Sprague Resources, the publicly traded, Portsmouth-based wholesale energy supplier, is teaming up with a Maine-based company that is planning to build a biorefinery that would produce a patented zero-emission biofuel made from 100% ethyl levulinate, an organic chemical compound often referred to as EL.

A site has yet to be picked for the plant, but the company, Biofine Developments Northeast, says it wants to open it in 2023. It would process 100 tons a day of cellulose-based waste, primarily from paper and lumber mills, to make 3 million gallons of heating oil a year. It also would produce a side stream of renewable chemical byproducts that can be sold.

Biofine is working with Treadwell Franklin Infrastructure Capital to help it bring the project to commercial scale and raise $70 million from private investors.

The fuel that would be produced, EL100, gives off zero greenhouse gas emissions, according to Biofine. The company said it also has worked with industry labs to make sure EL100 can be burned safely in existing equipment, and conducted a trial earlier this year in buildings at the University of Maine at Presque Isle.

Sprague Resources is one of the largest distributors of various blends of a product called Bioheat, which is vegetablebased oil converted into petroleum fuel.

“This is another great example of our continued commitment to energy innovation,” said David Glendon, president and CEO of Sprague. “As customers increasingly seek to use more renewable liquid fuels, we are excited to expand our portfolio of offerings using our existing infrastructure.” He said the company sees the potential to blend EL100 with petroleum to lower emissions, and use it as a standalone product for heating and transportation.

Biofine said it expects to be able to produce EL100 at prices that can compete with conventional fuel.