ZeaChem signs feedstock agreement

By Susanne Retka Schill | February 05, 2008
Web exclusive posted Feb. 28, 2008, at 9:00 p.m. CST

GreenWood Resources Inc. signed a letter of intent Feb. 11 to supply ZeaChem Inc. with poplar trees as a feedstock for a 1.5 MMgy cellulosic ethanol plant being developed near Boardman, Ore.

The facility will be financed, constructed and operated by ZeaChem, a Menlo Park, Calif.,-based company. It will be located near a poplar tree farm managed by GreenWood Tree Farm Fund LP in the Columbia River Basin. ZeaChem and GreenWood Resources also agreed to explore increasing the scope of their relationship in the future, such as expanding the first biorefinery's capacity and developing other biorefineries with tree farms.

"We are pleased to have the opportunity to utilize a portion of the existing residual fiber from the GreenWood Tree Farms and bring our expertise in silviculture, germplasm, irrigation technology and global organizational together with ZeaChem's novel approach to producing cellulosic-based chemicals and ethanol," said GreenWood President and Chief Executive Officer Jeff Nuss,

James Imbler, president and CEO of ZeaChem, said the agreement would help both companies. "It allows GreenWood to benefit from the development of the growing market demand for cellulosic-based chemicals and ethanol while providing ZeaChem with a dedicated long-term cellulosic feedstock source from the leader in intensively managed hybrid poplar trees," he said.

GreenWood Resources organized the $175 million GreenWood Tree Farm Fund to consolidate existing high-yield, fast-growing tree farm assets in the Pacific Northwest. The fund owns 35,000 acres of certified sustainable tree farms in the Columbia Basin in Oregon and Washington.