Project setback for TEG as offer period continues

GREEN energy from waste specialist TEG said a joint venture partnership had pulled out of a project in North Wales due to funding difficulties, but underlying trading was still strong.

The Preston company said the aborted project was for an anaerobic digestion facility – where organic waste is turned into energy – but its joint venture subsidiary with Alkane Energy, NEAT Biogas,  had failed to to agree contractual terms with funders.
 
Better news was provided in relation to the funding for a major project in Dagenham east London, with fund-raising now in the late stages and planning permission for the the combined in-vessel composting and anaerobic digestion facility secured.

The company said: “TEG’s own operations continue to perform well.  Waste volumes and revenues continue to grow as local authority and private sector customers maintain the drive to divert organic waste from landfill.”

In relation to the possible sale of the business, TEG said KPMG’s Manchester corporate finance team were continuing to advise it and conduct a strategic review.

TEG said:”The company announced on January 23  that it had appointed KPMG to conduct a strategic review and announced on January 26 that it had entered into an offer period.  

“KPMG continues to advise the company in relation to the offer process…  A further announcement in relation to the strategic review will be made in due course.”