BOARDMAN, OR --- ZeaChem Inc. plans to begin construction on its cellulosic ethanol demonstration plant in Oregon before the year's end, the East Oregonian reported. 

First, the company will focus on modular design and the fabrication of process components. This work will be performed in fabrication shops off-site. Eventually, these components will be shipped to the future plant site in Port of Morrow, Ore., for assembly, company spokesperson Carrie Atiyeh told the East Oregonian

Groundbreaking at the actual plant site is expected sometime next year. 

ZeaChem has established a relationship with GreenWood Resources, which will supply forestry crops as a source of feedstock. 

Headquartered in Lakewood, Colo., ZeaChem has leased five acres from the Port of Morrow and has an option on 35 more acres for the operation of the cellulosic ethanol demonstration plant.