The production of tobacco seedlings on permanent seedbed systems in composted pine-bark medium was developed over the past 6 years and are currently implemented by a vast number of commercial growers. The concept consists of a permanent constructed seedbed 1,5 m wide, 30 m long and 50 mm deep, filled with a layer of 5 cm composted pine bark in which seedlings are produced. The benefits of seedling production on permanent seedbeds proved that stronger, more uniform seedlings can be produced than in conventional beds. Only 65 m² of seedbeds are needed per ha versus 90 m² on conventional beds. No methyl bromide fumigation is needed and high levels of hygiene can be maintained. This system proved to be a cost effective superior method to produce tobacco seedlings.Ongoing part of this research is the implementation of steam as sterilization source as opposed to methyl bromide and the practical implementation of such a system. The best system proves to be a low-pressure mobile electrode boiler. The main advantages of using an electric steam conditioner are low capital cost, low running cost, it is mobile and multiple farm use. Results have shown that at 90°C for 30 minutes it sterilized medium of fungi, insects and most weed seeds were killed. From treatment to sowing time is 1-2 hours versus 14 days with methyl bromide. Both Phytophthora sp and Fusarium oxysporum were controlled effectively with steam. Steam sterilization of bark medium is effective and cheap, safe to use under most conditions, it saves time and most important it is very environmental friendly.