Oct 13 2016
Royal Dutch Shell Plc’s U.S. arm has offered more than $26 million in an initial bid to buy Abengoa SA’s cellulosic ethanol plant in Kansas, according to documents filed late Wednesday in bankruptcy court, reports Reuters. The plant is soon to be put on auction.
Shell’s initial bid on Abengoa’s bankrupt biofuels asset marks the oil major’s latest push into renewable fuels as the U.S. government is getting its over decade-old biofuels policy back on track following years of regulatory delays, Reuters say.
“This move is in line with Shell’s strategy to develop biofuels” that use sustainable feedstocks, Shell spokeswoman Natalie Mazey said in an emailed statement.
For Abengoa, the potential sale is the latest step to shed its U.S. renewables assets as the company pushes on with efforts to avoid becoming Spain’s biggest bankruptcy.
Abengoas 25-million-gallon cellulosic plant near Hugoton, Kansas, can turn plant waste into an advanced biofuel that qualifies for the country’s Renewable Fuel Standard (RFS) program.