TEG lands 21m contract in capital
Preston organic waste specialist TEG has secured funding to construct a £21m organic waste plant at East London's Dagenham Dock.
The new facility will be capable of processing 49,000 tonnes of food and green waste per annum via anaerobic digestion (AD) and in-vessel composting technology on a 4.7 acre site on the Mayor of London's 60 acre London Sustainable Industries Park.
Boris Johnson has committed more than £10m for infrastructure development on the site, which the TEG scheme will be the first to benefit from.
It will be the first AD plant in central London and will generate approximately 1.4MW of electricity, sufficient to power approximately 2,000 homes, as well as 50,000 tonnes of compost for agricultural use.
The contract is expected to generate approximately £16m in revenues for TEG over the period of construction. Work is due to commence this month, with completion scheduled for the first quarter of 2014.
In addition, TEG has been awarded an operating and maintenance contract to operate the facility on behalf of the SPV. The O&M contract is for a 15-year term with annual revenue of approximately £1.3m per annum, escalated annually.
Mick Fishwick, chief executive of TEG Group, 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.”
Business secretary, Vince Cable, said: “This project represents the first waste investment in the run up to the establishment of the UK Green Investment Bank and sends a clear message to the market and to potential co-investors that we are committed to investing in the UK's green infrastructure.”
The Mayor of London, Boris Johnson, added: “It is good news that TEG becomes London's first anaerobic digestion plant providing an innovative, environmentally friendly way to manage the city's waste, helping to cut down on costly landfill. “