The contract will see 12,000 tonnes of mixed food and green waste from collections due to start in and around the Ipswich area.
The waste will be composted in a new 48,000 tonne capacity plant which Bioganix are planning to build on Parham Airfield in Suffolk, previously the site of a Waste Recycling Group transfer station. After composting it will spread on local arable land.
Bioganix managing director, Nick Helme said: “This was a competitive tender against a number of other organisations and we are extremely pleased that Suffolk County Council has selected Bioganix to work with them over the next 10 years.”
Mr Helme said the company was currently “in the process of finalising contractual details, arranging the necessary finance and acquiring the premises” that they hope to use to undertake the composting. He added that building work was due to commence at the beginning of 2006.
Bioganix operates a 12,000 tonne Category 3 animal and food waste processing plant in Leominster and has developed its own in-vessel technology using anaerobic digestion.
The majority of the company's input comes from commercial and industrial operations but Mr Helme said Bioganix was open to taking more waste from local authorities.
Research
The company, which started in 2001 and accumulated losses of £800,000 in its first two years through outlay on research and development, is now reporting that it has been operating profitably since 2004.
Bioganix has now decided to raise capital for future plants in the UK and overseas through floating on AIM – the alternative London stock exchange.
Chairman of Bioganix's parent company 7Y Group said: “The recent success at Ipswich has significantly strengthened the already profitable Bioganix business and we hope that it will help us achieve a successful flotation.”
He added that in the meantime the company is raising further capital for the Suffolk project by issuing of convertible loan notes to existing 7Y Group shareholders and selected investors.
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