Re Contract

RNS Number : 8486X

TEG Group (The) PLC

13 December 2010

 



 

For release

Immediate

Date: 13 December 2010

The TEG GROUP PLC (TEG/L)

("TEG" or "the Company")

London Waste and Recycling Board provides £1.9m funding for

TEG's Dagenham Facility and London's first Anaerobic Digestion plant

Following approval at its 6 December Board meeting, the London Waste and Recycling Board (LWARB) has announced that it will provide £1.9 million towards The TEG Group Plc's proposed plant at Dagenham, which will be London's first Anaerobic Digestion ("AD") plant.

TEG, the AIM-listed cutting edge green technology company, which develops and operates organic composting and energy plants, intends to develop a 30,000 tonnes per annum AD plant together with a 20,000 tonnes per annum TEG Silo Cage In-Vessel Composting ("IVC") plant.  This technology mix means that the plant will divert up to 50,000 tonnes per annum of food and garden waste from landfill each year.  The cost of the plant and equipment is expected to be £10m with an additional £5m for freehold and infrastructure development.

The facility is to be located in the London Sustainable Industries Park (LSIP) in Dagenham, a site promoted by the London Thames Gateway Development Corporation (LTGDC) for the development of AD infrastructure. TEG participated in a competitive bidding process and was selected by LTGDC as preferred developer and operator of the proposed plant.  

The facility will turn food and garden waste from London households, businesses and industrial catering companies into organic fertiliser to be used on farms and agricultural land.  The plant will also be capable of generating in excess of 1 MW of renewable energy for export to the National Grid and TEG is also exploring the potential to export additional heat produced by the process into local heat networks.

It is expected that the plant will displace over 185,000 tonnes of CO2 over the 20 year life of the project, will generate enough energy to satisfy the needs of approximately 2,000 homes in the Greater London area per annum.  The plant is expected to be up and running in 2012.

Along with the funding to install the AD technology, which will be provided by LWARB, Albion Ventures LLP, the London-based venture capital investor, intends to provide the remaining funding, subject to TEG achieving the appropriate permissions and licences.  Albion is TEG's partner in the TEG Biogas (Perth) Limited AD plant that was announced on 26 July 2010.  Construction of that plant commenced in September 2010 and it expected to be completed in Q1 2011 with commissioning taking place in Q2 2011.

TEG will now apply for planning permission and Environmental Permits, which it anticipates will be secured by Q2 of 2011.

Commenting for TEG, Chief Executive Michael Fishwick said "TEG is delighted that its proposed London development was selected for funding by the London Waste and Recycling Board and their support is very much welcomed. Recycling of food and green waste is becoming a national priority and with such a large population in London the local need for these facilities is pressing.  TEG's plant will produce renewable energy and high quality fertiliser, maximising the potential benefit from the carbon in these waste streams. The Dagenham Dock site is ideal for the facility and for servicing this part of London and we look forward to expanding our partnership and collaboration with Albion LLP through our first facility in the Capital."

ENDS

Contact:
The TEG Group Plc	Tel: [phone]
Michael Fishwick, Chief Executive	www.theteggroup.plc.uk
Peckwater PR	Tel: [phone]
Tarquin Edwards	[e-mail]
Ambrian Partners Limited (Nomad)	Tel : [phone]
Andrew Craig / Ben Wright

Editor's Notes:

TEG

TEG provides an in-vessel composting technology, which is one of the few approved technologies capable of treating animal by-product (ABP) waste, and 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").  TEG owns its composting technology and has an agreement with UTS Biogastechnik GmbH ("UTS") for the provision of AD technology into the UK waste markets.  The TEG processes are an economic alternative to landfill.

The TEG Silo Cage System

The Silo Cage system, one of the few technologies in Europe capable of treating this 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, are not unsightly and are environmentally friendly.

Collaboration with UTS

Having supplied equipment to more than 1,500 equipped biogas plants, UTS Biogastechnik GmbH is one of the world's leading biogas companies.  The UTS group of companies offers services in the planning, construction, delivery and installation of biogas plants and their key components.  The company has its own production facilities and service shops, technical design and development departments as well as mobile mechanical and biological customer service technicians to support the international client base.  UTS also develops and sells specialized mixers, pumps and a variety of solid/liquid separating devices related to the biogas and agro/food markets. The company is headquartered near Munich, Germany with subsidiaries in Italy, Hungary, Spain, the Czech Republic and now a rapidly developing company UTS Biogas Limited. to service the United Kingdom & Ireland markets.

About Anaerobic Digestion

Anaerobic digestion is a series of processes used for industrial or domestic purposes to manage waste and/or to release energy, in which micro-organisms break down biodegradable material in the absence of oxygen.

As part of an integrated waste management system, anaerobic digestion reduces the emission of landfill gas into the atmosphere.

Anaerobic digestion is widely used as a renewable energy source because the process produces a methane and carbon dioxide rich biogas suitable for energy production, helping to replace fossil fuels. The nutrient-rich digestate which is also produced can be used as fertiliser.

TEG Biogas (Perth) Limited

TEG Biogas (Perth) Limited ("TEG Biogas")  is a joint venture company established by TEG with Albion LLP.  TEG Biogas is constructing a 16,000 tonnes per annum AD plant at TEG's Glenfarg site to produce 0.7MW of electrical power and 0.2MW of heat that is to be used by Binn Eco Park.  The facility is due to be completed in March 2011 and commissioned in April 2011.

General

Customers include local authorities, waste management companies, food processors, 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. 

The Natural Organic Fertiliser Company Limited ("NOFCO"), a subsidiary of TEG, is a marketing company specialising in the development of end markets for compost products, an important aspect of all plant developments and key to local authority development.  The company has an expertise in the development of agricultural and horticultural markets and this capability is provided to customers to enhance TEG's overall service offering.

 

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