ZeaChem Begins Core Facility Operations at Demonstration Plant in Boardman, Oregon

ZeaChem Inc. today announced it has completed construction of the core facility for its new integrated demonstration biorefinery in Boardman, Oregon. Construction of this core project was completed on schedule, with no lost time or reportable accidents, and significantly under budget. The core facility created 50 construction jobs and will employ 25 full-time operations staff in the region.

The core will produce the intermediate chemicals acetic acid and ethyl acetate, which are high-value products for applications including paints, lacquers and solvents. ZeaChem will sell bio-based chemicals to commercial and industrial customers seeking renewable and cost-competitive alternatives to petroleum-sourced chemicals.

“Beginning operations at the core facility is another indication that ZeaChem continues to successfully execute its strategic roadmap,” said Jim Imbler, president and chief executive officer of ZeaChem. “Our phased development approach minimizes risk by allowing us to produce marketable products as we scale up our biorefining operations. We will continue to build out our biorefinery platform to produce a broad portfolio of sustainable and economical chemicals and fuels derived from cellulosic biomass.”

ZeaChem is further developing its integrated biorefinery through implementation of a second project to add the capability of using cellulosic biomass on the front end and converting ethyl acetate into ethanol on the back end. This separate “bookends” project is currently underway and supported by a $25 million grant from the U.S. Department of Energy (DOE). Once operational in 2012, it will result in the production of up to 250,000 gallons per year (GPY) of cellulosic ethanol.

The company is now developing commercial biorefineries for the production of advanced biofuels and bio-based chemicals.

Headwaters Incorporated Announces Sale of Its 51% Ownership in Blue Flint Ethanol LLC

Headwaters Incorporated today announced that Great River Energy has acquired full ownership of Blue Flint Ethanol LLC, an ethanol biorefinery located in Underwood, ND, from Headwaters Ethanol Holdings LLC, a subsidiary of Headwaters Incorporated. Prior to this acquisition, Great River Energy owned 49 percent of Blue Flint Ethanol LLC and Headwaters Ethanol Holdings owned 51 percent.

Great River Energy is one of the nation’s largest generation and transmission cooperatives. It was the first utility in the U.S. to locate an agricultural processing facility next to a coal-fired power station. The Blue Flint biorefinery purchases process steam from Great River Energy’s Coal Creek Station facility. In doing so, Blue Flint Ethanol, the joint venture between Great River Energy and Headwaters, was able to avoid the cost of building and operating a separate boiler unit. This helped make Blue Flint Ethanol one of the most cost effective, energy efficient, and environmentally friendly ethanol plants in the country.

"We were pleased to have worked with Great River Energy over the past five years in building and operating an exemplary biorefinery. They have been an excellent partner for us," said Donald P. Newman, Headwaters' Chief Financial Officer. "Under the terms of the agreement, effective January 1, 2012, Headwaters received approximately $18.5 million in cash proceeds. Headwaters intends to use the net proceeds from the sale to reinvest in assets of its business and to strengthen its balance sheet."

Blue Flint Ethanol LLC will continue to operate as a wholly-owned independent subsidiary of Great River Energy.