N🟁N

Vega Announces Agreement to Build Biomass Production Facility in Brazil

  //business-finance.news-articles.net/content/200 .. build-biomass-production-facility-in-brazil.html
  Published in Business and Finance on Thursday, December 3rd 2009 at 10:56 GMT by Market Wire
          ^{🞛 This publication is a summary or evaluation of another publication}

LONDON--(Marketwire - December 3, 2009) - VEGA PROMOTIONAL SYSTEMS, INC. (PINKSHEETS: [ VGPR ]) announced today it has entered into a Joint Venture Agreement to build a biomass production facility in the South American country of Brazil. The name of the venture is Biomass of the Americas, LTD.

The Joint Venture Project will utilize special alternative energy technology called torrefaction. Torrefaction converts most forms of biomass waste into thermally treated biomass powder that is then turned into bio-coal briquettes for shipment to the end user.

There is a tremendous demand from European and American pulverized coal plants capable of burning bio-coal as a green fuel to meet carbon cap and trade regulations and renewable portfolio standards for power generation.

Bio-coal has a high energy density of over 10,000 BTU's per pound and is considered a renewable energy fuel that meets the Renewable Portfolio Standards and renewable energy credits in the United States. The retail price of the bio-coal in the United States is between $135 and $145 per metric ton. In Europe, the price is approximately $100 per metric ton higher than the price in the United States.

The cost to build the Brazil facility will be approximately $11 million (USD). When completed, the facility will generate approximately $7 million in annual revenue. The Company's plan is to begin construction during the first quarter of 2010.

Biomass of the Americas, LTD plans to expand into other South American countries once the Brazil plant is operational.

The Company will provide additional details concerning the site of the facility in Brazil as soon as lease negotiations are completed.

View this release in video format: [ http://www.vodnewswire.com/vodnewswire/news/vegapromosystems-20091203/ ]