Private equity's stake in compost firm

private equity firm Bridges Ventures has bought a 22 per cent stake in listed waste composting company TEG Group, two days after the government said it wanted a 'zero waste economy'.

By The Newsroom

Published 17th Jun 2010, 21:58 BST

The firm invested 5.5m in the company listed on London's Alternative Investment Market (AIM), through a private placement. "It's well run and needed capital for medium-term expansion," said Bridges Ventures' Ian Hislop.

TEG Group composts food and garden waste using a patented technology. The disposal of such waste involves health and safety rules allowing the company to charge gate fees which are its main source of income.

Environment minister Caroline Spelman said on Tuesday the new coalition government wanted to divert as much waste as possible from landfill, in a zero waste drive.

TEG Group is collaborating with Germany's UTS Biogastechnik GmbH to widen feedstocks to process less solid materials using anaerobic digestion (AD) technology, capturing methane to generate electricity.

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