Amid financial turmoil, Abengoa shut down two ethanol plants in Kansas. The Wichita Eagle reports the company shut down one of the plants two weeks ago. The Spanish company with operations worldwide filed for legal protection last month because of heavy debts. At the time, a plant employee at one of the facilities said it was closed for “seasonal maintenance.” However, it has not reopened at the cost of 20 jobs.
The company also closed down its cellulosic ethanol plant in Kansas, which opened about a year ago. However, the 45 employees are expected to be welcomed back in the spring after the so-called “down season.” The company said publicly after its filing that its ethanol plants would continue to operate. Biomass Magazine reported last week that roughly 30 employees remained in the company’s U.S. corporate office in St Louis. CHS had filed a lawsuit last month against the company before its filing for protection. The lawsuit alleges that Abengoa failed to pay nearly $4.9 million for corn delivered to plants in Kansas and Nebraska during September and October.