The company has signed an agreement with Austria- based ECEM Salzburg Energy and Environment Consulting to sell 50,000 tons of Bio-Coal a year.

The five year agreement is expected to generate about $57m in revenue to Vega, which has recently entered into a joint venture to construct and operate a manufacturing plant in Allandale, SC to produce bio-coal.

Upon completion, the manufacturing plant will use special torrefaction technology to manufacture the company’s green-energy Bio-Coal product from timber waste.

The company, which will then sell the waste to global power firms, said Bio-Coal has a high energy density of about 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.

Vega Biofuels chairman and CEO Michael Molen said the company has been working with ECEM for a long time and sent samples of its Bio-Coal for testing.

"Our client has been very patient and supportive during our developmental stage and we look forward to start shipping product to the European trading hub of Amsterdam, Rotterdam and Antwerp once the plant is completed," Molen added.

"At a price of $230/mt, this project will generate approximately $11 million in revenue to Vega each year for the next five years."