The funding comprises of £11m committed into a new special purpose vehicle (SPV) by Foresight Group funds; a £2 investment sourced by Foresight’s UK Waste Resources and Energy Investments Fund, taking the total equity investment to £13m; and a senior debt facility of £7.9m provided by London Waste and Recycling Board (LWARB) and Investec Bank.
To be located on a 4.7-acre site in London Sustainable Industries Park, the facility will also gain from the £10m for infrastructure development commitment provided to the park by the Mayor of London.
The proposed facility will process food and green waste employing anaerobic digestion (AD) technology, with 30,000 tonnes processing capacity per annum.
In addition, it will, have an in-vessel composting (IVC) technology facility, with 19,000 tonnes processing capacity per annum.
Dagenham’s organic waste facility will also generate approximately 1.4MW of electricity per annum to be used by the Park’s tenants.
A new SPV TEG Biogas (London) has been formed for the construction and operation of the new plant. TEG will construct and operate the plant on behalf of the SPV as per an engineering, procurement and construction contract worth £16m.
Commenting on the developments, TEG Group CEO Mick Fishwick said, "We are delighted to have secured funding for our first major project in the South East, which is set to become a flagship operation for TEG and which will make a significant contribution to London becoming a model European city for recycling."
Work on the facility is due to commence in September 2012, with completion scheduled for the first quarter of 2014.
