SOURCE: Vega Promotional Systems, Inc.

March 25, 2010 08:30 ET

Vega's Georgia Manufacturing Plant to Produce Bio-Coal for European Power Companies

LONDON--(Marketwire - March 25, 2010) -  Vega Promotional Systems, Inc. (PINKSHEETS: VGPR) confirmed today that its Georgia manufacturing plant will produce bio-coal.

When completed, the manufacturing plant will use special 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% 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 approximately $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. Shipping is a large part of our business and significantly affects the price we can charge. 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 - 575º 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 (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 Information

  • CONTACT:
    Vega Promotional Systems, Inc.
    800-481-0186