The Oregonian and the Business Journal are reporting that ZeaChem, Inc., a Colorado based cellulosic ethanol maker, has been awarded a $25 million federal stimulus grant. The money will be used for its bio-fuel plant currently under construction in Boardman.
According to the Oregonian:
The U.S. Department of Energy grant, announced today, will help Colorado-based ZeaChem build a $73.4 million demonstration plant. The company says the “core technology” of the plant will come on line next year.
Woody “cellulosic” feedstocks — from trees to switch grass to forest slash — are not food crops, don’t require fertilizer and can grow on marginal lands. As feedstocks, they should be more stable in price than food crops such as corn and soybeans.
But the technology for breaking down cellulose is still developing, and critics question whether advanced biofuels will be able to compete on cost with conventional fuel.
ZeaChem plans a 250,000-gallon capacity demonstration plant in Boardman. The company will take fast-growing poplar trees from a nearby 17,000-acre tree farm owned by GreenWood Resources of Portland, then convert the material to ethanol using microbes found in termites.
Additional feedstocks, including agricultural residues, will also be evaluated in the pilot plant, the energy department said.
