Re Agreement

RNS Number : 5816A

TEG Group (The) PLC

12 October 2009

 



For release

07:00

Date: 12 October 2009

The TEG GROUP PLC (TEG/L)

("TEG" or "the Company")

TEG Announces New Site Development

Collaboration with Anagest Limited in South Wales

The TEG Group Plc, the AIM-listed cutting edge green technology company, which develops organic composting and energy plants, is pleased to announce that it has signed Heads of Terms for a proposed collaboration agreement with Anagest Limited ("Anagest") to develop a co-located anaerobic digestion ("AD") and in-vessel composting ("IVC") facility on Anagest's site ("the Site") at Stormy Down near Bridgend.  It is intended that the Site will be developed to provide up to 70,000 tonnes per annum of organic waste treatment capacity.

Anagest intends to construct a 50,000 tonnes per annum AD facility on the Site into which TEG will exclusively supply food waste and TEG will pay a fixed annual fee to secure that capacity. It is intended that TEG will construct waste reception facilities and a 20,000 tonnes per annum TEG Silo Cage IVC plant which it will operate and through which it will process the remaining 20,000 tonnes of the total 70,000 tonnes of organic waste. TEG is to secure all waste supply contracts and will lead the tendering activity to supply waste to the Site. Capital funding for the AD facility and the IVC installations will be provided by Anagest and TEG respectively. Completion of the collaboration agreement is to be conditional on Board approval from both TEG and Anagest as well as confirmation of finance for each party's respective capital contributions.

The Site is adjacent to a cement manufacturing facility and an extensive area of farm land. The cement manufacturing company and farm owners are joint venture partners in Anagest and will utilise heat and the digestate from the AD facility. The site has planning permission in place for the AD facility and the planning application for the IVC facility is underway. The AD plant will utilise technology supplied by UTS Biogastechnik GmbH ("UTS"). TEG and UTS announced a collaboration in March 2009.  

Subject to finalising the terms of the commercial agreement, TEG and Anagest intend to commence site development in early 2010.

Commenting for TEG, Chief Executive Mick Fishwick said: "We are absolutely delighted to have concluded this agreement with Anagest and to be looking forward to the first UTS plant in the UK.  The Site is ideal for this type of development and is ideally placed to be the anticipated South West Wales food waste processing hub. Marketing activity is already underway and we look forward to commencing development in the near future."

ENDS

Contact:

The TEG Group Plc                        Tel: [phone]

Michael Fishwick, Chief Executive

Peckwater PR                                Tel: [phone]

Tarquin Edwards                 

Canaccord Adams (Nomad)            Tel : [phone]

Robert Finlay

Guy Blakeney

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"). 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.

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. 

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 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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