Grainnet

Brawley, CA--California Ethanol & Power, LLC (CE&P) announced June 27 that it has secured investment from a group of southern California business people for preliminary work on the first of a series of plants in California’s Imperial Valley that will each convert 30,000 acres of sugarcane into 50 million gallons of fuel-grade ethanol per year (MGY) and produce 30 megawatts of electricity.

CE&P also announced it has awarded a contract to Washington Group International (NYSE: WNG) to provide initial engineering support for the project, with the intent to expand Washington Group’s role as the project advances.

“Washington Group International is pleased to be a part of this exciting project, adding to our extensive portfolio of projects serving the energy sector,” said David B. Richmond, vice president of business development in Washington Group’s Industrial/Process Business Unit.

The owners and management of CE&P believe that the use of domestic renewable fuels, particularly ethanol, represents a significant means by which to reduce the greenhouse gas emissions that recent United Nations’ Intergovernmental Panel on Climate Change reports have identified as a major cause of global warming.

CE&P has contracted with Batley Farms, LLC to grow the 4,000 acres of seed cane that will be propagated to plant the 30,000 acres of sugarcane required for CE&P’s first plant.

In addition, Batley Enterprises, Inc. has agreed to lease to CE&P, with an option to purchase, a 249-acre site expected to be included in an Imperial Valley Enterprise Zone; CE&P has retained deBoom & Associates to lead the permitting of the site.

According to CE&P Vice President Nora C. Batley, who is also the General Manager of Batley Farms, “Our family has been growing and processing crops in the Imperial Valley for almost 100 years.

"Utilizing the unique capabilities of the Imperial Valley to grow sugarcane to replace crops that have become marginally profitable for farmers and produce a valuable renewable fuel greatly in demand in California makes a great deal of sense for all concerned.”

William R. Batley, Jr., CE&P chairman, concurs: “That is exactly why the Batley family has been supporting a sugarcane-to-ethanol program in the Imperial Valley since 2000, including enlisting the assis-tance of Washington Group International.”

CE&P projects its per-gallon of ethanol production cost to be substantially less than that of both Midwest corn-based plants and California plants that use imported corn, particularly as corn prices trend over $3 per bushel.

In addition, and unlike corn-based plants, each gallon of CE&P’s ethanol will generate 1.5 gallons equivalent of Renewable Fuel Credits under the Energy Policy Act of 2005 that can be sold to allow blenders to meet their Renewable Fuel Stan-dard obligations.

Further, CE&P will benefit from a number of California-specific renewable fuels incentives programs.

•California Ethanol & Power, LLC’s management team is comprised of experienced agricul-tural and renewable fuels industry executives as well as project development and financing professionals. Interested parties should contact Nora C. Batley (see below).

•Washington Group International (NYSE: WNG) provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide.

Headquartered in Boise, ID, with more than $3 billion in annual revenue, the company has approximately 25,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation, and water resources.

See Related Websites/Articles:

• Washington Group International
• Nora Batley E-Mail

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