Vega Biofuels, Inc. Increases Production Capacity with Completion of Generation Four Torrefaction Machine

Vega Biofuels, Inc. announced today that construction of the Company's fourth generation torrefaction machine has been completed and includes a pre-dryer to speed production time. Torrefaction is a special process technology that converts timber into a renewable energy alternative to traditional coal for utility owned pulverized coal-fired power plants around the world. Torrefaction is a partial carbonization process at temperatures between 475 - 575ºF (200 - 400° C) in a low oxygen environment. The physical and energetic properties of the biomass are then much more comparable to conventional coal. Vega's torrefied fuel product is called Bio-Coal.

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 (RECs) in the United States. Existing coal-fired power plants can utilize the Bio-Coal without making significant changes to their current infrastructure. The torrefaction machines are manufactured by the Company and its Joint Venture partner in eastern Kentucky. The new machine is the Company's fourth generation model and includes a pre-dryer that partially dries the biomass prior to the torrefaction process. This step increases the capacity of the machine by approximately 25% by allowing the biomass to pass through the roasting chamber at a faster speed. The production capacity of the new model is between 8 and 10 tons per hour. In addition to manufacturing Bio-coal, the Company produces an agricultural product called Biochar. Biochar is used as a soil enhancement for the agricultural industry to increase the amount of yield from each plant.

As a result of President Barrack Obama's plan to cut carbon pollution in the United States by reducing carbon dioxide emissions created by coal-fired power plants, Vega adjusted its Business Plan to focus more attention on the domestic market for its products. The Company's Bio-Coal product is a green energy solution for the President's plan. "Adding the pre-dryer not only increases our production capacity, it and allows us to produce a much more consistent product for our clients. We feel like this machine is the most robust and durable machine to date. Our plan is to have two additional machines completed in the next few months using this same design," stated Michael K. Molen, Chairman/CEO of Vega Biofuels