Re Contract

RNS Number : 4384I

TEG Group (The) PLC

15 March 2010

 



 

For release

07:00

Date: 15 March 2010

The TEG GROUP PLC (TEG/L)

("TEG" or "the Company")

TEG Concludes Contract for

Co-Mingled Waste with Essex County Council

The TEG Group Plc, the AIM-listed cutting edge green technology company, which develops and operates organic composting and energy plants, is pleased to announce that its subsidiary TEG Environmental Limited has concluded a contract with Essex County Council and Southend Borough Council ("the Council") to process co-mingled food and garden waste ("Mixed Waste").  The services will commence on 1 June 2010 and the Mixed Waste will be processed at TEG's in-vessel composting facility at Carleton Rode, which was acquired by the Company on 19 June 2009.

The contract is a Framework Agreement for a 4-year term during which TEG will bid annually for waste, in lots, that will be available each contract year.  The waste volume for the remaining period of 2010 has already been determined by the Council and TEG will receive an estimated volume between 7,000 and 11,000 tonnes over the 6 month period from 1 June 2010.  The volume and revenues for the remaining term of the Framework Agreement will be determined at the start of each Contract Year.

Commenting for TEG, Chief Executive Mick Fishwick said: "We are delighted to have been awarded the Mixed Waste contract by Essex County Council and Southend Borough Council. TEG has already been successful in renewing key contracts with existing customers and with the award of this Council contract the Carleton Rode facility will be at full capacity by June 2010, exceeding the objectives set by the Company on acquisition."

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") 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.

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.

 

END

 

 

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