ZeaChem Inc. (Lakewood, Colo.; www.zeachem.com) a developer of biorefineries for the conversion of renewable biomass into sustainable fuels and chemicals, today announced it has signed a long-term binding term sheet with GreenWood Tree Farm Fund (GTFF) to supply hybrid poplar woody biomass for its first commercial cellulosic biorefinery. GTFF’s existing tree farms are in close proximity to the biorefinery.
ZeaChem will integrate feedstock from a portion of GTFF’s residual fiber with local agricultural residue suppliers to achieve feedstock costs 50% less compared to Brazilian sugar cane and 80% less compared to corn based processes. Through this combination of forest and agricultural residuals, ZeaChem has secured 100% of the feedstock supply for the first commercial biorefinery.
Under the agreement, GTFF will be the primary feedstock supplier for ZeaChem’s first commercial biorefinery. GTFF will supply cellulosic biomass from its existing poplar plantations to the biorefinery, offering new markets for its wood products. ZeaChem’s first commercial biorefinery is expected to have capacity of 25M gallons per year (GPY) and to be located in Boardman, Oregon.
An existing GTFF hybrid poplar tree plantation near Boardman supplies feedstock to the facility, minimizing the transportation and logistics costs of cellulosic biofuel and bio-based chemical production. Hybrid poplar trees are an excellent cellulosic feedstock because of their high yield per acre, short rotation and ability to regenerate after harvest, providing superior economic and environmental benefits. ZeaChem’s demonstration plant in Boardman, Ore. will begin to come online in 2011.