The construction of plant in the Imperial Valley of California is scheduled to begin in the first quarter of 2014, after securing regulatory and financial approvals.

As a part of the collaboration, Beta Renewables will provide PROESA technology to process cane feedstock, bagasse and residual cane straw, in order to produce cellulosic ethanol.

Commenting on the developments, Canergy CEO Tim Brummels said that the project will support California’s efforts to reduce their carbon footprint through 2020.

"We have completed extensive research and have concluded that PROESA® Technology is both ready now and is the most advanced and competitive cellulosic platform in the marketplace today," added Brummels.

The project is expected to be operational in 2016.

Chemtex president and Beta Renewables CEO Guido Ghisolfi stated: "Large scale commercialization of cellulosic ethanol projects is taking off and this is an important project for California to support its drive towards lower carbon footprints."