Partnership and Collaboration

RNS Number : 5842O

TEG Group (The) PLC

10 March 2009

 



For release

07:00

Date: 10.03.2009

The TEG GROUP PLC (TEG/L)

('TEG' or 'the Company')

TEG Announces Partnership with German Technology Company UTS 

New Anaerobic Digestion Plants to be Developed in UK

The TEG Group PLC ('TEG') and UTS Biogastechnik GmbH ('UTS') have entered into a partnership and collaboration agreement to develop Anaerobic Digestion ('AD') facilities in the UK. The partnership brings together TEG's experience and knowledge of the UK market for organic waste treatment, and TEG's operational experience and agricultural end market experience with UTS's AD technology and expertise in the development of AD facilities in the food waste sector.   

Munich based UTS is a market leader in AD technology with an impressive track record of facilities throughout Europe, having constructed more than 70 turnkey AD plants and supplied equipment into 1,500 AD facilities over a period of 15 years. Crucially, UTS has a strong record in the development of facilities processing food and catering waste, a feedstock the companies believe will be utilised in many new AD facilities in the UK.

TEG offers the partnership a track record in delivering projects in the Local Authority and waste management sectors in the UK with the engineering and technical expertise to construct, maintain and operate facilities.  TEG is currently constructing its eighth facility and offers the partnership a robust and established project engineering capability.  The UTS technology fits well with the TEG Silo Cage composting technology, allowing the partnership to offer Local Authorities and waste management companies the full range of solutions including TEG Silo Cage In Vessel Composting ('IVC'), UTS AD facilities or combined solutions with both technologies.

Under the terms of the partnership, the companies will work exclusively together in the Local Authority and waste management sector, and with TEG's established private sector clients. As an established operator in the UK, TEG will lead bids and tenders utilising the UTS technology. UTS will continue to market directly into other sectors such as agriculture and the general private sector. TEG will also offer the partnership its engineering, project and operational expertise.  

Commenting for TEG, Chief Executive Mick Fishwick said 

'There is a clear emphasis from Central Government on the potential for Anaerobic Digestion as a form of renewable energy, whether as electricity or as a captured methane fuel.  Whilst the technology is relatively new to the UK, with only a handful of AD operators in the organic waste sector, UTS is widely experienced in food waste applications in Europe and TEG believes UTS offers a superior AD technology for this type of waste stream. Our two companies have a very good cultural fit and we look forward to working with UTS'

'TEG is well established in the organic waste sector and its Silo Cage IVC technology is now the leading technology in the UK. We believe a partnership with UTS places us in the unique position of being able to offer proven technologies in both IVC and food waste AD. We have had very positive market feedback on the potential for joint technology solutions, offering renewable energy recovery with the stability of a proven, established IVC composting plant.'

Commenting for UTS, Managing Director Ludwig Dinkloh said

'UTS has been following the UK market for some time and is excited about the growing biogas opportunities and the new Government plans to support renewable energies. This has already resulted in 2008 in the formation of our UK subsidiary UTS Biogas Limited, enabling us to service UK customers locally.'

'The collaboration with TEG will strengthen our activities further: for us it is an ideal match with a company using complimentary technology and which is already beginning to mobilize in the 'waste-to-energy' market and is well recognized by local municipalities and waste management companies. In return, we bring our extensive biogas experience on multiple plants and various substrates to the table in combination with proprietary technology in pumping, mixing and dosing equipment. The initial project work by TEG/UTS has proved to be very successful and we are looking forward to the realization of our first ventures together.'

ENDS

Contact:

The TEG Group Plc                                 Tel: [phone]

Michael Fishwick, Chief Executive

UTS Biogastechnik GmbH                       Tel: [phone]

Ludwig Dinkloh, Vice-President

UTS Biogas Ltd.                                      Tel: [phone]

Rob Heap, General Manager

Adventis Financial PR                            Tel: [phone]

Tarquin Edwards                                       07879 458 364

Canaccord Adams (Nomad)                    Tel : [phone]

Robert Finlay

Guy Blakeney

Editor's Notes: 

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. 

TEG

TEG provides an in-vessel composting technology, which is one of the few approved technologies capable of treating animal by-product (ABP) waste. Plant economics are predominantly driven by the gate fees charged, rather than the value of the end product (compost). The TEG process is an economic alternative to landfill.

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.

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 Waste Resource Action Programme estimates that 450 composting plants will be needed by 2020 to satisfy local authority requirements alone, and there is increasing demand from the private sector driven by ABP legislation.

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 to be provided to customers to enhance TEG's overall service offering.

 

END

 

 

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