LAKEWOOD, COLORADO - ZeaChem Inc., a developer of biorefineries for the conversion of renewable biomass into sustainable fuels and chemicals, today announced the accomplishment of two key financial milestones in the construction of its 250,000 gallon-per-year biorefinery in Boardman, Ore. First, the company has obtained a guaranteed maximum price (GMP), under the Engineering, Procurement and Construction (EPC) agreements with engineering firm Burns & McDonnell, for construction of the core facility. The core facility will convert sugars into acetic acid and then ethyl acetate, the chemical precursors, under ZeaChem’s process, to the production of ethanol. Second, ZeaChem has secured full construction funding for the core facility. The $25 million grant from the U.S. DOE will be used to fund the independent front and back-end cellulosic process components, enabling ZeaChem to produce fuel grade ethanol as well as intermediate chemicals from non-food related biomass.

"We look forward to helping ZeaChem deploy their technology."

"Since 1898 we have built a reputation of making our customers successful with practical technology advancements and predictable costs," said John Nobles, President, Process & Industrial Group at Burns & McDonnell. "We look forward to helping ZeaChem deploy their technology."

The core unit of the biorefinery is currently under construction at the site location in Boardman and foundations are being poured.

"ZeaChem has successfully completed the financial milestones to ensure that our biorefinery project can be completed on budget and on schedule," said Jim Imbler, president and CEO of ZeaChem Inc. "We look forward to beginning cellulosic ethanol production in 2011."

ZeaChem will develop commercial scale biorefineries upon successful operations at the Boardman facility.

SOURCE: ZeaChem Inc.