Reported by Ann Racalli

Two bio-refining companies with Colorado connections will receive millions of dollars from the federal stimulus program, according to an announcement by the U.S. Department of Energy.

Lakewood-based ZeaChem Inc. is receiving $25 million for an Oregon biofuels project.  The company is utilizing “hybrid poplar trees from a Boardman, Oregon farm to produce fuel-grade ethanol using hybrid technology. Additional feedstocks such as agricultural residues and energy crops will also be evaluated in the pilot plant,” the DOE said.

The other project involves Los Angeles-based Rentech, a biorefinery company which operates an energy technology center in Commerce City. Rentech is partnering with ClearFuels Technology, Inc. of Hawaii to produce renewable diesel and jet fuel from woody biomass by integrating ClearFuels’ and Rentech’s conversion technologies, according to the DOE.

“The facility will also evaluate the conversion of bagasse and biomass mixtures to fuels.” Bagasse is fiber left over after sugary juice is extracted from sugar cane. Rentech owns a share of privately held ClearFuels.

Commenting on the DOE funding for his company, ZeaChem CEO Jim Imbler said “Department of Energy support is a validation of ZeaChem’s highly efficient, low carbon and economical biorefinery technology. This award accelerates deployment of ZeaChem’s integrated biorefinery and our progress to commercial production of advanced biofuels and bio-based chemicals.”

ZeaChem says its Oregon biorefinery will have capacity of 250,000 gallons per year. You can read more about ZeaChem and additional comments from CEO Imbler in this article/interview recently appearing in Colorado Energy News.

The projects by ZeaChem and ClearFuels Technology Inc. are among 19 in 15 states that are receiving $564 million in the stimulus funding round. In the statement, the DOE said that the biorefinery funding program under the federal (ARRA stimulus) is intended to “create jobs and new markets for rural America.”