Biofuel company ZeaChem Inc. has finalized a Cooperative Agreement with the U.S. Department of Energy (DOE) for a $25 million grant that will be used to construct and operate a cellulosic ethanol refinery in Oregon.
Cellulosic ethanol production capability will be added to the core
ZeaChem technology, which produces ethyl acetate, the chemical
precursor to ethanol. ZeaChem said it will begin producing cellulosic
ethanol in 2011 at the company’s 250,000 gallon-per-year biorefinery, to
be located in Boardman, Oregon.
ZeaChem says its indirect approach to biofuel production leapfrogs
the yield and carbon dioxide (CO2) problems associated with traditional
and cellulosic based biorefinery processes.
The Colorado-based company uses naturally occring bacteria, called an acetogen, to process sugars. Acetogens are highly robust and, unlike yeast, produce no carbon dioxide (CO2) during the fermentation process. ZeaChem has successfully produced acetogens at the lab scale for over 1,000 fermentation trials of sugars as well as hydrolyzate derived from cellulosic biomass.
The grant is awarded by the Office of Energy Efficiency and Renewable Energy (EERE), Biomass Program, and funded by the American Recovery and Reinvestment Act (ARRA). The agreement allows ZeaChem to begin receiving the first phase of funding from the grant.
Jim Imbler, president and CEO of ZeaChem, said the funding will accelerate the company’s progress toward commercialization.
Oil company Valero (NYSE: VLO) is among ZeaChem’s investors.
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