2 Dec 2009 07:00
| For release | 07:00 | Date: 2 December 2009 |
The TEG GROUP PLC (TEG/L)
("TEG" or "the Company")
New Business Award and Project Update
TEG Appointed Preferred Bidder for
Mixed Waste Contract by Perth & Kinross 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 it's subsidiary TEG Environmental Limited has been selected as preferred bidder for a contract to process mixed food and garden waste ("Mixed Waste") by Perth and Kinross Council. The contract will commence in March 2010 and the Mixed Waste will be processed at the TEG Glenfarg in-vessel composting facility in Perthshire.
The contract will be for a 3-year term with a potential further 2-year extension and its value will be in the range of a minimum of £470,000 per annum up to £1,050,000 per annum, depending upon the rate of arisings of Mixed Waste in the Perth and Kinross region. The contract will cover all Mixed Waste collected in the region.
Commenting for TEG, Chief Executive Mick Fishwick said: "We are delighted to have been awarded the business by Perth and Kinross Council. The Mixed Waste contract will underpin our operation at Glenfarg and we are pleased to be working closely with the Council to provide this valuable composting service."
Separately, and further to its update announcement of 15 September 2009, TEG has been informed by its client Taywell Composting Limited ("Taywell") that Taywell now expects to return to planning committee regarding its Matlock project in early 2010, to determine compliance with Defra guidelines on odour management and the outstanding Section 106 Agreement. As other projects are currently ahead of original forecast, TEG does not anticipate this will impact on management's overall revenue expectations for 2009.
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.
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.