In a 14 million deal, the company is to take over the operation of the Glenfarg site from a neighbouring farming business for an 11-year period from August 29. TEG will install its enclosed “Silo-Cage” composting system so the facility can treat catering and food waste.
 TEG Environmental's demonstration plant in Preston is undergoing tests with the State Vetinerary Service for treating animal by-products |
TEG, which listed on the Alternative Investments Market in June 2004, is to raise funds for the Perthshire contract through a share offering next month. It has said it expects the contract to generate immediate revenues “in excess of 1 million per annum”.
Initially TEG will continue with the site's open windrow operation, which has a capacity to process about 35,000 tonnes of green waste each year. Meanwhile, it will be installing 56 Silo-Cages that will be able to treat compostable waste from both local authority contracts and the commercial sector.
Existing customers for the site include SITA UK, which uses the site for its contract with Perth & Kinross council.
Mick Fishwick, chief executive of TEG, said of the contract: “The TEG technology was chosen because of its high throughput, its robust construction and the quality of its compost product.”
Mr Fishwick said the farming business that is relinquishing operation of the Glenfarg composting site will remain a major outlet for the compost product from the site.
System
TEG's Silo-Cage system treats material in a continuous flow over a period of up to 14 days, subject to temperatures sufficient to render the animal by-products harmless. Resulting compost can then be matured for between eight and 21 days before use.
The company has a demonstration plant at Sherdley Farm, near Preston, and is currently working with the State Veterinary Service with the expectation of gaining full Animal By-Products Regulation approval for its technology this month.
TEG gained a 2 million contract to provide one of its systems to a poultry company in Norfolk last month (see letsrecycle.com story).
Letsrecycle.com is holding a special conference on animal by-products and food waste on September 28. For more details see the letsrecycle.com events page
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