US biofuel refinery secures govt investment

A US biofuel firm has secured a government loan to make ethanol from poplar trees.

ZeaChem, which is based in Lakewood, Colorado, is a developer of biorefineries for the conversion of wood and other materials into fuels and chemicals.

Financed in part with a $232 million loan guarantee from the US Department of Agriculture, ZeaChem plans a biofuel refinery in Boardman capable of producing up to 25 million gallons of ethanol per year.

The plant will produce bio-based fuels and chemicals from woody biomass and agricultural residues "with the highest yield, lowest capital cost and lowest carbon footprint in the industry", the company said.

The commercial facility will create 188 direct construction jobs and 65 full-time operations jobs, plus an additional 242 indirect jobs for construction and full-time operations.

Jim Imbler, president and chief executive officer of ZeaChem, said: "This commitment allows us to move forward with securing financing, beginning construction, creating jobs in the community, and producing economical and sustainable products for the fuel and chemical industries."

Posted by Claire Manning