VEGA BIOFUELS, INC. (PINKSHEETS: VGPR) announced today that the Company is exploring options to increase production capacity of its Bio-Coal product to meet current demand.
Vega recently announced it has entered into a Joint Venture to build and operate a manufacturing plant in Allandale, SC to produce a product called 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.
The current production capacity for the Company's Joint Venture in Allendale is not sufficient to meet the current demand for Vega's Bio-Coal. Therefore, representatives of Vega are currently in discussions with Colorado based Vencor International, Inc. (PINKSHEETS: VCOR) concerning Vencor's ability to provide Vega a torrefied product that meets the specifications of the Company's Bio-Coal product. Vencor is currently testing its product pursuant to strict specification requirements provided by Vega.
"It's no secret, our current production capacity is not enough to meet the demand for our Bio-Coal product," stated Michael K. Molen, Chairman/CEO of Vega Biofuels, Inc. "In time I believe the production capacity at the Allendale plant will be increased and catch up to the demand, but we have orders now that have to be produced, so we are exploring other options to meet this demand. I have gotten to know new Vencor CEO, James Gaspard through our biochar business and he believes that they can provide us with a torrefied product that will meet the strict specifications for Bio-Coal. We have asked Vencor to provide us with certain test results of their product and we expect those results before the end of the month. If the product meets our specifications, we will place an order with Vencor that would give us the ability to start shipping product by the first of the year. Our goal is to supplement Allendale's production capacity, not replace it."
Torrefaction is a partial carbonization process that takes place at temperatures between 475 - 575º in a low oxygen 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.
Source: Vega Biofuels
Date: Nov 24, 2014