News
October 3, 2025

California Ethanol + Power, Hoffman Ink EPC Deal

Caroline Raffetto

California Ethanol + Power has officially entered into a target price EPC (Engineering, Procurement, and Construction) agreement with Hoffman Construction Company for the major Sugar Valley Energy (SVE) initiative in Imperial County. The October 2, 2025 announcement confirms a significant advancement in bringing the multi-plant renewable energy campus to final development and construction stages.

Hoffman Construction—founded in 1922 and recognized as one of the largest full-service general contractors in the United States—plans to manage the work across the 160-acre Imperial Valley site with support from a network of seasoned subcontractors. The company has active operations in Arizona, California, Idaho, Oregon, Washington, and Texas, and brings a diversified background in industrial, aviation, institutional, healthcare, infrastructure, energy, and commercial builds.

For the SVE project, Hoffman expects to bring on subcontractors like Harder Mechanical and Dynalectric of San Diego, both known for large-scale industrial and energy construction capabilities. Major equipment suppliers are also anticipated to play an integrated role.

“Hoffman Construction Company is the ideal partner for this project,” said Dave Rubenstein, president and CEO of California Ethanol + Power. “Their outstanding team will ensure Sugar Valley Energy is completed on time and on budget, bringing jobs and a positive financial impact for Imperial County. This agreement is the culmination of months of cooperation and review, and along with diligent financing efforts will advance the project to the final stages of our development process.”

Tony Johnson, executive vice president and chief operating officer of Hoffman Construction Company, emphasized the company’s enthusiasm and mission-driven approach:

“This Project is an exciting opportunity to utilize Hoffman’s depth of expertise in process plant construction while delivering meaningful value to the community. We are committed to executing this facility safely, efficiently, and with the collaborative spirit and grit that define our work.”

Subcontractor Expertise and Project Delivery Model

Harder Mechanical, headquartered in Portland and active across the West, will support industrial process and mechanical components. The firm maintains regional offices in Phoenix, Richmond (CA), Reno, and Salt Lake City, and is widely recognized for safety and on-budget performance.

Dynalectric San Diego, a top regional electrical construction provider, will deliver design, preconstruction, and installation services across low, medium, and high voltage systems. As part of EMCOR Group, the company has divisions spanning Arizona, Colorado, Nevada, Oregon and Washington, D.C.

The design and engineering roadmap will incorporate major vendors early through an Integrated Project Delivery (IPD) strategy. Work is expected to begin with a Limited Notice to Proceed and transition toward a Guaranteed Maximum Price (GMP) structure.

Broader Development Team and Oversight

The EPC team will work alongside existing development and advisory partners, including:

  • SOCOTEC Advisory, LLC (development advisors)
  • Black & Veatch (global engineering and independent design review and target pricing)
  • DuBose Design Group of El Centro (civil engineering, infrastructure, and site planning)

About Sugar Valley Energy

Located in the heart of the Imperial Valley’s agricultural region, SVE is a shovel-ready, multi-component renewable energy campus composed of:

  • A sugarcane-to-ethanol biorefinery
  • A bioelectric power plant
  • A wastewater treatment and biogas production facility

The project is designed to generate essential infrastructure for surrounding communities, including renewable power, wastewater capacity, and biogas supply. The combined development and construction investment exceeds $1 billion, representing a major economic catalyst for Imperial County.

SVE will create a stable long-term market for approximately 50,000 acres of sugarcane, securing agreements with local farmers to provide a profitable and renewable feedstock. Sugarcane’s water usage is comparable to dominant regional crops and is well-suited for the Imperial Valley climate.

When completed, the facility aims to create new jobs, expand local infrastructure, and build a long-term agricultural revenue stream tied to clean fuels and emerging energy markets.

Originally reported by California Ethanol + Power in Ethanol Producer.

Get the inside scoop on the latest trending construction industry news and insights directly in your inbox.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.