Teg closes financing for, takes on EPC of 1.4-MW biogas power plant in London

Sep 3, 2012 - UK firm Teg Group PLC (LON:TEG) said today it would take charge of the engineering, procurement and construction (EPC) of its 1.4-MW Dagenham biogas power plant in London, for which it recently secured financing.

Teg holds a stake of around 24.5% in the special purpose vehicle -- TEG Biogas (London) Ltd -- that will build the plant. After it achieved financial close of the project, investment in TEG Biogas reached GBP 21 million (USD 33.4m/EUR 26.5m), GBP 11 million of which are coming from funds of UK alternative asset management firm Foresight Group. The latter and the other entities that provided funds for the project will own the remaining 75.5% in the project firm.

The Dagenham facility will use both in-vessel composting and anaerobic digestion to generate power. It will produce enough power for some 2,000 local households from food waste and mixed food and green waste sourced from people in the area, commercial and manufacturing enterprises.

EPC work on the project is expected to fetch GBP 16 million in revenues to Teg between September 2012 and the beginning of 2014, the planned construction period. Teg, which specialises in the development of organic composting and energy plants, will also provide operation and maintenance services for a term of 15 years for annual revenues of some GBP 1.3 million.

(GBP 1 = USD 1.588/EUR 1.264)

Choose your newsletter by Renewables Now. Join for free!