California Ethanol + Power Advances Through DOE Loan Program
California Ethanol and Power (CE+P) today announced that it has cleared the U.S. Department of Energy’s Office of Lending Programs Part I, Title XVII, Innovative Energy Loan Guarantee Program and renewable energy projects and efficient energy project solicitation, a rigorous first stage of review to qualify projects eligible for the program. As a result, CE+P was asked to submit a Part II application for a federal loan guarantee, according to Ron Blake, chief financial officer of California Ethanol+Power.
“This milestone demonstrates that Sugar Valley Energy meets the rigorous initial evaluation standards set by the Department of Energy for renewable energy innovation, as an invitation to Part II is not something the office lending programs lightly expands,” Blake said. “Advanced biofuels are a critical part of our nation’s energy future, and locally produced sugarcane ethanol will provide a quality renewable resource to meet our energy needs with a much lower carbon intensity than alternative sources. imported.”
If approved, the DOE loan would be used to construct the planned and licensed 160-acre campus of Sugar Valley Energy, California Ethanol + Power, combining an advanced ethanol biorefinery, bioelectric and biogas generation, and sewage treatment facilities in Imperial County, California.
CE+P is currently in the process of securing equity and bond financing for Sugar Valley Energy, which is expected to begin construction this year.
The sugarcane ethanol to be produced at Sugar Valley Energy is expected to have a significantly lower carbon intensity (CI) score than the corn ethanol currently produced in the country, and the planned biorefinery will incorporate new generation to reduce emissions throughout its operation.
A significant part of California Ethanol + Power’s vision for Sugar Valley Energy is to contract with local agricultural producers to establish approximately 48,000 acres of sugar cane production in the Imperial Valley. Sugarcane feedstock will produce more than 70 million gallons of low-carbon ethanol each year as well as up to 49 megawatts of electricity, helping meet California’s reduction targets emissions, renewable energy and low carbon energy.
CE+P has obtained all major environmental permits and certifications necessary to develop the Sugar Valley Energy project and has entered into a long-term purchase and marketing agreement with agribusiness leader CHS Inc. to sell the ethanol produced on the new energy campus.
According to third-party economic analysis, Sugar Valley Energy is expected to have a positive economic impact of $1.7 billion through construction and the first year of operation, and support more than 15,000 direct and indirect jobs in the surrounding region over during the same period. The Sugar Valley Energy development will also establish critical infrastructure for Imperial Valley’s future growth by providing access to a critical water treatment plant and nearby energy capacity.