21 Dec 2009 07:00
| For release | 07:00 | Date: 21 December 2009 |
The TEG GROUP PLC (AIM: TEG)
("TEG" or "the Company")
Collaboration Agreement Signed with Alkane PLC (AIM: ALK)
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 it has entered into a collaboration agreement with Alkane PLC ("Alkane"), the AIM-listed alternative energy company, to jointly develop Anaerobic Digestion ("AD") facilities in the UK.
The partnership will bring together TEG's experience in the waste sector and its proven ability to secure projects and operate waste treatment facilities, with Alkane's knowledge and experience of the energy sector and its ability to secure electricity prices, Renewable Obligation Certificates ("ROCS") and heat sales.
Under the terms of the collaboration, TEG and Alkane ("the Parties") will bid for AD projects throughput the UK in the waste sector. TEG will lead the bids and secure contracts with Local Authorities and other waste customers with the Parties investing jointly in those facilities that are developed. TEG will fund, construct and operate the waste management and digestion plants and will produce methane to be managed by Alkane. Alkane will fund, construct and operate the energy plants, including the engine and gas handling plants and grid connections.
The Parties have already submitted joint bids for the current round of Welsh Assembly tenders for AD facilities. They are also developing other projects together, where planning and permitting is being progressed with the aim of moving into the construction phase as soon as practical after the permitting process is complete.
Commenting for TEG, Chief Executive Mick Fishwick said: "We are delighted to have entered into this agreement with Alkane. TEG's skills and expertise in the organic waste sector fit perfectly with the skills of Alkane in the methane and energy sector. With the collaboration announced earlier this year with UTS for technology supply, I believe this partnership is ideally placed to take the lead in the emerging AD sector."
ENDS
Contact:
The TEG Group Plc Tel: 01772 644980
Michael Fishwick, Chief Executive
Peckwater PR Tel: 07879 458 364
Tarquin Edwards
Canaccord Adams (Nomad) Tel : 020 7050 6500
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.
Alkane
Alkane Energy plc is an alternative energy company that owns and operates power generation plants using coal mine methane as fuel,
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 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.