Vencor International enters agreement to produce bio-coal

Venco International Inc. recently announced it has entered into an agreement to produce bio-coal, a form of torrefied wood pellets. The agreement follows the company's recent announcement that testing performed on its torrefied wood pellets exceeded the strict requirements of its international client.

The five-year agreement with Georgia-based Vega Biofuels Inc. calls for Vencor to provide bio-coal to Vega for shipment to Vega's European clients. The initial order will be for 3,000 tons of bio-coal and will be produced and ready to ship during the first part of 2015.

Bio-coal is a product developed by Vega Biofuels and is very similar to Vencor's torrefied wood pellet product. 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 in the United States. Bio-Coal is a renewable energy source that can replace traditional coal.

Vencor recently provided samples of its torrefied wood pellets to be tested by Vega Biofuels. Multiple tests were performed, including ash, sulfur and volatile content analysis as well as fixed carbon and BTU content. Each one of the tests performed exceeded the requirements necessary for approval by Vega.

James Gaspard, CEO of Vencor International, stated, "We are pleased that our product exceeded the necessary requirements and look forward to providing Vega with bio-coal for the next five years. As we moved the company into its new direction, this is the type of agreement that we were targeting. Vega has orders in hand and is currently marketing its product all over the world. We have the ability to provide the product and they have the ability to sell the product. It's a win-win for both companies and will provide a revenue stream necessary to grow our business."