Alkane wins 15-year council deal
Mansfield-based Alkane Energy is part of a consortium that has won a long-term food waste contract from three councils in North Wales.
Alkane, along with AIM-listed TEG Group, has won the 15-year contract from Denbighshire County Council, Conwy County Borough Council and Flintshire County Council. The contract, which has an option for a five-year extension, is the first of the Welsh Government's sponsored organic waste projects.
TEG and Alkane will create a joint venture company, to be called NEAT Biogas, which will build and operate a new 20,000 tonne-a-year anaerobic digestion plant to process the food waste supplied by the councils, together with additional third party food waste.
The facility will produce 1MW of electricity– sufficient to power 2,000 homes – and a digestate product, for use as a fertiliser in agricultural applications. It is anticipated that the AD facility will start operations in the first half of 2013.
Full year revenues for NEAT are expected to build to approximately £2m. TEG will own 70 per cent of the joint venture and Alkane the remaining 30 per cent.
