The contract, worth between 1.5 and 2 million, starts on June 1 2012 and will see TEG treat almost 12,000 tonnes of green waste from the council at its subsidiary Simpros open windrow composting site in Coven.
The council is set to save 400,000 over the life of the contract, which has the option to extend for a further seven years, by consolidating its green waste treatment. Prior to the contract the council sent its green waste to three sites in the area Tipton, Huntington and Coven. Now the majority of the councils waste will be sent to Coven, with a small amount still taken to Tipton.
Simpro had been working with the council on an ad hoc basis, accepting approximately 2,000 tonnes of green waste from South Staffordshire. The formal contract extends this relationship to cover the majority of the councils green waste.
Once the green waste has been processed the resulting compost will be used by the local agricultural community.
Commenting on the new contract Mick Fishwick, chief executive of TEG, said: We are very pleased to have secured a formal long-term contract after many years of working with the council. TEG prides itself on providing a reliable and reputable service for the treatment of all organic waste and we are particularly pleased that our green waste prices represent excellent value for money for the council.
Councillor Joan Williams, cabinet members for environmental services at the council, said: We think this a great long term deal for local tax payers. But not only is it saving the council money, its going to have a positive impact on the local environment as well.
Service
The councils refuse and recycling collection contractor, Biffa, collects approximately 12,000 tonnes of green waste from 43,000 homes in the area.
The council said that the collection days for green waste will remain the same under the new contract. At present Biffa collects waste and recycling on an alternate weekly schedule, with residual waste collected one week and green waste and recycling the next.
The recycling is collected in two containers a green box for plastics, metals and glass and a white sack for paper and cardboard. However a spokesman for the council told letsrecycle.com that it is looking to move to a commingled system using a wheeled bin next year when the refuse and recycling contract is re-tendered.
TEG
Simpros Coven site can process up to 30,000 tonnes of green waste every year. TEG acquired Midlands-based Simpro in a deal worth up to 6 million in 2010 (see letsrecycle.com story) increasing TEGs annual processing capacity from 115,000 tonnes to 295,000 tonnes.
Following the acquisition the company was named preferred bidder for a 7.5 million anaerobic digestion plant in North East Wales (see letsrecycle.com story).
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