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www.abengoabioenergy.com

• Production of ethylalcohol from vegetableproducts (cereals,biomass). The resultingalcohol (bioethanol) isused to manufactureETBE (a petrol additive)or is blended directlywith petrol or gas oil.Thus, upon it being arenewable energy, netCO2 emissions arereduced (greenhouseeffect).• Production of DDGS(Distillers Dried Grainswith Solubles), aprotein complement foranimals and CO2.

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Workforce in Spain

Spain Total employees

Ecocarburantes Españoles 80

Bioetanol Galicia 67

Biocarburantes de Castilla y León 8

Corporativo Abengoa Bioenergía and Ecoagrícola 11

Total workforce in Spain 166

The Business Unit integrates the management of thefollowing companies:

• Ecocarburantes Españoles, S.A.• Ecoagrícola, S.A.• Bioetanol Galicia, S.A.• Biocarburantes de Castilla y León, S.A.• ETBE Huelva, S.A.• Abengoa Bioenergy Corp. (replacement of

High Plains, Corp.).• Abengoa Bioenergy R&D.• Greencell, S.A.

- Operations Dept.- Financial Dept.- QA, IT and Supply Dept.- Legal Dept.- Internal Auditing Dept.- Engineering Dept.- New Projects Dept.- Business Development

Abengoa BioenergyBusiness Unit

AbengoaBioenergy Corp. Europe

ColwichPlant

PortalesPlant

YorkPlant

EcocarburantesEspañoles

BioetanolGalicia Ecoagrícola Greencell Biocarburantes de

Castilla y LeónETBE

Huelva

- Abengoa Bionergy R&D

Organization

During the year 2003, we have continued theintegration of the Business Group initiated in 2002.In this respect, the common objective to standardizeour Operation Management systems and theControl and Management of the companies in theU.S.A. and the EU, have experienced remarkableadvances, of which we should emphasize:

• Standardization of purchase management systemsby means of the use of tools in Lotus Notes.

• Standardization of the integrated quality,environment, security, and prevention of risksmanagement systems.

• Standardization of commodities risk managementsystems.

• Standardization of production plants operationmanagement systems.

• Standardization of internal control and auditingmanagement systems.

In addition, we have reinforced our commitment toservice, quality and technological innovation, makingthem present in our image of Abengoa Bioenergy, inwhich we continue working: Science. Solutions.Service.

At the end of the year 2003, and along with thecorporate departments already in existence, wecreated the Corporate Department of New Projectsresponsible for the supervision of the engineering,supply, construction and starting up of newinstallations in the USA and in the EU.

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As significant targets of 2003, which will be treatedspecifically and in greater depth further on, thefollowing should be emphasized:

USA

• Obtaining of sale agreements with the main NorthAmerican oil companies and refineries.

• In-house commercialization of our byproduct DDGS.• Strategic positioning in the development and

promotion of new projects in the U.S.A..• Expansion of operational capacity of the Colwich

plant.• Start up of expansion of the capacity of the

Portales plant.• Incorporation of 6 Sigma methodology for the

improvement of our production processes.• Integration of the corporate ABC offices and of

the Business Unit in Saint Louis.

Europe

• Obtaining ethanol export agreements to Swedenand Germany.

• Starting up of wine alcohol plant by Ecoagrícola inGalicia.

• Starting up of the third bioethanol plant in Spain.• Strategic positioning in the development and

promotion of new projects in Europe.

R&D

• Signing of 35 million USD contract with theDepartment of Energy of USA for the financing ofbiomass project.

• Signing of 3.9 million Euros contract with the EUfor the financing of a biomass pilot plant in Spain.

• Commencement of construction of a ResidualStarch Conversion Plant in USA.

• Incorporation of the management of Greencellwithin the Business Unit.

• Completion of the structure of resources of R&Dof the Business Unit.

The perspective of the development of the U.S.A.and EU market is a fact that is worth emphasizing.The legislative advances in the U.S.A. and EU willallow promotion in both continents, a substantialdevelopment of the biofuel markets in whichAbengoa Bioenergía aspires to play a main role.

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Operations Europe

Abengoa Bioenergía currently operates twoproduction plants of bioethanol from cereals in Spain.The first is Ecocarburantes Españoles, S.A., inCartagena (Murcia), with a production capacity of142 million litres, and Bioetanol Galicia, S.A., in Curtis(Coruña), with a production capacity that reaches168 million litres. Additionally, there is another plantunder construction, Biocarburantes de Castilla yLeón, S.A., in Babilafuente (Salamanca), with anannual production capacity of 200 million litres.

What is more, Abengoa Bioenergía has foreseen in itsBusiness Plan in Europe the promotion andconstruction of two new bioethanol plants on thecontinent. Collaboration agreements and the studiesof viability of locating them in the markets where thedemand and the legislative frame allow a fast andsafe expansion of Bioethanol are being developed atpresent, supported by the recent approval of theEuropean Directives of Promotion and Detaxation ofBiofuels and their transpositions to the nationallegislations by the different Member States.

Ecocarburantes Españoles

The plant, Ecocarburantes Españoles, is situated inValle de Escombreras (Cartagena), with a productioncapacity of 100 million litres from cereal, and another42 million litres from wine alcohol. It should beemphasised that this plant has continued with theoptimization of costs started in previous years. Thecontrol and the flexibility obtained in the operation ofthe plant, with better yields each time, has resulted inwhat was expected of the company, this being themost important point to emphasize.

Bioetanol Galicia

Located in Curtis (Coruña), and with a productioncapacity of 168 million litres of bioethanol fromcereal, and the plant Bioetanol Galicia, has managedto reach its commercial production capacity in astable manner and in record time. Once the tests had

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been passed, lthe plant has continued to operate withresults superior to those expected, using wheat asraw material.

Ecoagrícola

Abengoa Bioenergía has Ecoagrícola, a company thatpurchases grain, sells DDGS – ecological protein feed– and provides comprehensive logistics managementfor the Spanish plants. It is also the owner of the winealcohol plants installed in Cartagena and Curtis. Thechallenge that the increased volume of business as aresult of the continuous production of the plant inGalicia, with raw materials and products different tothose in Cartagena, has been well overcome byEcoagrícola.

The obtainment of cereal contracts from set-a-sidelands in other European Community countries otherthan Spain, has, for the first time, also marked asignificant landmark and an important experienceregarding the European expansion that AbengoaBioenergía has predicted in the coming years.

Biocarburantes de Castilla y León

During 2003, Abengoa Bioenergía has begunconstruction of its third plant in Spain through itscompany Biocarburantes de Castilla y León, S.A., witha 50% ownership interest with Ebro Puleva. Thefacility will be located in Babilafuente (Salamanca),with a production capacity of 200 million litres, ofwhich 5 million come from the conversion of biomassby means of a new technology that is beingdeveloped by Abengoa Bioenergy R&D. It is scheduledto start functioning commercially in December 2005.

Legislative Framework

The approval of the European Directives of Promotionand Detaxation of biofuels during the year 2003, hasdefined a stable frame in the long term for thebioethanol industry in Europe, having consolidatedtherefore the strategic target that results in an exportmarket for Abengoa Bioenergía and the developmentof new projects in the European Union.

Also on a national scale, important legislativeadvances have been obtained, that make Spain, andtherefore Abengoa Bioenergía, the unquestionableEuropean leader in the bioethanol market. Theapproval during the year 2003 of the transposition ofthe mentioned European directives on detaxation,with a new regulation of Special Taxes for theapplication of a total tax exemption for biofuels, aswell as the necessary legislative adaptation for theuse of blending of bioethanol with gasoline, hasresulted in an adequate frame in Spain for continuousimprovement in the development of the biofuelmarket.

Consumption and Production Figures for 2003 at plants in Spain

Ecocarburantes Bioetanol

Españoles Galicia Total

Consumption

Inputs

Cereal (Tm) 163,210 251,656 414,866

Wine alcohol (m3) 43,886 15,612 59,498

Gas Natural (Mwh) 624,355 818,263 1,442,619

Production

Outputs

Ethanol (m3) 97,704 106,829 204,533

DDGS (Tm) 72,205 83,349 155,554

Exported Electricity (Mwh) 155,895 156,931 312,826

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World Biofuels Conferences

For the third year running, Abengoa Bioenergía hasorganised the International Biofuels Conference,World Biofuels 2003, jointly with the FoundationFocus-Abengoa, which was celebrated in Seville onthe 13th and 14th of May, at the Foundation´sheadquarters in los Venerables.

These conferences fit within the framework of theactivities of the Forum of Thought on Environmentand Sustainable Development of Abengoa, aninstrument of reflection and action of the highestlevel which promotes knowledge and the creation ofpublic opinion regarding our future, and they broughttogether, as in previous years, international agentsfrom each sector, authorities, companies,agriculturists, oil companies, financial organizations,with top professionals in each case.

The annual organization in Seville of this InternationalBiofuels Conference appears amongst the activities ofthe Forum, and has been consolidated as anencounter of the highest quality and has been agenuine success in 2003 as in the two previous years.

Management Systems

During 2003, numerous projects related tomanagement systems have been carried out, underthe understanding that we act in a more and moreglobal market.

One of the implemented management systems hasbeen the Purchase application in Lotus Notes. Thisapplication arose from the conviction in theBioenergía Business Unit of the concept ofcentralization of purchases and the systematization ofsimilar purchases for the rest of the organization.

The main goal has been to channel all the purchase,order and invoice requests of each company ofBioenergía Business Group, with the object ofdiminishing the risks inherent to any purchase, usingthe requirements of the Norms of ObligatoryFulfillment (NOC), Safety and Hygiene and Quality, asindispensable elements included in the specificationof the requirements for any product and/or servicethat is to be bought and/or contracted.

Bioenergy

Abengoa Bioenergia and Exports to theEuropean Union

Abengoa Bioenergia´s bioethanol plants in Spain,Ecocarburantes Españoles and Bioetanol Galicia, havea surplus production capacity which allows them toexport a certain amount of bioethanol to countries inthe European Union, and this in turn, by means ofdevelopment of necessary infrastructures for theexpansion of biofuels, permits immediate access toEuropean markets.

An important factor in the competitiveness ofsupplying is the reliability and flexibility derived fromthe improvements made in the production processand an effective operation in Abengoa Bioenergía´splants, in addition to the capacity of introducing agreat volume of high quality bioethanol into themarket.

In 2003, the first exports were carried out, startingwith the supply of 10 million litres to Sweden to theSvenska Shell company for their depots in Goteborgand Lulea, to be used for blending with gasoline, andanother 1.4 million litres to Preem Petroleum AB fortheir depot in Goteborg, and have finished at the endof the year with the attainment of a new contract forthe supply of 23.2 million litres for the PCK refineryin Schwedt (Alemania), participated by BP, Shell, AGIPand Total, for ETBE production in 2004.

Abengoa Bioenergía´s strategy is directed towards acontinual attainment of long term agreements for thefollowing years, which will represent an excellentopportunity for end-consumers, and the opening upof the market by means of developing necessaryinfrastructures for the introduction of bioethanol, atthe same time an additional value for new projects inEurope that are being promoted by AbengoaBioenergía.

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The main effect obtained and since the BioenergíaBusiness Unit has production plants all over theworld, has been to control the purchase conditionsand invoicing of each company of Bioenergía. Thishas been done by means of this application sharing aglobal vision. Likewise, this application has joinedtogether the rest of information systems thatcompose the global scheme of our Business Unit suchas the accounting system (Baan), the managementtool of Rossmiman maintenance, etc… TelventOutsourcing has developed this application in LotusNotes, which has become our corporative tool forpurchases. It has all been done within the AbengoaInformation systems scheme.

Six Sigma Methodology as a Corporate Tool forContinuous Improvement

With the intention of creating qualitative andquantitative growth, providing competitive value toall the interested parts (internal clients, partners,shareholders and clients) and to maintain profit, theBioenergía Business Group has decided to integrate,during 2003, Six Sigma methodology in ourmanagement process and each one of the integratedplants of our Business Unit. This will allow us to shareknowledge between the plants located in differentcountries. Six Sigma has been during year 2003, atool of continuous improvement within the BusinessUnit, a key factor in our Integrated Quality System. Inaddition, it constitutes a key element for our capacityto provide Science, Solutions and Services, an offercollected in our new message to those interestedusing the motto “Science. Solutions. Service “.

The importance is in the creation of a solid frame bymeans of the optimization of the supply chain in ourbusiness to obtain the most effective and preciseoperations possible.

During 2003, 20 Six Sigma projects have been carriedout which is beginning to form part of the culturalchange within Business Unit. A concerted effort hasbeen made to train our personnel in thismethodology. These efforts required an investment in2003 of about 120,000 dollars and will require in2004 an investment of 100,000 dollars.

Integrated Management System in BioenergíaBusiness Unit

All the companies belonging to the BioenergyBusiness Unit depend on the implementation of anIntegrated Management System (S.G.I), to reinforcetheir commitment to Quality, Environment, Healthand Safety. The peculiarity of the Integrated Quality,Environment, Health and Safety Management Systemand the reason why the Bioenergy Business Unitchose this approach, lies in the implementation of aglobal and simplified model of three key aspects ofthe management of our Business Unit; thesatisfaction of our customers, the protection of theenvironment and the prevention of occupational risks.All of this being framed within a continuous andsustainable improvement process.

The result of this work has been enriching and hasgiven us a better approach to processes for thedevelopment, implementation and improvement ofthe effectiveness of the management system,increasing the satisfaction of our clients anddiminishing the environmental risks as well asoccupational risks. At present the companiesbelonging to the Bioenergía Business Group are in thefinal phase of obtaining the corresponding ISO 9001,ISO 14001 and OSHA 18001 certificates.

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U.S. Operations

Introduction

2003 was an active year for the U.S. operations. Thecompany name was changed from High PlainsCorporation to Abengoa Bioenergy Corporation totake full advantage of the international recognition ofAbengoa, and to further reinforce the Abengoaculture. In addition to changing the company name,the corporate offices have been relocated fromWichita, Kansas to St. Louis, Missouri to join with theheadquarters of the Bioenergy Business Unit.Abengoa Bioenergy Corporation is now the 4th largestethanol producer in the United States with an overall,annual capacity of more than 95 million gallons ofethanol. Abengoa Bioenergy Corporation currentlyoperates three plants located in the states of Kansas,Nebraska and New Mexico.

The beginning of 2003 marked the first shipments ofethanol into the state of California. This event, alongwith additional states banning the use of MTBE,ethanol’s competitive product, restored balance to themarket’s supply and demand. This resulted insignificantly improved pricing for ethanol throughout2003. Additional benefits were realized in the secondhalf of the year as the 2003-2004 corn cropdeveloped into one of the largest on record, resultingin improved prices for the single, largest cost-component. Continued advances in operationalefficiencies and variable and fixed cost reductions alsowere significant contributors to the improvedfinancial performance in 2003.

Many significant initiatives were accomplished in2003. Abengoa Bioenergy Corporation internalizedthe marketing and sales functions for 100% of its co-products. Abengoa Bioenergy Corporation achievedcorporate certification to the ISO 9001 standard.Complete implementation of an integratedpurchasing control and invoicing system wasachieved. Six-sigma process improvementmethodology was initiated with significant trainingand multiple projects at the York, Nebraska facility.Additionally, the York, Nebraska facility wasrecognized by the Nebraska Diplomats, a stateorganization commissioned to secure investments inthe Nebraska economy, as the winner of the

prestigious Nebraska Diplomat’s Outstanding BusinessInnovation award.

Building on the successes in 2003, and with theexpectation of a Renewable Fuels Standard becominglaw in 2004, coupled with the continued increase inethanol consumption as additional states eliminatethe use of MTBE, all indications are for a continuedpositive business climate in 2004.

Business Segment Activities

Plant Operations ResultsEthanol is a renewable fuel produced from plants, unlikepetroleum-based fossil fuels that have a limited supplyand are the major contributor of carbon dioxideemissions, a greenhouse gas.

Ethanol is one of the best tools we have to fight airpollution from vehicles. Ethanol contains 35% oxygen.Adding oxygen to fuel results in more complete fuelcombustion, reducing harmful tailpipe emissions.Ethanol also displaces the use of toxic gasolinecomponents such as benzene, a carcinogen. Ethanol isnon-toxic, water soluble and quickly biodegradable.

Ethanol reduces tailpipe carbon monoxide emissions byas much as 30%, exhaust VOC emissions by 12% andtoxic emissions by 30%.

Abengoa Bioenergy Corporation 2003 Consumptions and Production

Consumption (Input) York Colwich Portales Total

Grain (Bushel) 18,247,164 7,988,890 5,520,261 31,756,315

Wet Alcohol (gal.) 6,946,829 1,444,688 1,118,973 9,510,489

Electricity (kW) 49,070,812 32,477,549 27,468,000 109,016,361

Natural Gas (MMbtu) 1,633,849 180,285 275,180 2,089,314

Production (Output) York Colwich Portales Total

Bioethanol (gal.) 57,948,467 23,094,946 16,708,052 97,751,465

DDGS, Dry Tons 142,770 68,700 53,064 264,534

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The use of ethanol-blended fuels reduces greenhousegas emissions by 12-19% compared withconventional gasoline, according to Argonne NationalLaboratory.

The ethanol production process represents a carboncycle, where plants absorb carbon dioxide duringgrowth, “recycling” the carbon released during fuelcombustion.

Ethanol Market Overview and ABC market share& strategy

A soft market to start the year as a result of newproduction resulting in higher than normal inventorylevels recovered into a robust market late in the thirdquarter and throughout the fourth quarter. The late inthe year bull pricing market was fueled by two keymarket sources. The first contributing factor was as aresult of the further integration of ethanol supply intoCalifornia ahead of the January 1, 2004 ban on MTBEuse as an oxygenate in gasoline. The California marketis now expected to be well in excess of 900M gallonsannually. The second factor was driven by themovement of ethanol into storage facilities in theNortheastern US. This comes as a result of the sameban on MTBE for use in RFG gasoline in the states ofNew York and Connecticut, effective January 1, 2004,as well. These two Northeastern markets are expectedto consume in excess of 400M gallons annually. Ourmarketing focus has shifted from a Midwesternregional supplier to a nationwide supplier with over50% of our 2004 production already contracted forshipment to California. Two international petroleumcompanies comprise over 40% of this Californiacontracted production volume. A significant portion ofthis California volume will be shipped via theBurlington Northern Santa Fe “express train” whichbecame operational in the fourth quarter of 2003.

Solar Energyis absorbed bycom and otherbiomass crops

Solar Energy fromcrops converted intoliquid ethanol

Biomass containingcarbon is processedinto fuel

Ethanol is blendedwith gasoline to poweryour vehicle

Carbon dioxide isreleased as fuel burns

Carbon dioxide isrecycled by plants

as they grow

Carbon Cycle& Solar Energy

Conversion

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Feed Market Overview and ABC market share &strategy

In July, Abengoa Bioenergy Corporation formed aninternal feed marketing department to operate theCompany’s feed product sales and customer servicefunctions. Previously, feed products had been soldprimarily by a contracted marketing firm. Themarketing of feed products is a key function thatAbengoa Bioenergy decided to take within its exclusivecontrol, recognizing a great opportunity to develop anew marketing group within a company thatrecognizes the benefits of controlling all aspects of thedistribution of its feed products, from production todelivery to the end user. The new department wasfully operational by October and is directed by RichardEmery, who joined Abengoa Bioenergy after six yearsof leading the marketing and product developmentfunctions of a Nebraska Grain and Feed Co. The newmarketing department is supported at each US facilityby Plant Grain & Feed Merchandisers who are sourcingthe input grain while selling both wet and dry distillersgrains and solubles. These high protein animal feedproducts are currently used primarily as a cattle anddairy feed ingredient.

Abengoa’s commitment to quality and service isinternationally recognized, and the assumption of themarketing functions is a natural extension of theCompany’s strategic plans.

Feed Marketing Strategy

Abengoa Bioenergy Corporation is firmly committed todelivering the highest quality products and services toits U.S. customers at competitive prices. ABC strives toprovide its customers with the highest quality feedproducts available in the U.S. marketplace. ABC plansto continue to provide consistent product qualitythrough its serious commitment to research and

development. ABC has an extensive research anddevelopment initiative to improve product quality andconsistency. ABC is working with several majoruniversities on projects that will lead to thedevelopment of feed products which will meet thenutritional requirement for various feed markets such ascattle, dairy, swine, poultry, aquaculture and companionanimals. These internal and external research projectsdemonstrate ABC’s commitment to livestock nutrition.

ABC’s Feed Marketing group received high customersatisfaction ratings in recent customer surveys. Thiscommitment to continued customer satisfaction isessential to our business and demonstrates this focusby building strong customer relationships throughcommitment to improving customers’ service. In orderto guarantee a high level of customer satisfaction, ABChas chosen to market directly to its customers, ratherthan using third-party brokers to interact with ourcustomers.

Each ABC facility in the U.S. employs experienced grainand feed merchandisers dedicated to provide ABCcustomers with the most up-to-date marketinformation and logistics professionals to ensureaccurate and timely product delivery.

Management Systems

Because the Bioenergy Business Unit has productionplants all across the world, and in order to generatevalue and improve the operations in the organization,assuring effectiveness in all the processes, evaluatingrisks and assuring internal control, several andimportant actions were taken in order to implementstandardized the Management Systems in all theBusiness Unit.

One of the most relevant management systems wehave put in place during the 2003 was the PurchasingLotus Notes application. The main goal of thisapplication is to channel the Purchase requests, Orders

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and Invoices that generate the Orders in the differentcompanies dependent on the Bioenergy Business Unitand to minimize the risks inherent in any purchase,involving the Noc, the Health, Safety and the Quality asindispensable elements that must be contained in thespecification of requirements to a certain product and/or service being bought or contracted. The only way ofobtaining this is by using an application where a globalvision is shared.

Another important and relevant issue during the 2003about Management Systems was that the BioenergyBusiness Unit has launched its web page with astructure oriented towards “stakeholders” (customers,suppliers, shareholders and internal customers) with thegoal of strengthening our commitment with them andreinforcing our communication policy.

We understand that in a global market, the importanceof clear and accurate communication, and of amplediffusion, is an imperative objective for a company witha clear will of performance in markets of internationalscope as in our case.

Obviously, these are only the first steps focused towardsthe communication and management systems for ourBioenergy Business Unit.

Management System Integrated in the BioenergyBusiness Group

All the companies belonging to the Bioenergy BusinessUnit depend on the implementation of an IntegratedManagement System (S.G.I), to reinforce theircommitment to Quality, Environment, Health andSafety. The peculiarity of the Integrated System ofManagement of Quality, Environment, Health andSafety and the reason why the Bioenergy Business Unitchose this approach, lies in the implementation of aglobal and simplified model of three key aspects of themanagement of our Business Unit; the satisfaction ofour customers, the protection of the environment andthe prevention of occupational risks. All of this beingframed within a continuous and sustainableimprovement process.

The S.G.I promotes the adoption of an approach toprocesses for the development, implementation andimprovement of the effectiveness of the managementsystem, with the aim of increasing customer satisfactionand diminishing both environmental and occupationalrisks. The risks will be identified and the necessaryprocesses of management with the aim of controllingthem will be determined. As a system based on the

Feed Target Market Areas

management by processes, the key processes should beidentified, to measure and follow-up for continuousimprovement. The tool for its development consists inthe implantation which intends to preventnon-conforming products, damage to the environment,and to assure that its operation is adapted to theconcept of accident prevention and the integration ofthe prevention of occupational risks within all activitiesand processes. Risks will be identified and the necessaryprocesses of management with the aim of controllingthem will be determined.

All the societies of the Bioenergy Business Unit have ascriteria that their products, services and work are inagreement with the established norms andspecifications that affect them, since quality andsecurity are essential for the economic viability of thecompany. Also the implementation of this S.G.I forcesus to assure that the significant environmental aspectsare identified associated to their activities, consideringregular conditions of operation and the associatedpotential impacts to reasonably foreseeable emergencysituations.

Research and Development

Research and development is one of the basic pillarsof Abengoa Bioenergy strategy, concentrated inAbengoa Bioenergy R&D – which is a subsidiarywholly owned by Abengoa Bioenergy Corporationwith its head office in St. Louis- its activity and effortsin the area of research and development.

York

Colwich

Portales

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Workforce in Usa

Usa Total employees

Colwich 37

Portales 42

York 53

Corporativo Usa 31

Abengoa Bionergy R&D 9

Total workforce in Usa 172

Abengoa Bioenergy started up a four-year researchand development plan in 2002 focusing primarily onthe following areas:

• Increase efficiency in ethanol production byconverting and fermenting the residual starch andfibre contained in DGS.

• Increase in protein content of DGS for use inanimal nutrition.

• Conversion of agriculture residues into ethanol(biomass).

• Development of future markets for final uses ofethanol (FFV, e-diesel and fuel cells).

In 2003, the research and development plan startedin 2002 has been promoted, reaching importantachievements, amongst which the following shouldbe highlighted:

In February 2003 a contract was signed with theEuropean Union for the development of an R&Dproject with regard to the yearly production of 200million litres of ethanol from cereal and biomass inBabilafuente (Salamanca), under the 5th FrameworkProgramme. The project has a budget of 11,8 millioneuros and will last 4 years.

In May of 2003 a contract was signed with theDepartment of Energy of the United States to developand to demonstrate the technology “Dry Mill” and ofbiomass for the conversion to ethanol of the DDGSand the biomass from maize. The total investment ofthe project is 35.4 million dollars.

In May of 2003 the company Greencell wasincorporated by Abengoa Bioenergy, with the clearobjective to develop the technology of fuel cells fromethanol. During 2003, the research phase on alaboratory scale was finalized and the construction ofa first prototype of 10 kW was initiated.

In October of 2002 the inauguration act of theproject of the pilot plant of Abengoa Bioenergy R&Din York took place, in which the tests included in theproject of conversion of the residual starch andbiomass will be developed. These works are includedin the project signed this same year with theDepartment of Energy of the United States.

In December of 2003 the contract of the RenewalProject of 6th Framework Programme was signed forthe renewable fuel development for advanced motorsby means of gasification of biomass and catalyticsynthesis of fuels. This project, in which AbengoaBioenergía participates as leader in the ethanolproduction subproject, has a budget of 20 millioneuro.

Abengoa Bioenergy R&D carries out its research projectsin close collaboration with the most importantuniversities, research centres and companies in the sectorof biofuels, in Europe as well as in America.