ZeaChem, a developer of biorefineries for converting renewable biomass into useable fuels and chemicals, declared that it has overcome and achieved two important financial decisions related to its 250,000 gallon-per-year production capability biorefinery, located in Boardman Ore.
The company has entered into an accord for guaranteed maximum price (GMP) under an Engineering, Procurement and Construction (EPC) accord with Burns and McDonnell, an engineering company for building the core facility of the plant. The core facility will utilize ZeaChem’s patented chemical precursors to change sugars into acetic acid and afterwards into ethyl acetate to produce ethanol. Secondly, the company has ensured full funding for the building of its core facility. The US DOE grant amounting to $25 million will be utilized to finance the independent front and back-end components of cellulosic process thus allowing ZeaChem to manufacture ethanol that can be utilized as fuel and also intermediate chemicals from biomass products that are not used as food. The company is planning to commence commercial production after the successful installation of the Boardman Ore facility.
Jim Imbler, ZeaChem’s president and CEO, said that his company has effectively made the financial arrangements to complete the biorefinery project within the budget and as planned. He added that his company is looking forward to start the production of cellulosic ethanol in 2011.