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December

Abengoa Bioenergía requests from the Ministry of Agriculture, Fisheries and Food an extension to the authorization of cereal purchase contracts for its plant feedstock supply

December 29, 2006

Madrid, 29th December, 2006. Abengoa Bioenergía, a company dedicated to sustainable development through the production and marketing of biofuels, has announced that it has just requested from the Ministry of Agriculture, Fisheries and Food an extension to the authorization of cereal purchase contracts for its plant feedstock supply for the coming growing season.

For years, Abengoa Bioenergía has strongly committed itself to the promotion of energy crops and set-aside land as sources of raw material for its production plants. In recent years, this commitment has been reflected in significant growth in cereal production from these lands for the plants already in operation, and are considered a vital means of guaranteeing ram material to the plants presently under development in the European Union. This system of supply has been built by agreements with Spanish farmers through a model contract authorized by the Ministry of Agriculture, Fisheries and Food

In this context, and as a continuation of the efforts made by Abengoa Bioenergía in its commitment to energy crops and set-aside land, it has just requested that the Ministry extend its authorization of this type of contract to the coming growing season. Business logistics drive this request because the established deadlines make it necessary to begin signing these contracts now, notwithstanding that, at a later stage and with the support of the Ministry, Abengoa Bioenergía can incorporate contractual modifications that are jointly agreed with the farmers, the Agricultural Producer Organisations or the Agricultural Cooperatives, in meetings that are currently taking place to discuss this issue.

Abengoa Bioenergía’s activities are centred on the production and sale of bioethanol and the co-products from the production process, principally DDGS (a protein-rich animal feed) and carbon dioxide. Operating on both sides of the Atlantic, Abengoa Bioenergía is the market leader of bioethanol in Europe and one of the largest manufacturers in the USA. Overall, it is the second largest producer of bioethanol in the world.

Abengoa is a technological company that applies innovative solutions for sustainable development to infrastructures and to the environment and energy sectors. It is quoted on the stock market with a market capitalisation of more than 1,800 Euros. It is present in over 70 countries, operating through its five business units: Solar, Bioenergy, Environmental Services, Information Technology and Industrial Engineering and Construction. (www.abengoa.com).



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