ZeaChem said that the plant will initially use its fermentation technology to produce ethyl acetate, a salable chemical intermediate and precursor to cellulosic ethanol.

Using an American Recovery and Reinvestment Act grant from the US Department of Energy (DOE), the company will add the cellulosic ethanol production capability to come online in 2011.

According to the Oregon Employment Department, the construction and operation of ZeaChem’s Boardman biorefinery will create 292 direct and indirect jobs in Oregon, 167 of which will be located in Morrow County, where Boardman is located.

Jim Imbler, president and CEO of ZeaChem, said: “Breaking ground on ZeaChem’s biorefinery in Boardman is a significant milestone.

“ZeaChem is committed to producing economical and sustainable advanced biofuels and bio-based chemicals, creating jobs, and being a good neighbor in the community.”