Uruguay Alur partners Abengoa in USD 120m bioethanol plant

Oct 14, 2011 - Uruguayan state-run ethanol producer Alcoholes del Uruguay (Alur) selected Spanish renewable energy and engineering company Abengoa (MCE:ABG) to be its partner in a USD 120 million (EUR 87.1m) bioethanol plant, the Spanish company said today in a press release.

The plant, to be located in the Paysandu department, western Uruguay, will produce 70 million litres (15.38 million gallons) of bioethanol and 50,000 tonnes of distiller's dried grains (DDGS). Furthermore, the two partners will build an 8 MW biomass co-generation plant.

The construction is seen to continue 22 months. Both companies will subsequently form a joint venture to operate and maintain the plant. Alur, in turn, will be responsible for selling the end products and for the supply of the raw materials.

According to Alur's chairman, Leonardo De Leon, cited by Uruguayan daily El Pais, the Spanish company will hold a minority stake in the joint venture and will deliver the technology for the plant. The construction will begin in January 2012. According to De Leon, the final details on the future financing will be closed in few weeks. Between 75% and 80% of the plant's construction costs will be covered by banks, while the remainder will be invested by Alur and Abengoa.

Alur is the renewable energy producing arm of Uruguay's state-owned oil company Ancap, while Abengoa owns Uruguay's power generation company Teyma Uruguay.

(USD 1.0 = EUR 0.721)

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