The Demand for Ethanol

Ethanol is a clean-burning, high-octane renewable biofuel that is produced domestically in the United States from renewable sources. Ethanol blends increase fuel octane ratings, decrease harmful fossil fuel emissions, reduce costs at the pump and extend the country's overall supply of gasoline. While the majority of U.S. ethanol is made from corn, ethanol also can be produced from other feedstocks such as grain sorghum and sugarcane.

As the United States continues to realize the economic and environmental benefits of ethanol, demand is increasing:

  • The Energy Independence and Security Act of 2007 and Renewable Fuel Standard (RFS) mandate the use of 9 billion gallons of renewable fuels in the United States in 2008, increasing incrementally to 36 billion gallons in 2022.
  • The RFS specifies the use of "advanced" biofuels other than corn-derived ethanol for meeting certain greenhouse gas reduction requirements, such as sugarcane-ethanol.
  • The California Low Carbon Fuel Standard requires reduction of carbon intensity of fuel by 20% by 2030.
  • California's Renewables Portfolio Standard (RPS) requiring retails sales from renewables by the end of 2013, 25 percent by the end of 2016, and the 33 percent requirement being met by the end of 2020.

Ethanol is an increasingly important alternative energy in the U.S. economy. Ethanol helps reduce the United States dependency on foreign energy sources by eliminating the import of millions of barrels of oil. Domestic ethanol production also keeps energy investment and expenditures in the U.S., delivering economic vitality to states and local communities. Driven by the risk to American economic independence and national security from high-priced, imported crude oil and the threat of global warming, CE+P is responding to the growing demand in California and the United States for renewable fuels and green power by using a sustainable, domestically produced, non-food feedstock: sugarcane.

In California, all electric utilities are required by state mandate to purchase or generate from renewable resources 20% of the electricity delivered to customers by 2010. That percentage increases to 33% by 2020. Reports to the California Energy Commission indicate that the utilities are having difficulties meeting that requirement, increasing the opportunities for companies such as CE+P that offer green power. According to a recent report from the National Renewable Energy Laboratory, this demand for clean energy will out-pace production by 37% unless a number of facilities are rushed into production.

CE+P is responding to this opportunity by initially developing ethanol production facilities in California's Imperial Valley. At capacity, these CE+P facilities will produce:

  • 68 million gallons of low-carbon (22 CI) ethanol
  • 32 MW of exportable baseload green electricity
  • 750 million SCF pipeline quality bio-gas
  • 28,000 tons of low carbon soil amendment
  • 200,000 tons of biogenic CO2
  • 200,000 tons of high-value field residue
  • 5,000 tons green fly ash

CE+P is committed to producing sustainable and renewable green energy in California for use in California from locally grown sugarcane.

Our Story

California Ethanol & Power, LLC intends to sustainably produce energy in California for use in California from locally grown sugarcane, the right renewable resource. CE+P intends to develop, finance, install, own and operate sugarcane-to-ethanol-and-electricity plants worldwide, starting with state-of-the-art facilities in California's Imperial Valley, one of the best places in the world to grow sugarcane. CE+P is responding to the increasing market demand for renewable fuels and green power while avoiding the economic and political issues associated with corn-based ethanol production. CE+P's sugarcane-based ethanol has substantial economic, political and environmental advantages, including lower feedstock cost, higher co-product value, location advantages and premium ethanol prices. Importantly, CE+P's facilities will use much less water, produce more than 13 times as much energy per unit of fossil energy used and emits over 95% fewer greenhouse gas reductions on a full fuel cycle analysis basis than gasoline.

By converting sugarcane into fuel-grade ethanol, electricity, and co-products, CE+P will:

In Imperial County

Create agricultural and technical green jobs.

Provide local farmers with a stable revenue stream from an alternative, sustainable crop.

Spur ancillary growth and economic opportunity.

In California

Provide a lower cost, renewable and environmentally friendlier alternative to gas.

Provide renewable electricity to the power grid.

Contribute to California's goals of reducing greenhouse gas emissions and meeting the Low Carbon Fuel Standard.

In the United States

Help ensure security and energy independence.

Substantially reduce greenhouse gas emissions.

Not replace or impact the price or supply of food.

CE+P will produce sustainable and renewable energy that help California address environmental issues and bolster California's economy while not depleting natural resources.