 percent is expected to consist of irrigated corn stover, wi th the remainder comprised of wheat straw, milo stubble and switchgrass.

Abengoa plans to offer licenses and contracts to interested parties covering every aspect of this new industry

– from process design, to engineering, proc urement and construction (EPC), supply of exclusive enzymes, as well as operations and marketing of the completed products from the facility.

The pro pr ietary enzymatic hydrolysis technology utilized commercially at Hugoton is also a focal point in Abengoa ’s efforts to diversify the range of r aw material

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Innovative technology solutions for sustainability

feedstocks from which biofuels and bioproducts can be produced

. For example, for more than a year the company has been operating a demonstration

- scale facility that is capitalizing on the same technology and enzyme cocktail used at Hugoton to extr act cellulosic sugars from municipal solid waste (trash), thereby allowing expansion of the renewable fuels industry from rural to urban areas.

Legacy of Innovation

W ith a biofuels presence on three continents, Abe ngoa is an international bio technology company

– one of the largest ethanol producers in the U nited States and Brazil, and the largest producer in Europe with a total of 867 million gallons of annual installed production ca pacity distributed among 15 commercial

- scale plants in five countries.

Abengoa ’s overall presence in the United States

– including its solar, water desa lination

, biofuels and engineering and construction businesses

– has grown exponentially since the company expand ed its business more than a decade ago. Some 26 percent of the company’s assets are currently in the United States, which is Abengoa’s largest market in terms of sales.

For more information and materials

, including images, video/b

- roll and a fact sheet, please visit: www.abengoabiotech.com/pressroom or conne ct with the company on Twitter @Abengoa and follow the conversation with # BiotechRenewed and #WhyKansas.

About Abengoa Abengoa (MCE: ABG.B/P SM /NASDAQ: ABGB) applies innovative technology solutions for sustainability in the energy and environment sectors, generating electricity from renewable resources, converting biomass into biofuels and producing drinking water from se awater

. ( www.abengoa.com )

For further information, please contact:

Communication s Department: Patricia Malo de Molina Meléndez. Tel: +1 6365322111 Celular: +1703.585.0707 E

- mail: communication@abengoa.com Investor relations: Bárbara Zubiría Furest. Tel: +1 6365322111 E

- mail: ir@abengoa.com

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Innovative technology solutions for sustainability

You can also follow us on:

@Abengoa

And on our blog: http://theenergyofchange.com/