TEG.L Regulatory News (TEG)

28 Jul 2006 07:00

TEG Environmental Plc27 July 2006 For Release 7:00 a.m. 28 July 2006 TEG ENVIRONMENTAL PLC (TEG.L) Research and Development Project Between TEG ENVIRONMENTAL PLC and SHELL UK Limited TEG Environmental Plc ("TEG"), the cutting edge green technology company, whichconverts organic wastes into natural organic fertiliser, has entered into aResearch and Development Project with Shell UK Limited to investigate theopportunities for the composting of oil based mud drill cuttings from North Seaexploration activities using TEG Silo Cage Technology. The Contract is initiallyto trial bioremediation of oil based mud cuttings and if this is successful theparties will consider further the commercial potential to develop TEG Silo Cageplants for oil based mud drill cutting processing. Oil drill cuttings is a waste stream that arises during oil and gas drillingactivity. The material contains oil-based mud and is classified as a hazardouswaste. Currently, oil drill cuttings are subjected to thermal processing and theresidue is disposed of in hazardous waste landfill sites. The R&D work willfocus on bioremediation of oil based mud drill cuttings, which, if successfulwould convert a hazardous waste to a non-hazardous end product. The Project is for Shell to fund Research & Development work by TEG followed byfull-scale trials at TEG's plant in Perth, Scotland. Macaulay EnterprisesLimited, the commercial arm of the Macaulay Institute and a specialistenvironmental consultancy and laboratory services company, will work with theparties assessing the products and potential end use opportunities. It isintended that the R&D work will be carried out between July and October 2006 andthe pilot scale work will begin in November 06, assuming regulatory approval atthe site in Perth. Kathleen Howard, Project Leader, Shell Exporation & Production said: " We are delighted to have the opportunity to work with TEG Environmental onthis research project and are optimistic about developing new cutting-edgetechnology. This project underlines our continued commitment to develop new environmentallyfriendly technologies in the global oil and gas industry." Commenting on the research and development project, Chief Executive of TEG MickFishwick said: "We are of course delighted to reach agreement with a company like Shell and tobe a part of their progressive approach in environmental management and we areoptimistic of success in our trial work. The control from a TEG Silo Cage system lends itself to processing difficultwaste streams and the rapid, dry composting process is ideal for environmentalcontrol and consistent product quality. This of course represents a significantpotential opportunity for TEG, but at the same time we must be prudent andrealistic; while the laboratory trials we have carried out previously on oilbased mud drill cuttings have been very encouraging, they have nevertheless beenon a small scale and there are still a number of hurdles to be overcome beforethe TEG process can become a proven commercial option for the treatment of suchmaterials." ENDS Contact: TEG Environmental Group Plc Tel: 01772 314 100Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4758Tarquin Edwards Mob: 07879 458 364 Editor's Notes: TEG provides an in-vessel composting technology, which is one of the fewapproved technologies capable of treating animal by-product (ABP) waste. Planteconomics are predominantly driven by the gate fees charged, rather than thevalue of the end product (compost). The TEG process is an economic alternativeto landfill. The Silo Cage system, one of the few technologies in Europe capable of treatingthis waste, is a natural process producing compost as an end product, used as anexcellent soil conditioner that fertilizes, retains moisture, provides structureand reduces the incidence of plant disease. TEG's Silo-Cages will be housed in aself-contained building, are not unsightly and are environmentally friendly. Potential customers include local authorities, waste management companies, foodprocessors, farmers and landowners. The Company's expanding market is driven byincreasingly stringent EU and UK legislation regulating the treatment anddisposal of organic waste. Statutory targets for the diversion of waste fromlandfill increase annually through to 2020, increasing TEG's market opportunityyear on year. The Waste Resource Action Programme estimates that 450 compostingplants will be needed by 2020 to satisfy local authority requirements alone, andthere is increasing demand from the private sector driven by ABP legislation. This information is provided by RNS The company news service from the London Stock Exchange