ZeaChem Completes Construction of Cellulosic Ethanol Biorefinery

  ZeaChem Completes Construction of Cellulosic Ethanol Biorefinery

  $25 million Series C closes with new investors ITOCHU Corp. and Macquarie

Business Wire

LAKEWOOD, Colo. -- October 29, 2012

ZeaChem Inc., developer of highly-efficient biorefineries, today announced
that it has completed construction of its 250,000 gallons per year (GPY)
cellulosic ethanol biorefinery in Boardman, Oregon. The project was completed
on budget and is expected to begin production of cellulosic ethanol by the end
of 2012.

ZeaChem's 250,000 gallon per year integrated cellulosic biorefinery for the
production of bio-based ...

ZeaChem's 250,000 gallon per year integrated cellulosic biorefinery for the
production of bio-based chemicals and cellulosic ethanol in Boardman, Oregon.
(Photo: Business Wire)

ZeaChem’s core process, completed earlier this year, enables the production of
acetic acid and ethyl acetate which are intermediate chemicals for
applications including paints, lacquers and consumer goods representing a $10
billion market worldwide. The core process has been commissioned and
fermentation of sugar feedstocks has been replicated in 40,000 gallon tanks.
These results met and exceeded the company’s design targets.

The next step in ZeaChem’s phased development and start-up approach is to
begin operations of the integrated facility for cellulosic ethanol production.
With the support of a $25 million investment from the U.S. Department of
Energy’s Integrated Biorefinery program, ZeaChem has added process components
to the core facility enabling the utilization of locally-sourced biomass,
including wood and wheat straw, to be fermented and converted into
intermediate chemicals and ethanol.

“With construction completed, ZeaChem looks forward to starting integrated
operations and the production of cellulosic ethanol this year,” said Jim
Imbler, president and chief executive officer of ZeaChem. “We are executing a
phased start-up approach to limit risk, stabilize and optimize operations, and
ensure safety. ZeaChem is focused on successfully demonstrating integrated
operations and commercializing its highly efficient, economical and
sustainable biorefining process.”

ZeaChem also announced it has closed its Series C financing totaling $25
million in new equity to advance its business strategy and commercial
deployment. New investors include Tokyo, Japan-based ITOCHU Corporation, a
multi-national trading company, and Macquarie, a global investment banking and
financial services group based in Sydney, Australia. Additional Series C
investors include: Birchmere Ventures, Firelake Capital, Globespan Capital
Partners, Mohr Davidow Ventures, PrairieGold Venture Partners, and Spring
Ventures. ZeaChem will utilize Series C funds to support operations at the
integrated biorefinery and develop its first commercial biorefinery.

“We are pleased to expand our investor support to new partners in Asia and
Australia, which demonstrates ZeaChem’s global potential for biofuels and
bio-based chemicals,” added Imbler. “ITOCHU and Macquarie have established
track records in co-developing energy projects worldwide and the ZeaChem
platform is uniquely qualified for this due to our feedstock flexibility and
diverse product portfolios. These new international partners provide us with a
foundation to expand the company’s operations globally.”

About ZeaChem Inc.

ZeaChem Inc. has developed a cellulose-based biorefinery platform capable of
producing advanced fuels and intermediate chemicals. ZeaChem's indirect
approach leapfrogs the yield and carbon dioxide (CO[2]) problems associated
with traditional and cellulosic based biorefinery processes. In addition,
ZeaChem has a significant capital cost advantage compared to other cellulosic
technologies. By efficiently extracting the most energy possible from biomass
feedstocks, ZeaChem significantly increases output while reducing both
production costs and environmental impacts. Incorporated in 2002, ZeaChem is
headquartered in Lakewood, Colo., USA and operates a research and development
laboratory facility in Menlo Park, Calif., and a demonstration biorefinery in
Boardman, Ore.

Please visit www.zeachem.com for more information.

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Contact:

Press Contact for ZeaChem:
Ogilvy
Bryan Harland, 415-677-2814
bryan.harland@ogilvy.com
 
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