By Victoria Young
July 8 (BusinessDesk) - T&G Global is part of a biogas plant project in the Bay of Plenty which will receive $7 million from the Provincial Growth Fund.
New Zealand's biggest fresh produce grower will buy energy from Eco Gas Limited Partnerships, and allow it to build an organic waste recovery facility on two hectares of land next to its glasshouse tomato operation in Reporoa.
Pioneer Energy controlled-Eco Gas will receive a $7 million loan for the project which will convert more than 20,000 tonnes of organic food waste each year from local food manufacturers.
Regional Economic Development Minister Shane Jones says the project is the first waste-to-energy plant of such scale in New Zealand.
"The biogas produced can be used for fuel and could help achieve our carbon emission targets," he said. “If it proves commercially successful, it has the potential to act as catalyst for others being set up in regions nationwide.”
T&G last reported in February, having lifted full-year revenue 11.2 percent to $1.2 billion. However, the exporter said weather and tariff challenges saw net profit drop 63 percent to $8.3 million.
Shares of T&G last traded at $2.72, having fallen 5.2 percent this year. Germany's BayWa owns about 76 percent of the company.