30 Hottest Companies in Renewable Chemicals sneak preview: ZeaChem

May 26, 2011 | admin

Note to Community members: Welcome to the sneak preview of the 30 Hottest Companies in Renewable Chemicals competition. This month, we are profiling nominees (not winners). Here above, we are asking you to rate the companies. Digest Community member ratings will form 33 percent of the overall ballot for this years Hot 30.

Company name: ZeaChem

Company description:

ZeaChem Inc. has developed a cellulose-based biorefinery platform capable of producing advanced ethanol, fuels and chemicals. Our indirect approach leapfrogs the yield and carbon dioxide (CO₂) problems associated with traditional and cellulosic based processes.

ZeaChem’s patented process offers the highest yield, at the lowest cost, with the lowest fossil carbon footprint of any known biorefining method.

Address:

Union Tower
165 South Union Boulevard
Suite 380
Lakewood, CO 80228

Year Founded:

2002

Chief Executive Officer:

Jim Imbler

Annual Revenues:

N/A

Major Investors (if a public company, please provide trading symbol and exchange).

Firelake Capital

Mohr, Davidow Ventures

Globespan Capital Partners

PrairieGold Venture Partners

Valero Energy Corporation (NYSE = VLO)

Type of Processing Technology(ies) : (if applicable)

ZeaChem combines the best of biochemical fermentation and thermochemical processes into a hybrid process that achieves 40% higher yield than other cellulosic processes. ZeaChem’s patented biorefining process uses an acetogen – a species of bacteria adapted to digest the tough carbon chains of cellulose – to extract the maximum amount of energy available from the feedstock. ZeaChem offers the highest yield, lowest production cost and lowest carbon emissions profile of any known biorefining process. See our Technology Overview and Acetogen fact sheets for more information.

Products: (renewable chemicals (base, fine, speciality, or platform), or bio-based materials (plastics, polymers, monomers, resins, lubricants, inks, detergents, surfactants, rubbers, adhesives, hardeners, additives, or other materials)

A unique differentiator of ZeaChem’s technology is the ability to produce a range of products to serve a variety of market sectors from a single facility. Within each product platform, ZeaChem will produce various intermediate chemicals and biofuels. Financially, bio-based chemicals offer major new market opportunities and value to the company, At this time, ZeaChem is deploying the C2 product platform which includes acetic acid, an intermediate chemical building block, and ethyl acetate, which is used in paints, lacquers and solvents and has a market value of $2.2B. The next product platform that will be scaled up is the C3 product chain which includes the $95B propylene market for bio-based plastics.

ZeaChem Carbon Chain Product Groups

C2 Chain

C3 Chain

C4 Chain

C6 Chain

Acetic Acid
Ethyl Acetate
Ethanol
Ethylene
Ethylene Glycol

Lactic Acid

· Propylene Glycol
· Acrylic Acid & Esters

Propionic Acid

· Propylene
· Methacrylic Acid &
· Esters
· Diluent

Butanol

Hexanol
Hexene

Production facilities will be capable of producing the products that will yield the best margin.

Feedstocks:

The ZeaChem process is feedstock agnostic and can accept feedstock from a variety of sources including hardwood, softwood, switch grass and corn stover.

ZeaChem’s analysis has shown the use of short rotation hybrid poplar trees for feedstock initially offers the lowest cost per bone dry ton (BDT)/acre/year. The feedstock inventory is stored on the stump until it is needed for conversion into biofuel or a chemical product, eliminating storage concerns. Short rotation hybrid poplar trees can be harvested as often as every three years, and require replanting only once every five harvests. Maintaining this high density energy crop approach minimizes the transportation costs associated with delivery to the plant.

ZeaChem will secure long-term, fixed price contracts for dedicated energy crops, such as poplar, and supplement with agricultural residues available from the surrounding area.

Product Cost (if applicable – per US pound): (If you do not manufacture or have long-term stable feedstock pricing, please use the latest December futures contract pricing for traded feedstocks, or $55/ton for untraded biomass – or provide notes on your own feedstock pricing assumptions).

ZeaChem anticipates paying ≤$65/BDT of biomass.

Offtake partners (if applicable)

ZeaChem will form strategic partnerships with fuel and chemical companies to bring ZeaChem products to market.

Co-products (if applicable) (e.g. feed, fuel)

ZeaChem is developing an entire portfolio of advanced biofuels and chemicals derived from cellulosic biomass, including several value-added chemicals. (See chart above) Lignin from the process will be used to provide steam and heat and ash produced will be returned to the poplar plantation as a soil supplement.

3 Top Milestones for 2009‐10

In 2010 (February through April), ZeaChem announced it successfully scaled up its fermentation process 10,000x from lab scale, the successful concentration of the fermentation broth to glacial acetic acid, and the conversion to commercial grade ethyl acetate. These results verified ZeaChem’s core technology and the processes will be integrated at the Boardman, OR demo facility. .
In early June 2010, ZeaChem broke ground on construction of their 250,000 gallon-per-year biorefinery in Boardman, Oregon. The facility is currently under construction and will begin to come online in 2011. Products from the facility include acetic acid, ethyl acetate and cellulosic ethanol.
In December 2009, ZeaChem was selected as one of 19 integrated biorefinery projects by the US DOE to receive a $25M grant to support the Boardman facility. The contract was finalized in May 2010 and ZeaChem is receiving funds from the DOE.

3 Major Milestone Goals for 2011‐13

Complete construction of 250,000 gpy plant in Boardman, Ore. and begin production of acetic acid, ethyl acetate and cellulosic ethanol.
Scale up C3 (propylene glycol, acrylic acid & esters, propylene, methacrylic acid & esters) product platform.
Construct commercial scale biorefineries upon successful operations at the integrated pilot facility in Boardman.

Business Model: (e.g. owner-operator, technology licensor, fee-based industry supplier, investor)

Owner-operator and technology licensor

Competitive Edge(s):

ZeaChem’s patented process offers the highest yield, lowest cost and lowest carbon footprint of any known biorefining method. Unlike conventional biorefining approaches that waste energy, ZeaChem efficiently extracts the most energy possible from renewable plant feedstock – significantly increasing output while reducing both production costs and environmental impacts. See our Carbon Analysis fact sheet for more information.

ZeaChem’s strategy is to control input costs so that it can remain the lowest cost producer. We choose feedstock that can be cultivated and delivered locally. We have patented a highly efficient and flexible process to convert that feedstock into not just one niche product but a portfolio of high-value chemicals and fuels. Our role is to develop and demonstrate the technology, partnering with large chemical and petroleum companies to offer them a reliable, low-cost, sustainable solution.

Distribution, Research, Marketing or Production Partnerships or Alliances:

Research & Construction Partners: