The TEG Group Plc, the specialist builder and operator of composting and energy plants, has announced a collaboration agreement with Alkane Energy Plc,the ?gas to power? energy company, to work together to develop anaerobic digestion (AD) facilities in the UK.

The partnership will create a powerful market offering, bringing together TEG?s proven experience in organic waste treatment and Alkane's energy sector experience and its ability to secure electricity prices, Renewable Obligation Certificates ("ROCS") and heat sales. It will also offer attractive opportunities to maximise carbon footprint reduction, offering advanced anaerobic digestion technology alongside a cost-effective route for energy from waste.

The two companies intend to bid for contracts with local authorities and other waste customers and invest jointly when facilities are developed. TEG will lead the bids and secure contracts with Local Authorities and other waste customers. TEG will also fund, construct and operate the waste management and digestion plants and will produce methane to be managed by Alkane.  Alkane will fund, construct and operate the energy plants, including the engine and gas handling plants and grid connections. 

The two companies have already submitted joint bids for the current round of Welsh Assembly Government tenders for AD facilities.  They are also developing other projects together, where planning and permitting is being progressed with the aim of moving into the construction phase as soon as possible.

Commenting for TEG, Chief Executive Mick Fishwick said: "We are delighted to have entered into this agreement with Alkane.  TEG?s skills and expertise in the organic waste sector fit perfectly with the skills of Alkane in the methane and energy sector.  With the collaboration announced earlier this year with UTS for technology supply, I believe this partnership is ideally placed to take the lead in the emerging AD sector."