Zilkha signs agreement to produce black pellets

Zilkha Biomass Energy, a renewable energy company providing the first commercially available water-resistant wood pellet, has agreed to license its Zilkha Black Pellet technology to Cate Street Capital, a developer of green technology companies.

Thermogen Industries, the pellet manufacturing subsidiary of Cate Street Capital, will use Zilkha's patented proprietary process to produce black pellets at its site in Maine, US.

Thermogen Industries will produce more than 300,000 tonnes a year of water-resistant black pellets, increasing the supply of this biomass product to the renewable energy market. Black pellets handle like coal and offer an alternative for coal-firing plants which are under increasing pressure to replace their fossil fuels with cleaner, sustainable sources.

'Partnering with Zilkha will allow Thermogen to begin producing more pellets more quickly, tripling annual production. Our customers are saying we must have more capacity from the start, and Zilkha Biomass Energy's technology will help Thermogen meet that need,' says John Hallé, president and CEO of Cate Street Capital.

Biomass pellet export volumes from North America to Europe have steadily increased over the past several quarters and the market for this renewable product is expected to grow rapidly. Black pellets offer an alternative to conventional pellets due to their water-resistance, durability, reduced dust problems, higher energy content and lower shipping cost.