Tuesday, March 4th, 2014

Houston, TX--(Marketwired) Zilkha Biomass Energy LLC and Valmet have signed a five-year collaboration agreement in the field of steam exploded black pellets. The purpose of the agreement is to bring steam exploded black pellets to the market. These pellets are principally used for replacing fossil coal as the energy source in heat and power generation. The parties will work together to develop a joint global offering.

"Valmet is a highly regarded technology provider in the pulp, paper and energy industry. Their network will provide a great channel for introducing manufacturers to the advantages of the Zilkha Black® Pellet," says Jack Holmes, CEO of Zilkha Biomass Energy.

"Through this five-year collaboration, we are partnering with a well-established technology and equipment supplier to offer advanced solutions for the growing biomass market. We are very excited about this arrangement," Holmes continues.

"The market for steam exploded black pellets is expected to grow rapidly in coming years as the pressure to replace fossil fuels with sustainable environmentally friendly alternatives is getting stronger. Combining Zilkha's deep know-how in pellet production and distribution with Valmet's project capabilities brings great opportunities to develop and exploit a new emerging technology," says Rickard Andersson, Vice President, Bio Technology and Environmental Systems, Pulp and Energy Business Line, Valmet.

Steam exploded black pellets provide a number of benefits compared to traditional wood pellets. These include improved durability, water-resistance, higher energy content, lower shipping costs, and reduced dust problems compared to other types of bio-based pellets. Due to their properties, these black pellets can be handled in similar manner to fossil coal. This significantly reduces, or even removes, the need for expensive investments in logistics and plant rebuilds.

Zilkha Biomass Energy LLC provides biomass solutions to electric utility customers, including conversions of fossil fuel stations, and the supply of a baseload, renewable fuel in the form of the Zilkha Black® Pellet. The Zilkha Black® Pellet is the first advanced pellet in the industry that is commercially available. The product of years of R&D, our versatile Black pellet is the ideal choice for converted coal units as well as co-firing markets in Europe and Asia.

Our second plant in Selma, Alabama will open in early 2015, expanding production of our black pellet by 275,000 metric tons per year. Zilkha Biomass Energy is located in Houston, Texas.

Read more at http://www.zilkhabiomass.com

Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward -- every day.

Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.

The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.

Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.

Read more www.valmet.com , www.twitter.com/valmetglobal

For further information, please contact:
Mattias Erixon
Senior Sales Manager, Bio Technology and Environmental Systems, Pulp and Energy Business Line


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