HUGOTON, Kan. (AP) – The U.S. Department of Energy says it has

finalized a $132 million loan guarantee to a company that plans to

convert crop residues into ethanol in southwest Kansas.

Abengoa Bioengergy Biomass of Kansas is developing a

commercial-scale cellulosic ethanol plant in Hugoton, about 70

miles southwest of Garden City.

The company estimates the project will create about 300

construction jobs and 65 permanent positions. The DOE says the

project will convert roughly 300,000 tons of agricultural crop

residues, including corn stalks and leaves, into 23 million gallons

of ethanol per year.

Energy Secretary Steven Chu says the project will help reduce

carbon emissions and decrease the country’s dependence on oil.