Web exclusive posted Jan. 12, 2009, at 3:04 p.m. CST

Lakewood, Colo.-based ZeaChem Inc. announced Jan. 8 it has raised $34 million in initial Series B financing, co-led by venture capital investors Globespan Capital Partners and PrairieGold Venture Partners. Additional “follow-on” investments were made by MDV-Mohr Davidow Ventures, Firelake Capital and Valero Energy Corp. – a major U.S. petroleum refiner.

ZeaChem, a biorefinery developer that converts biomass into fuels and chemicals, plans to begin construction in 2009 on its first cellulosic biorefinery which will be located in Oregon and will utilize a hybrid thermochemical/biochemical process.

“The initial Series B funding will allow us to produce the highest yield, lowest capital cost, lowest carbon footprint bio-based fuels and chemicals benefiting our investors, strategic partners, and our future customers,” said James Imbler, president and chief executive officer of ZeaChem. “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.”