TEG.L Regulatory News (TEG)

14 Dec 2005 07:01

TEG Environmental Plc14 December 2005 For Release 7:00 a.m 14 December 2005 TEG ENVIRONMENTAL PLC Planning permission granted for Swansea contract TEG Environmental Plc ("TEG" or "the Company"), the cutting edge greentechnology company, which converts organic wastes into natural organicfertiliser, announces that the Company has received planning permission for the£925,000 plant to be constructed under its contract with the City and County ofSwansea ("Swansea" or "CCS"), for the provision of the TEG Silo-Cage in-vesselcomposting system. This contract, announced in March 2005, represents TEG's first "turnkey"technology sale, including building and infrastructure, and will positively addto TEG's revenues and earnings in 2006. The Company will draw down paymentsagainst agreed contract milestones during the construction, commissioning andhandover phases of the contract. The contract is for the design, supply and installation of a 14 cage TEG SiloCage plant to recycle 7,000 tonnes per annum of biodegradable municipal wastecollected by CCS. The product will be organic compost for use in agriculture andhorticulture. Plant installation and commissioning is expected to be completedin mid 2006 with operational handover to CCS in late 2006 and final handover duein late 2007. Commenting, Mick Fishwick, Chief Executive of TEG Environmental, said:"This technology sale, in combination with the granting of planning permission,is a transforming event. It is excellent news for TEG and we hope that itrepresents the start of a long-lasting relationship with CCS in the jointfurther expansion of Swansea's composting capacity. As with all localauthorities, CCS has a growing obligation to divert waste from landfill andcompost its organic waste streams, and we hope there will be many more such TEGplants to be built in the future." ENDS Contact: TEG Environmental Group PlcMichael Fishwick, Chief Executive 01772 314100 Binns & Co PR LtdPeter Binns/ Tarquin Edwards 020 7786 9600 Editor's Notes: TEG provides an in-vessel composting technology, which is one of the fewapproved technologies capable of treating animal by-product waste. Planteconomics are driven by the gate fees charged, rather than the value of the endproduct (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 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. This information is provided by RNS The company news service from the London Stock Exchange