Biorefinery developer ZeaChem has announced (7th January) that it has raised $34 million in initial Series B financing that will be used to build its first cellulosic biorefinery. The funding round was co-led by venture capital investors Globespan Capital Partners and PrairieGold Venture Partners with follow-on investment by MDV-Mohr Davidow Ventures, Firelake Capital and Valero Energy Corporation, the largest petroleum refiner in the United States. Construction of the new plant is scheduled to start later this year.

"ZeaChem has made tremendous progress over the past year towards commercializing its hybrid cellulosic ethanol technology," said James Imbler, president and chief executive officer, ZeaChem Inc. "The initial Series B funding will allow us to produce the highest yield, lowest capital cost, lowest carbon footprint bio-based fuels and chemicals benefitting our investors, strategic partners, and our future customers. Securing such funding in a challenging economy – from industry leaders in both energy and venture capital – is testament to the value of ZeaChem's third generation cellulosic ethanol platform."

"Colorado is well-positioned to support innovation in the renewable fuels industry," said Don Elliman, executive director of the Colorado Office of Economic Development and International Trade. "As the country faces tough economic times, ZeaChem's announcement that it has raised financing is good news, and we look forward to supporting their continued success in Colorado's ‘New Energy Economy'."