Vega Biofuels forms JV to produce bioenergy from industrial hemp
Vega Biofuels has entered into a joint venture agreement to manufacture green energy products from industrial hemp.
The joint venture (JV) company includes Vega Biofuels and Oregon, US-based Now Corp., and it will operate under the name Vega Now from the Now Corp.'s property in Colorado.
The two companies will be working together to test industrial hemp as a feedstock to produce various green energy products using torrefaction technology owned by Vega.
The Now Corp.'s recent acquisition of Field Of Greens, which owns 650 acres of land in Colorado, prepares it for the growing of hemp and development and commercialisation of new technologies, products, services, and systems for the alternative energy sector.
Vega will provide one torrefaction machine to the JV, which will be delivered to Colorado.
In addition to marketing the torrefied products to Vega's clients, a portion of the products will be utilized by the JV at the Colorado site to enhance the growing of industrial hemp.
The JV will produce and market biocoal and biochar as its two primary products.
Biocoal 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 US.
It can act as a drop-in replacement for traditional coal in existing coal-fired power plants around the world.
Biochar is used as a soil enhancement for the agricultural industry to increase the amount of yield from each plant.
In order to help finance the JV, Vega Biofuels is conducting a private placement of its common shares.