27 March 2008 Australian Stock Exchange Company Announcements Office Exchange Centre Level 1 20 Bridge Street Sydney NSW 2000 ANAECO COMMENCES UK SITE ASSESSMENT AnaeCo (ASX: ANQ) has commenced a Site Assessment and Identification Study with a view to successfully entering the UK waste management market. In accordance with the objectives outlined in its Prospectus, AnaeCo has already undertaken an analysis of existing, planned and potential sites in the UK, including a list of the ‘Top 10’ local authorities to whom AnaeCo’s DiCOM® System will be most relevant. Construction of AnaeCo’s first facility in Perth, for the Western Metropolitan Regional Council is already well underway, with completion scheduled for June 2008. Separately, the company has been short listed to tender for a second Australian facility near Melbourne. Tom Rudas, Managing Director of AnaeCo says: “Population density and the regulatory environment* mean that the momentum away from landfill to alternative waste technologies is even greater in UK than in Australia. Local authorities there are urgently seeking waste recycling solutions and right now there is no dominant technology. It’s important for AnaeCo to establish a reference facility in the UK, as well as Australia, to showcase our unique competitive advantages and to help win market share.” AnaeCo has appointed a specialist, UK-based environmental science and engineering consultancy to complete the Site Assessment and Identification Study. Completion of the study, including an evaluation of site acquisition options, planning and permitting, is expected within 6 months. The main features of AnaeCo’s DiCOM® waste recycling technology is that it recycles 80% of the municipal waste stream, it has a plant footprint up to 85% less than most alternatives, it can be located within existing waste transfer stations, it is scaleable, produces renewable energy and reduces carbon emissions. ENDS For further information, please contact: Tom Rudas, Managing Director (08) 9361 4777 AnaeCo Ltd David Lymburn, Company Secretary (08) 9361 4777 AnaeCo Ltd David Michie 0411 453 404 Mosaic Reputation Management * UK regulatory environment applicable to municipal solid waste The UK is bound by the European Union Landfill Directive (99/31/EC) which sets mandatory targets for the reduction of biodegradable municipal waste sent to landfill. Targets have been set for EU member countries and the targets applicable to UK are; • by 2010 to reduce biodegradable municipal waste landfilled to 75% of 1995 levels; • by 2013 to reduce biodegradable municipal waste landfilled to 50% of 1995 levels; and • by 2020 to reduce biodegradable municipal waste landfilled to 35% of 1995 levels. To implement the EU Landfill Directive the UK Government has introduced the Landfill Allowance Trading Scheme (LATS) under which local authorities have been allocated decreasing allowances for the maximum amount of biodegradable waste they can landfill each year until 2020. The scheme will see progressive reductions in the total amount of biodegradable waste which may be landfilled under permitted allowances. These landfill allowances are tradable between the local authorities. Local authorities that exceed the limit set by the allowances they hold will be fined £150 for every tonne they are over the limit in a target year. It has been reported that in 2005/06 all local authorities were operating within the permitted allowances. However the impending reduction to 75% of 1995 levels by 2010 is looming as a hurdle for many. In addition to LATS there is Landfill Tax which increases the price of waste sent to landfill. This is a current direct incentive to reduce landfilling of biodegradable organic waste and is applicable to all such waste sent to landfill. Currently the rate of landfill tax is £24 per tonne and is scheduled to increase by £8 per tonne per annum until at least 2010/11.
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