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Abengoa establishes platform for engineering and industrial construction in USA

February 2, 2007

Seville, February 2, 2007 - Abener Energia, S.A., a company of Abeinsa, Abengoa Engineering and Industrial Construction Business Group, has agreed with MECS, Inc. to the creation of a joint venture operating under the service mark of Abencs. The joint venture will be focused on executing engineering and construction of biofuels and other alternative energy plants. Abencs will be staffed with detailed engineering, procurement and construction teams transferred from the MECS organization in Saint Louis and will include MECS’s subsidiary in Mumbai, MECS Enterprises Private Ltd., (MEPL). Abener will hold a 51 percent share in Abencs.

MECS was incorporated in 1969 and has considerable experience in engineering and turnkey construction of U.S. industrial plants. MECS, being located in the North American Midwest corn belt, has more recently become involved in bioethanol plant projects and has developed a strong knowledge base in biofuels.

MEPL, headquartered in India, is also dedicated to engineering and construction of industrial plants both in India and the surrounding regions. MEPL became a wholly-owned subsidiary of MECS in mid-2006 following 10 years of shared ownership between MECS and a local Indian chemical company.

In the opinion of Alfonso González, chairman of Abeinsa, “this acquisition reinforces our strategy of international development. Nowadays more than 50% of our business is in the area of engineering and construction of industrial, biofuels and energy generating plants. The addition of Abencs to Abener reinforces our capacity for engineering and construction of biofuel and thermo-solar plants and strengthens our presence in the USA, India and China. These are all strategic markets offering exciting growth opportunities.”

“The USA has recently established a goal to reduce gasoline consumption by 20 percent over the next decade. The USA is also an important market for future construction of thermo-solar plants, following the lead of Spain. Also, India and China collectively have 2,400 million inhabitants (40 percent of the global population) and desperately require clean energy technologies to support their rapidly expanding domestic economies in ways that are environmentally responsible. The collaboration of Abencs and MEPL with Abener will be a benefit in these projects” Gonzalez Domínguez concluded.

P.J. Desai, currently the President of MECS, Inc. and who will become the President of Abencs stated that “we are looking forward to this partnership with one of the worldwide leading companies in the engineering and construction of biofuels and other alternative energy generation plants. We believe that this joint venture will be good for our employees, customers and other stakeholders.”

Abengoa is a technology company applying innovative solutions for sustainable development in the infrastructures, environment and energy. It quotes on the Stock Exchange with a capitalization of more than 2,729.47 million euro (01/02/2007) and is present in more then seventy countries, where it operates with five Business Units: Solar, Bioenergy, Environmental Services, Information Technologies and Industrial Engineering and Construction (

MECS is a market leader in the sulfuric acid industry and will continue to serve the global sulfuric acid industry with its technology, designs and equipment packages. It will also provide engineering and construction services in the U.S. market utilizing the resources of Abencs or through its existing alliances with other companies. All sulfuric acid and Dynawave scrubber know how remains with MECS and MECS will continue to supply its proprietary products including catalyst, specialty alloy equipment and mist eliminators as well as it’s complete range of technical and market support services, currently available through the company’s network of worldwide locations.

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