Vega Biofuels Lands Large Bio-Coal Order
June 24 2014 - 12:23PM
Marketwired
Vega Biofuels Lands Large Bio-Coal Order
European Power Entity to Purchase 50,000 Tons of Torrefied
Bio-Coal Annually
NORCROSS, GA--(Marketwired - Jun 24, 2014) - VEGA BIOFUELS, INC.
(PINKSHEETS: VGPR) confirmed today that it has received an order to
ship its Bio-Coal product to European Power Companies.
The Company has entered into an Agreement with Austrian based,
ECEM Salzburg Energy and Environment Consulting GmbH to sell 50,000
tons of Bio-Coal each year for the next five years. The five
year deal will generate approximately $57 million in revenue to
Vega.
Vega recently announced it has entered into a Joint Venture to
build and operate a manufacturing plant in Allandale, SC to produce
Bio-Coal. When completed, the manufacturing plant will use
special torrefaction technology to produce the Company's
green-energy Bio-Coal product from timber waste that will then be
sold to power companies around the world. Bio-Coal has a high
energy density of up to 13,000 BTUs/Lb and is considered a
renewable energy fuel that meets the Renewable Portfolio Standards
and Renewable Energy Credits (RECs) in the United States.
"We've been working with ECEM for a long time and have sent
samples of our Bio-Coal to them for testing. We are pleased
that the samples were acceptable and that this deal is now coming
to fruition," stated Michael K. Molen, Chairman/CEO of Vega
Biofuels, Inc. "Our client has been very patient and supportive
during our developmental stage and we look forward to start
shipping product to the European trading hub of Amsterdam,
Rotterdam and Antwerp once the plant is completed. At a price
of $230/mt, this project will generate approximately $11 million in
revenue to Vega each year for the next five years."
The torrefied Bio-Coal will be manufactured at the Company's
facility in Allandale, SC then shipped in containers by rail to the
Port of Savannah. Once at the Port, the containers will go by
ship to Europe.
Torrefaction is a partial carbonization process that takes place
at temperatures between 475 - 575ยบ in a low temperature environment
which makes the physical and energetic properties of the biomass
much more comparable to traditional coal. The biomass is then
compressed into briquettes called Bio-Coal to be sold to the end
user. Torrefaction has the added benefit of reducing or
eliminating undesirable volatiles, such as nitrous oxides and
sulfur dioxides and is considered carbon neutral to the
environment. Existing coal-fired power plants do not need to
retrofit their existing plants to accommodate the torrefied
Bio-Coal.
By accounting for the positive environmental impact of not
allowing biomass to decay and providing a positive impact through
renewable energy under an approved methodology from the Clean
Development Mechanism (CDM) under the United Nations Framework
Convention on Climate Change (UNFCCC), the production and sale of
carbon credits from the burning of biomass for CO2 production will
guarantee additional income to Vega.
Certain statements in this release constitute
forward-looking statements or statements which may be deemed or
construed to be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The words
"forecast," "project," "intend," "expect" "should," "would," and
similar expressions and all statements, which are not historical
facts, are intended to identify forward-looking statements. These
forward-looking statements involve and are subject to known and
unknown risks, uncertainties and other factors which could cause
the Company's actual results, performance (finance or operating) or
achievements to differ from future results, performance (financing
and operating) or achievements expressed or implied by such
forward-looking statements.
CONTACT: Vega Biofuels, Inc. 800-481-0186 Email Contact
www.vegabiofuels.com