US-based biorefineries developer ZeaChem has commenced the production of commercial-grade cellulosic chemicals and ethanol at its facility in Boardman, Oregon.

The company claims that the output from the first global cellulosic bio-refinery demonstrates the viability of its bio-refining process.

Its facility located in Boardman, Oregon has a production capacity of 250,000 gallons per year (GPY).

ZeaChem president and chief executive officer Jim Imbler remarked: "The start of cellulosic production is a significant milestone for ZeaChem as we demonstrate our highly efficient biorefining technology, develop the first commercial biorefinery project, and expand global development opportunities."

Meanwhile, the company is developing its first commercial bio-refinery with the production capacity of nearly 25 million GPY of ethanol and chemicals from woody biomass and agricultural residues.

The new facility planned at the Port of Morrow in Boardman is funded by a conditional loan guarantee from the U.S. Department of Agriculture.

It has also collaborated with companies including GreenWood Resources, Valero and Chrysler.

"ZeaChem is developing the first truly-integrated biorefineries for the production of a broad portfolio of economical and sustainable biofuels and bio-based chemicals," added Imbler.