Green tech firm TEG making progress

LANCASHIRE green technology company TEG Group says it has made progress on key projects in London and North Wales.

The Preston company, which develops and operates organic composting and energy plants, said it had secured funding and planning permission for its landmark scheme in Dagenham, while in Wales its venture with Alkane Energy is moving forwards.

The funding for the Anaerobic Digestion and In Vessel Composting plant at the Sustainable Industries Park in Dagenham, has been agreed with the Foresight Environmental Fund.

TEG said it had signed Heads of Terms with Foresight,  which will be lead funder for the project.  Foresight is now engaging with other funders to complete the funding required for the project and to form a new company, TEG Biogas (London) Limited (“Biogas London”). 

The funding includes a loan for £1.9m from the London Waste and Recycling Board, which was secured nearly a year ago.

TEG said the plant supply contract between itself and Biogas London is “unlikely” to be completed before the end of this calendar year and it will not be able to book the anticipated revenues for the project in the current year to the end of December, but will recognise this revenue in the year to December 2012.

In North East Wales, where TEG’s partner Alkane Energy has a long term food waste contract from three local authorities, the project is approaching financial close.

TEG and Alkane will create a joint venture company, to be called NEAT Biogas in which TEG will be a 70% equity holder and Alkane 30%.  Under the contract, NEAT is planning to construct and operate a new 20,000 tonnes per annum AD plant to process the food waste.

Full year revenues for the operating project are expected to build to around £2m a year and the facility is expected to generate approximately 1MW of renewable power, sufficient to satisfy the needs of some 2,000 homes.

TEG chief executive Mick Fishwick said: “In a very challenging financial market, we are delighted to have made such good progress in the execution of these two flagship projects.

“We look forward to both projects moving to completion and into construction in 2012”.