This blog is designed to highlight the diversity of views and news stories on urban energy topics that appear daily in the media. They are intended to provoke discussions on how cultural, geographic, political, and institutional influences shape the way energy markets operate and energy policies are made in cities around the world.
Thursday, September 06, 2012
TEG wins EPC contract for London’s first anaerobic digester
Work to develop London’s first anaerobic digestion (AD) facility is underway. The TEG Group recently announced it has secured funding to construct a £21 million ($33.4 million) organic waste facility at East London’s Dagenham Dock, including an AD plant.
The TEG Group PLC signed an engineering, procurement and construction contract to construct and operate the plant, and was awarded a 15-year operating and maintenance contract. Construction on the facility is set to begin in September. The project is currently scheduled to be operational during the first quarter of 2014.
In addition, gas-to-power producer Alkane Energy plc was selected as a project subcontractor, and will provide the gas-to-power capabilities at the proposed biogas project. Information released by Alkane Energy notes that the capital contract is worth £1.6 million ($2.5 million). In addition, the company has signed a 15-year maintenance contract.
According to information released by The TEG Group, the plant will be capable of processing 49,000 tons of biomass each year, including a 30,000 ton-per-year AD plant and a 19,000 ton-per-year in-vessel composting (IVC) plant. Biogas produced at the plant will be used to generate approximately 1.4 MW of power. The project will also produce more than 36,000 tons of digestate per year, along with 14,000 tons of compost.
Once complete, the project will take in a variety of feedstocks, including separated food waste. It will also process mixed food and green waste produced by local households, commercial and manufacturing operations.
The plant will be located on a 4.7 acre site within the London Sustainable Industries Park. The Foresight Group has committed £11 million ($17.5 million) in funding to support the project, through the Foresight Environmental Fund and Foresight’s U.K. Waste Resources and Energy Investments Fund. The London Green Fund, which was launched by the London mayor’s office in 2011, was a cornerstone in the development of the FEF. The London Waste and Recycling Board and Investec Bank plc also provided the project with £7.9 million ($12.6 million) in senior debt financing.