update

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.