Brawley: The planned $1.28-billion Sugar Valley Energy renewable fuel and energy campus in Imperial County has received a California Jobs First Grant through the Southern Border Coalition. The project is expected to become the first industrial-scale sugarcane-to-ethanol facility in the United States, reports The Desert Review.
California Ethanol and Power (CE+P) and the Imperial Valley Economic Development Corporation (IVEDC) announced the grant award in December. The Sugar Valley Energy campus is planned for a 160-acre site on unincorporated land in Brawley, located on Keystone Road between Dogwood Road and Highway 111.
Dave Rubenstein, chief executive of Sugar Valley Energy, and Tim Kelley, president and chief executive of IVEDC, said the project has been years in the making. Kelley said his association with Rubenstein dates back more than 17 years, when they first connected at a renewable energy conference in Imperial County, where opportunities for ethanol production in the region were discussed.
Since then, Kelley said both sides have worked closely to advance the project, covering farming, approvals and financing. He said the two organisations have remained in regular contact while assessing whether ethanol production from sugarcane could be developed successfully in Imperial County.
Rubenstein said the project involves multiple partners and agencies, describing it as a large and detailed undertaking. He said the development team includes engineering support from the DuBose Design Group, along with coordination with the Imperial Irrigation District and county planning and public works departments. Hoffman Construction has been selected as the engineering, procurement and construction contractor.
IVEDC will continue to work with local growers to ensure enough farmland is available for sugarcane cultivation to support the facility. According to Sugar Valley Energy, sugarcane grown on more than 48,000 acres in Imperial County will supply the plant, creating new income opportunities for over 50 farming operations and supporting more than 2,000 agricultural jobs.
The Sugar Valley campus will function as a biorefinery, producing ethanol, renewable natural gas and electricity from sugarcane. Rubenstein said the process is based on long-established methods used in Brazil, adapted for local conditions. The plant is expected to operate for 11 months each year, shutting down in July due to extreme heat, during which maintenance work will be carried out.
During operations, sugarcane will be processed to extract sugars that are fermented into ethanol. The remaining plant material will be used to generate energy, with byproduct gas fueling a power plant. Steam and electricity produced will run the facility, with surplus power exported to the grid.
Rubenstein said the project is expected to create new revenue streams for farmers, who will grow, harvest and deliver sugarcane to the plant. He said around 200 people are expected to be employed on site each year, including engineers and plant operators, with wider economic benefits staying within the local area.
An economic impact analysis prepared by Circle Analytics for CE+P in October 2025 estimates that the facility will produce about 68 million gallons of low-carbon ethanol annually, along with 49 megawatts of electricity from biomass and 737 million cubic feet of pipeline-quality biomethane.
The study estimates the total economic impact of the project at more than $2.9 billion. Construction costs and one year of operating revenue are expected to exceed $2 billion, with additional economic activity generating nearly $878 million through multiplier effects. The local economic impact during construction and the first year of operations is projected to exceed $1.4 billion.
The analysis also estimates nearly $988.4 million in labour income during construction and the first year of operation, capital income of more than $385 million, and about $85 million in indirect business taxes. A total of more than 28,000 full- and part-time jobs are expected to be supported during this period.
Rubenstein said all major development components are now in place, with CE+P set to hold a minority stake in the project. He said about $70 million has already been invested and that the focus is now on securing equity financing. Construction is expected to take 36 months, with the plant targeted to begin operations in 2029.
Once operational, the facility is expected to generate about 42 megawatts of electricity, with roughly half supplied to the grid and the remainder used on site. Rubenstein said the project is expected to introduce a stable and profitable crop for farmers and establish a new long-term economic base for the region.
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