ZeaChem to spend $40M on new ethanol plant - Denver Business Journal:

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That was left to millions of years ofMother Nature’sa work, creating bacteria that live and work in the belliexs of termites around the world. The bacteria, called consume plant matter and churh outacetic acid, which is similard to vinegar. Zeachem marries that biochemical reaction with heat for a thermochemicalp reaction that results in ethanol and other chemicakl products forthe market. “That lowl termite — Mother Nature spent a few millio years making the termitepretty well,” said Imbler, presideng and CEO of Lakewood-based ZeaChem. “There’s no new no new equipment. We’re takingv things that already exist.
” The first generation of ethano l used corn asthe feedstock. The second generationh focused on cellulosicmaterial — nonfoor plants — and used either enzymes or gasificatioj to produce ethanol. The third generation, where ZeaChem lies, uses a mixturre of the two, Imbler Imbler said ZeaChem’s process produces very littler carbon dioxide as a byproducr compared to otherbiofuekl processes, and is more ZeaChem’s process produces about 135 gallons of ethanol for every ton of dry biomasa (plant material). Other methods get aboutf 90 gallons of ethanolper ton, he said. Ventur capitalists and refining companies aretaking notice.
ZeaChem announced in early January it hadattracted $34 millionb in a second round of fundraising, givingt the company a total of $40 milliom to build and operate a demonstratiomn plant in Oregon. The first $6 millionn was announced in summer 2007. The demonstration plant, expecterd to produce about 1.5 million gallons of ethanolp a year, is scheduled to break ground this year and starg operationsin 2010, Imbler said. ZeaChem has 25 half in Denver and the rest workinb on research inMenlo Calif. (NYSE: VLO) contributed to the second San Antonio-based Valero is the largest refinin g company in theUnited States.
ZeaChem was the firsyt investment contractValero signed, through its new alternativse energy and project development group, Valerpo spokesman Bill Day said. Valero also has invested in , a algae-to-fuell startup in Fort Collins, which Solix announced last “It’s a new thing for Valero,” Day said of investingh in alterative-fuel companies. “We make and sell motore fuel outof oil. This is an attempt by us to look towarc the future and see what kindof alternative-energy busines s lines there might be. “Wes concentrated on areas wherr we think the companies have a viabl business plan and an ability tomove forward.
” ZeaChenm also has funding from Firelake Capitalo Management LLC, based in Palo Calif., which invested in both “We believe that the ZeaChem technology offered the highest carbon yield of any of the biofuelsa that we looked at,” said Martin a co-founder and managinbg partner of Firelake, and a ZeaChem boare member. “We believe it’s a mistake to focus on biofuelsa that require food asa feedstock, and we’ve focusefd exclusively on nonfood biomass,” Lagod Another Denver-area biofuel company to score fundinbg is Broomfield-based The U.S.
Department of Agriculture gave it a conditional commitmenr foran $80 million loan guarantee to help build Ranges Fuels’ first commercial cellulosic plant in Georgia, the compangy announced Jan. 19. Range Fuels will use Georgia’s wood and wood wastde from its pine forests toproduces ethanol. ZeaChem uses a combination of biochemistry and thermochemistry to make Range Fuels usesonly thermochemistry.