TEG secures £21m for London plant
TEG Group, the Chorley-based green technology firm which develops organic composting and energy plants, has secured £21m for a new site in London.
The plant, at the London Sustainable Industries Park (LSIP) in Dagenham, will be London’s first anaerobic digestion facility – capable of processing 49,000 tonnes of food and green waste a year.
TEG says it will be able to generate 1.4mw of electricity, enough for 2,000 homes, and 14,000 tonnes of compost for agriculture.
Private equity investor Foresight Group has committed £11m and raised a further £2m from institional fund Quercus Assets Selection.
The balance is a £7.9m loan from the London Waste and Recycling Board (LWARB) and Investec Bank.
The new facility will be owned by a special purpose vehicle called TEG Biogas. TEG Group said it will earn £16m from the construction and £1.3m a year from a 15-year maintenance and operation contract once it’s up and running in 2014.
Chief executive Mick Fishwick said: “We are delighted to have secured funding for our first major project in the South East, which is set to become a flagship operation for TEG and which will make a significant contribution to London becoming a model European city for recycling.”
He added: “We are looking forward to starting work at Dagenham later this summer to provide this valuable service in London by early 2014.”
The LSIP has been championed by London mayor Boris Johnson. He said: “TEG is also the first to start building at our new industrial park, which I have committed £10m to transform from brownfield land into an attractive space for businesses.
“We want the LSIP to become a magnet for energy and environmental enterprises to support hundreds of new jobs.”
