4 Jun 2010 07:00
| For release | 07:00 | Date: 4 June 2010 |
The TEG GROUP PLC (TEG/L)
("TEG" or "the Company")
TEG Concludes Licensing Agreement
With UTS
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 Licensing Agreement ("the Agreement") with UTS Biogastechnik GmbH ("UTS") for the supply of UTS anaerobic digestion ("AD") technology into the UK. The Agreement is subsequent to the collaboration agreement between the parties that was announced on 10 March 2009.
The Agreement is for a period of 5 years and encompasses the provision by UTS of technical support, design, data and training. UTS will supply all proprietary plant and equipment while TEG will project-manage all installations and source standard equipment locally in the UK. The Agreement is exclusive in the Local Authority and waste markets. TEG will pay to UTS an annual fee for professional services and a royalty on actual plant sales.
Commenting for TEG, Chief Executive Mick Fishwick said:
"We are delighted to have developed our relationship with UTS and to have secured a licensing agreement and long term commitment between the parties. TEG has made considerable progress in the development of its AD business and we look forward to building and operating our first plants. The announcement by the new Government of a specific commitment to AD has reinforced the importance of TEG and UTS securing its relationship and we are confident the market will continue to develop rapidly."
The company notes that its Nomad and Broker has changed its name from Canaccord Adams Limited to Canaccord Genuity Limited.
ENDS
Contact:
The TEG Group Plc Tel: 01772 644980
Michael Fishwick, Chief Executive
Peckwater PR Tel: 07879 458 364
Tarquin Edwards
Canaccord Genuity (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") or Feed-in Tariffs ("FITs"). 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 new Government has announced it intends to provide incentives for a "huge" expansion of AD in the UK.
The Natural Organic Fertiliser Company Limited ("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 provided to customers to enhance TEG's overall service offering.