Business Secretary Vince Cable has announced that the Government-appointed fund managers for the Government’s UK Green Investments infrastructure fund in TEG Group.
TEG Group has received funding to construct a £21 million anaerobic digestion plant in east London’s Dagenham Dock.
The new facility will be capable of processing 30,000 tonnes of food waste via anaerobic digestion and 19,000 tonnes of green waste from an in-vessel composting plant.
Around 1.4MW of electricity will be generated by the AD plant and will be used by tenants on the 60 acre London Sustainable Industries Park.
Fund manager Foresight’s UK Waste and Resources and Energy Investments fund is investing £2 million with a further £2 million of matching private sector funding. Foresight Group has invested a total of £11 million into a new special purpose vehicle TEG Biogas (London) to allow for the construction and operation of the new plant.
Foresight were appointed by the Department for Business, Innovation and Skills to invest £50 million on behalf of UK Green Investments.
Vince Cable said: “This project represents the first waste investment in the run up to the establishment of the UK Green Investment Bank, and sends a clear message to the market and to potential co-investors that we are committed to investing in the UK’s green infrastructure.”
TEG Group chief executive Mick Fishwick said: “We are looking forward to starting work at Dagenham later this summer to provide this valuable service in London by early 2014. We will be using our award winning IVC technology which is proven in the UK combined with best of breed European AD technology, manufactured in the UK.”
Mayor of London Boris Johnson added: “This £21 million investment into Dagenham is fantastic news providing new employment opportunities. TEG is also the first to start building at our new industrial park, which I have committed £10 million to transform from brownfield land into an attractive space for businesses.
“We want the London Sustainable Industries Park to become a magnet for energy and environmental enterprises to support hundreds of new jobs.
“It is also good news that TEG becomes London’s first anaerobic digestion plant providing an innovative, environmentally friendly way to manage the city’s waste, helping to cut down on costly landfill.”