Dagenham Plant - Completion and Handover

RNS Number : 6392B

TEG Group (The) PLC

06 March 2014

 

 

4 March 2014

The TEG GROUP PLC

("TEG" or "the Company")

TEG's Completion and Client Handover of its Plant in Dagenham

London's First Anaerobic Digestion & Composting Facility

The TEG Group PLC (AIM: TEG), the AIM-listed green technology company, which develops and operates organic composting and energy plants, is pleased to announce that following successful commissioning and testing, it has now handed over to its client, TEG Biogas (London) Limited ("TEG Biogas"), the combined In-Vessel-Composting ("IVC") and Anaerobic Digestion ("AD") plant at East London's .Dagenham Dock (the "Dagenham Plant"), both on schedule and in budget. 

The Company commenced the £16m Engineering, Procurement and Construction Contract ("EPC Contract") in September 2012, part of the development of the £20m facility. With the handover of the plant completed, the Company will receive retentions on 7^th March 2014.  The Company is now providing on-going operating and maintenance services to TEG Biogas under its 15 year contract, with annual revenues of approximately £1.3m per annum, escalated annually.

The Company is a 24.5 per cent shareholder in TEG Biogas, which is a joint venture with funding partners led by Foresight Group. Foresight brought together funders including the Foresight Environmental Fund the Foresight UK Waste Resources and Energy Investments (UKWREI) Fund, Quercus Assets Selection, The London Waste and Recycling Board (LWARB) and Investec Bank plc.

The Dagenham Plant processes 50,000 tonnes per annum of food and green waste via both AD and IVC technologies.  It is the first AD plant in central London and will generate approximately 1.4MW of electricity, sufficient to power approximately 2,000 homes.  It will also produce over 36,000 tonnes p.a. in AD digestate and 14,000 tonnes p.a. of compost for agricultural use.   The feedstock is source segregated food waste and mixed food and green waste produced by local households, commercial and manufacturing enterprises.

Mick Fishwick, CEO of TEG commented:

"I am delighted to see the Dagenham plant completed on time and on budget and that it has now been passed across to its owners. This project once again demonstrates TEG's ability to take a plant from the drawing board to full commercial production and we look forward to operating and maintaining the plant for the coming 15 years, while we continue to develop and build further UK based IVC and AD plants".

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Contact:
The TEG Group Plc	Tel: [phone]
Michael Fishwick, Chief Executive	www.theteggroup.plc.uk
Peckwater PR	Tel: [phone]
Tarquin Edwards	[e-mail]
N+1 Singer Advisory LLP (Nomad & Broker)	Tel: [phone]
Andrew Craig/Ben Wright

Notes to Editors

TEG

TEG provides state of the art technology for handling organic wastes.  Its in-vessel composting ("IVC") system is one of the few approved technologies capable of treating animal by-product ("ABP") waste and it is now providing an anaerobic digestion ("AD") technology to produce power from food waste.  Plant economics are predominantly driven by the gate fees charged, rather than the value of the end product (compost).  

The AD plants also benefit from power sales and Renewable Obligations Certificates ("ROCS") or Feed-in Tariffs ("FITs"). The TEG processes are an economic and sustainable alternative to landfill.

The TEG Silo Cage System

The Silo Cage system, one of the few technologies capable of treating organic waste, is a natural process producing compost as an end product.  The compost is an excellent soil conditioner that fertilises, retains moisture, provides structure and reduces the incidence of plant disease.  TEG's Silo-Cages are housed in self-contained buildings, suitable for urban environments, are not unsightly and are environmentally friendly.

TEG Biogas (Perth) Limited

TEG Biogas (Perth) Limited ("TEG Biogas Perth") is a joint venture company established by TEG with Albion LLP.  TEG Biogas Perth has constructed a 15,000 tonnes per annum AD plant at TEG's Glenfarg site to produce nominally 0.7MW of electrical power and 0.2MW of heat that is to be used by Binn Eco Park.  The facility has been in operation, generating revenues from waste sales and power generation since Quarter 1 of 2012.  It has become one of the leading AD operations in Scotland.

TEG Biogas (London) Limited (TEGBL)

TEG Biogas (London) Limited ("TEG Biogas London") is a joint venture company established by TEG with funding partners led by Foresight Environmental Fund LP.   TEG Biogas London has constructed a combined In Vessel Composting (IVC) and AD plant in Dagenham that will process approximately 50,000 tonnes per annum of organic wastes and will generate approximately 1.4MW of power, sufficient to power approximately 2000 homes.   The plant went into full operation in Q1 2014. 

TEG received a contract to construct the facility, valued at approximately £16m, in September 2012.  The Company is currently operating the facility, post handover, as part of a 15-year operating and maintenance contract.  The Group has a minority shareholding in TEGBL.

General

Customers include local authorities, waste management companies, food processing companies, farmers and landowners.  The Company's expanding market is driven by increasingly stringent EU and UK legislation regulating the treatment and disposal of organic waste.  Statutory targets for the diversion of waste from landfill increase annually through to 2020, increasing TEG's market opportunity year on year.

Foresight Environmental Fund LP

Foresight Environmental Fund LP (FEF), supported by the London Green Fund, which was launched by Mayor of London, Boris Johnson, in early 2011 and in part funded by the European Regional Development Board (ERDF) and the London Waste and Recycling Board (LWARB), is a key part of London's drive towards becoming a world leading low carbon city. FEF is a £60 million fund managed by Foresight Group, which directly supports this vision by financing waste management and recycling facilities which promote sustainable and carbon neutral economic growth. UK Waste Resources and Energy Investments (UKWREI) Fund

UKWREI is a £68 million fund, managed by Foresight Group, targeting environmental infrastructure projects across the UK, cornerstoned by the UK's Green Investment Bank.  The investment in TEG Biogas (London) was the fund's first investment.

London Waste and Recycling Board

The London Waste and Recycling Board (LWARB), chaired by Richard Tracey, Assembly Member, working in conjunction with the Mayor of London and London Councils, has a remit to improve waste management in the capital. For more information on LWARB visit www.lwarb.gov.uk

 

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