TEG.L Regulatory News (TEG)

18 Aug 2005 07:00

TEG Environmental Plc18 August 2005 For release 7:00am 18th August 2005 TEG Environmental Plc £14m Contract in Scotland for Large Composting Plant TEG Environmental Plc ("TEG" or "The Company"), the leading edge greentechnology company which converts organic wastes into natural organicfertilizer, announces it has won an 11 year contract to acquire the rights totake over and develop a composting operation at a waste management site inPerthshire, Scotland. The operation is one of the largest animal by-product("ABP") composting operations in the UK and, as the only ABP compostingoperation in Perthshire, is set to grow considerably. The Perthshire contract, a build, own and operate composting plant, willgenerate immediate revenues in excess of £1 million per annum. It representsTEG's largest contract gain since it listed on AIM in July 2004. The contract requires the installation of 56 TEG Silo-Cages for rapid compostingof bio-degradable waste from a broad range of industries, such as organicsludge, biosolids, food, animal by-products, broiler house and other waste. Tegwill continue to treat the 35,000 tonnes of waste per year currently managed atthe site until the Silo-Cages are installed at which stage the existing processwill be replaced. Customers include Sita UK Ltd, who will deliver organic wastefrom its contract with the Perth & Kinross Local Authority. The contract willcommence on 29 August 2005, and TEG will assume operational responsibility fromthat date. The TEG Silo Cage plants will be installed shortly after and will befully operational by early 2006. Commenting on the contract win in Scotland, Mick Fishwick, TEG's ChiefExecutive, said: "This contract will have a major impact on TEG's annualturnover, cashflow and its financial position. It provides revenues from 1September and the opportunity for TEG to install and operate its plant. The TEGtechnology was chosen because of its high throughput, its robust constructionand the quality of its compost product. It will be installed to enhance theoperation and will ensure it remains compliant with all legislation. Theexisting operator is also a very large farming business and uses the compostproduct, which brings the major advantage of an immediate outlet for ourcompost. No difficulties are anticipated on the Perthshire site since it is anestablished, well run operation with planning permission and a waste managementlicence in place." In June, TEG successfully gained ABP positive release approval from the StateVeterinary Service and this is expected to become a full approval in August2005. This approval will enable TEG to build and develop plants across the UK.In July TEG secured an order, subject to planning consent, from Banham CompostLtd, a subsidiary of Banham Poultry Ltd, for the purchase of a £2m plant. The Company next intends to develop its site at Sherdley Farm, near Preston, forwhich it has planning permission and a waste management licence. TEG has announced it will be raising funds for the Perthshire contract by ashare offering due for completion in early September 2005. ENDS For further information please contact: TEG Environmental PlcMick Fishwick, Chief Executive 01772 422220 Binns & Co PR LtdPeter Binns 020 7786 9600Tarquin Edwards 020 7153 1483 Editor's Notes: TEG provides an in-vessel composter, which is one of the few approvedtechnologies capable of treating animal by-product waste. Plant economics aredriven by the gate fees charged, rather than the value of the end product(compost). The TEG process is an economic alternative to 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 restricts weed growth. TEG's Silo-Cages will be housed in a self-containedbuilding, 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. This information is provided by RNS The company news service from the London Stock Exchange