The $575m project, which will also use sweet sorghum in addition to sugarcane, is expected to produce 66 million gallons of ethanol, enough electricity to meet the needs of 35,000 homes, and enough biomethane to heat 10,000 homes per year.
The project has entered into long term contract at locked-in prices with an international oil company for the sale of ethanol produced from the sugarcane purchased from local farmers, providing stability in profit margins desired by the refineries.
The ethanol produced in this refinery will meet low carbon standards for California and other states and additionally will be cheaper than foreign produced ethanol which attracts 54% import tariff.
States like Alabama, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina and Texas that provide conducive conditions for growing sugarcane can build sugarcane ethanol refineries and create thousands of new jobs.
Clean Energy Capital CEO, Scott Brittenham said that there will be strong demand for ethanol from the refinery because the ethanol produced will meet stringent low carbon fuel mandates imposed anywhere in the US.
“The ability to lock in a significant and sustainable profit margin makes an investment in this project compelling for investors,” Brittenham said.
