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TEG Biogas plans plant

In Scotland, joint venture TEG Biogas is to construct and operate a 16,000 tonne-a-year food waste anaerobic digestion plant in Glenfarg, Perthshire.

TEG Biogas has been awarded a grant for approximately 20% of the plant and equipment capital funding (700,000) by Zero Waste Scotland, the Scottish Government funded organisation that provides support to the waste and recycling sector.

The grant will help fund the purchase of the AD plant and equipment.

It is expected that the AD plant will be operational by the end of Q1 2011. TEG will operate the plant on behalf of TEG Biogas under a management agreement.

Green technology company TEG Group formed TEG Biogas (Perth), a 50:50 joint venture with Albion Ventures. TEG is to supply the AD plant to TEG Biogas. Albion has provided approximately 80% of the remaining total capital in the form of equity and debt.

The balancing capital will be provided by TEG in the form of equity and a working capital loan, the latter to be issued out of the proceeds of the sale of the plant to the JV.

Total capital expenditure is estimated to be approximately £4.5 million (€5.4 million), including working capital.