News blog

TEG Group/ Alkane Energy

  • BY: Andrew Hore |
  • POSTED: 12/01/2010 |

Waste composting plants operator TEG Group has concluded a waste supply contract with a Scottish council, which follows the recently announced separate link up with Alkane Energy.

The value of the Perth & Kinross contract with TEG’s Perthshire facility will be between £470,000 and £1.5m a year but the Alkane deal is likely to be even more important.

TEG is collaborating with coal bed methane and power generation company Alkane on new waste treatment plants that will provide power as well as compost.

The two companies will jointly bid for facilities where TEG will handle the waste side and Alkane will utilise its experience in turning the resulting methane into electricity. The two companies will jointly fund the projects and receive revenues in proportion to the funding.

TEG’s in-vessel composting plant will handle the green waste and anaerobic digester equipment supplied by TEG’s partner UTS will use food waste and certain other crops to produce gas. Alkane has experience handling gas engines and connecting plants to the grid. It will also negotiate the price the electricity is sold for. This operation will benefit from Renewable Obligation Certificates.

TEG has signed heads of agreement for a 20,000 tonnes per annum in-vessel compost plant and a 50,000 tonnes per annum anaerobic digester in Wales. This will be sited west of Bridgend on land provided by TEG‘s partner Anagest. TEG will build, own and operate the plant which will provide recurring revenues. Nearby farming land can provide crops that can be used in the anaerobic digester.

Alkane and TEG have made joint bids on the current round of Welsh Assembly tenders for biogas contracts. Once enough contracts have been won to make the project viable construction will commence on the new plant. This is likely to be early in 2010 and the plant should start to generate revenues in 2011. Alkane and TEG are also looking at other sites for plants.

At 37p a share, TEG is valued at £19.7m, while Alkane is valued at £16.5m at a share price of 17.75p.

© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds