February 2011

Abengoa Today

Financial closure of the world’s largest solar power plant

Total investment will be approximately $2,000 M

Abengoa Solar announced a $1,450 M financial closure for construction and start-up of the world’s largest solar thermal power plant – Solana – a 250 MW solar thermal plant to be built in Arizona (US).

The United States Department of Energy has awarded, through its loan assurance office, a federal guarantee on credit given to support this project. Moreover, the Solana project, on which construction has already commenced, meets the requirements established in program 1603 sponsored by the United States Treasury Department, which will enable the project to benefit from a grant amounting to 30 % of the total cost of the investment.

The plant will be located 100 kilometers southwest of Phoenix and will produce sufficient energy to cover the consumption needs of 70,000 homes while avoiding the emission of 475,000 tons of CO2 per year, compared with a natural gas plant. Moreover, it will generate significant economic and environmental benefits for Arizona State, helping to achieve the objectives of national energy independence.

Solana is the first solar power plant in the US that is capable of storing the energy it produces, six hours of thermal energy storage utilizing molten salts that will allow electricity to be produced during overcast periods and after sunset. The plant will produce energy at night to satisfy the demand for electricity that exists in the area in summertime.

Abengoa Solar estimates the Solana project will generate from 1,600 to 1,700 jobs during construction, and 85 permanent jobs. Furthermore, about 75 % of the equipment and supplies required for its construction will be manufactured in the US.

Abengoa and 20 other European partners sign the constitution of Medgrid in Paris

The Medgrid initiative aims to develop a Euro-Mediterranean power grid and promote the connection of the two shores of the Mediterranean

Abengoa and 20 other European partners signed the constitution of Medgrid in Paris, a project that seeks to promote and develop a Euro-Mediterranean power grid that favors the transport of energy generated in countries on the southern shore of the Mediterranean to the European market.

It also provides for the development of a strategic plan to build underwater power lines to connect the two shores of the Mediterranean. At present, there is only an electrical interconnection between Europe and North Africa (Spain-Morocco) in operation.

The signing of the agreement represents the materialization of a project that began early last year, to which leading international companies involved in the generation, transport, and distribution of electricity, and the design, construction and operation of grids have committed themselves.

The partners have agreed to conduct several feasibility studies over the next three years with a view to enabling, by 2020, the importation of electricity to Europe. The signatories agree that this moment represents “a very significant step” towards achieving generation of 20 GW from renewable sources by 2020, especially of solar origin in northern Africa and eastern Mediterranean countries, a quarter of which will be exported to Europe.

The signing partners are: Alstom Grid; Areva; Atos WorldGrid; CDC Infraestructuras; EDF; Ineo; Nemo; Nexans; Nur Energie; ONE; Pan Med Trading and Investment; Prysmian; Red Electrica; RTE; Siemens; Soitec; Taqa Arabia; Terna and Salid Elias Establishment, and Abengoa.

Of note among the main projects announced by the partners, who will each initially contribute 200,000 €, is the installation of five high-voltage cables that will allow transport of 5,000 MW. The investment will eventually amount to 6,000 M€.

Medgrid is part of the Mediterranean Solar Plan, rolled out in 2008 as a project to sustainably meet the expected increase in energy demand in the Euro-Mediterranean region and the need to reduce greenhouse gas emissions.

The 300 MW cogeneration plant built by Abengoa for PEMEX receives recognition by the Businessmen’s Association

The plant, located in Mexico, has earned Abengoa recognition for internationalization by the Businessmen’s Association and the Wharton School of the University of Pennsylvania

Prof. Mauro F. Guillen, The Lauder Institute (Wharton School), University of Pennsylvania; German Bejarano Garcia, assistant to the Chairman and Director of Institutional Relations; and Claudio Boada, Chairman of the Businessmen’s Association.

On the occasion of the presentation of its “2010 Yearbook on the Internationalization of Spanish Companies”, the Businessmen’s Association and the Wharton School of the University of Pennsylvania recognized Abengoa as a model of international business management for the relevance of the operations carried out in 2009 and in comparison with other Spanish companies.

Abengoa, represented by German Bejarano, assistant to the Chairman and Director of Institutional Relations, was awarded this distinction for the construction of the 300 MW cogeneration plant in Tabasco, Mexico, property of the state-owned energy company Petroleros Mexicanos (PEMEX).

The financial transaction for this project has been approved by Banobras (National Bank for Public Works and Services of Mexico) and has been closed under the project finance scheme. Furthermore, the project has resulted in the establishment of a consortium between Abener Energía and Abengoa México, and General Electric has become a stakeholder in the same.

Claudio Boada, Chairman of the Businessmen’s Association, underscored Spain’s tenth position in the world ranking of direct investors, with the main beneficiaries of said investments being the 27 member states of the European Union and Latin America. He also emphasized that, at present, the major opportunities for capital export lie in Brazil, the Unites States and China.

At the presentation ceremony, the OHL Group, BBVA bank, Iberdrola Ingeniería y Construcción, Elecnor, and Sacyr Vallehermoso also received recognition.

Abengoa awarded the International-Eurofinance Prize for Excellence by the Spanish Association of Corporate Finance Officers and Treasurers (ASSET)

During the prize-giving ceremony, held on December 2nd, 2010, the ASSET underscored Abengoa’s excellent international management

Jose Badia, president of ASSET, Jesus Garcia-Quilez, corporate finance director at Abengoa, Mariel Barclay, Eurofinance, the prize sponsor, and Jose Carlos Cuevas, vice president of ASSET, at the presentation of the International-Eurofinance Prize for Excellence to Abengoa.

ASSET, the Spanish Association of Corporate Finance Officers and Treasurers, presented Abengoa with the International- Eurofinance Excellence award at the 6th edition of the Excellence in Finance Prizes it organizes each year.

At this edition, the jury, formed by executives from different fields of the financial world and the Association’s board of management, awarded Abengoa the prize in recognition of its ability to successfully combine an international growth strategy, a strong commitment to sustainable development, and the pursuit of innovative financial solutions in the different markets it operates in.

As an example of Abengoa’s excellent international management, the jury emphasized the provision of a guarantee by the United States Department of Energy for funding amounting to 1,500 million dollars, as well as the issue of bonds placed with North American institutional investors and the company’s different international financing operations.

Abengoa was represented at the ceremony by Amando Sanchez, Vicente Jorro, and Jesus Garcia-Quilez, who collected the prize on behalf of the company. This prize demonstrates how the development of in-house technology in the solar thermal energy sector and second generation biofuels have helped Abengoa to position itself as world leader in the use of innovative solutions in the energy and environment sectors, strengthening its engineering capacity and allowing it to obtain more than two thirds of its revenues in international markets.

The aim of the Prizes for Excellence awarded by the ASSET is to foster and recognize original financial transactions and solutions that contribute to the success of corporate finance departments and, consequently, a company itself.

Other prizewinners in this edition were Vueling, Jose Mª Benavent, Economic/ Finance Officer at R, and Iberdrola.

The Campus Palmas Altas (CPA) Medical Center supports Sustainable Mobility

Walking and biking, the healthiest, most economic and sustainable alternatives for commuting to the work center

Campus Palmas Altas encourages Abengoa employees to use bicycles.

The medical center at CPA encourages the use of a bicycle as a means of transportation, as aerobic exercise, biking or walking, is ideal for the respiratory and cardiovascular systems. It also helps to reduce the level of fat in the body, leading to a significant improvement in our overall health condition, and, therefore, in quality of life.

Cycling is one of the healthiest sporting activities, featuring a small risk of body injury and a great number of cardiovascular benefits. It is an ideal activity for developing resistance and aerobic fitness, and can be practiced individually or in small groups.

Walking is another exercise with major benefits for health and aerobic fitness.

Furthermore, sport is one of the best ways to combat, relieve and avoid stress. Walking or cycling in the morning at a slow or moderate pace is of great help in preventing daily and accumulated stress.

Burn calories not gasoline!

And lastly, we should not forget that getting around requires energy; the question is whether we burn it with our own body or with the car engine. The former is a healthy and inexpensive option and, moreover, helps to burn calories; the latter is costly and in no way environmentally-friendly.

Whenever we use a car we should ask ourselves if it is really necessary. It probably isn’t. Moreover, it is a habit that leads to sedentary lifestyle and accustoms us to using motorized transportation wherever we go.






CPA staff will be able to travel with their bicycles on the shuttle service coaches and repair them at the Campus

The shuttle service coaches will be able to transport bicycles in their holds

Parking area for bicycles at Campus Palmas Altas (Seville).

The idea the Mobility Office wishes to convey with this initiative is that anyone who feels like biking some of the way to CPA can cycle to the shuttle stop nearest them, put their bike in the hold and then continue their journey to CPA on the coach. This will avoid them having to leave their bicycle in the street until their return.

Cyclists can also benefit from the facilities Campus Palmas Altas has designed and provided for them, such as changing and washrooms, a bicycle repair point and parking areas reserved for the same.

Furthermore, CPA users that cycle to work will be able to use the bicycle repair area the Sustainable Mobility Office has set up. The aim of this initiative is to enable the cyclists to resolve any problems with their bicycles on site, in a convenient manner, and without having to go to a repair shop.

The repair and maintenance area is equipped with bicycle stands, suitable lighting for repair and maintenance jobs, rolls of paper, first-aid kit available in the Mail Sorting Office, different sized spare tubes, and a tool box available in the Visitor Reception Center at the main entrance.

With this initiative, Campus Palmas Altas hopes to encourage more users to utilize the bicycle as a sustainable and environmentally friendly means of transportation for commuting to and from work.

The Sustainable Mobility Office encourages the use of two-wheel vehicles by offering special promotions to Abengoa employees

Significant discounts are available to company employees when purchasing motorcycles or mopeds

A wide range of motorcycles and mopeds from Piaggio, Vespa, Gilera, Derbi, Aprilia, MH motorcycles, and Peugeot.

Sustainability is a cornerstone of Abengoa’s philosophy and the aim of this initiative is to encourage all employees to assume their responsibility towards the environment.

The Sustainable Mobility Office and El Corte Ingles are running an awareness campaign on care and respect for the environment. To this end, they are offering Abengoa employees comfortable financing, special discounts and facilities of all kinds for the purchase of bicycles, motorcycles and mopeds. The discounts range from around the €100 on mopeds (less than 50 cc) and €200 on motorcycles (more than 50 cc). There are also special prices available for bicycle buyers.

The promotion includes seven of the best brands: Piaggio, Vespa, Gilera, Derbi, Aprilia, MH motorcycles and Peugeot. Moreover, anyone who purchases one of these vehicles will receive a present of a crash helmet and an anti-theft device, as well as a 15% discount on vehicle insurance.