London, March 25, 2010 — Vega Promotional Systems said its Georgia manufacturing plant will produce bio-coal.
When completed, the manufacturing plant will use torrefaction technology to produce bio-coal briquettes from organic waste products that will then be sold through agreements with European power generating companies.
The company recently announced it has entered into an agreement with Austrian-based ECEM Salzburg Energy and Environment Consulting GmbH to sell 100 percent of the bio-coal produced at the company’s Georgia facility. ECEM will resell the product to power companies throughout Europe. The five-year deal will generate about $17 million in annual revenue to Vega.
“Our original plan for the Georgia plant was to produce fuel pellets using existing technology,” stated Vega Chairman, Michael K. Molen. “However, after extensive research with equipment manufacturers, industry experts, and potential clients around the world, we’ve determined that it would be more beneficial to use the torrefaction technology to produce bio-coal. Bio-coal will be much cheaper to ship to our clients than fuel pellets. Target markets for our products are power plants that face mandates to increase biomass usage in their coal burning plants. Firing the company’s bio-coal in existing coal plants will not require any retrofitting of existing power plants.”
Torrefaction is a partial carbonization process that takes place at temperatures between 475 – 575 degrees 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 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.
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 under the United Nations Framework Convention on Climate Change, the production and sale of carbon credits from the burning of biomass for cardon dioxide production will guarantee additional income to Vega.