RNS Number:3803T
Bioganix PLC
30 April 2008





                                                                April 30th 2008


                                  BIOGANIX PLC

                     Anaerobic Digestion Strategic Alliance


Bioganix plc ('Bioganix' or 'the Group'), the AIM listed waste management
services group, is pleased to announce that the Bioganix directors have entered
into an agreement with Kompogas AG ("Kompogas"), a Swiss-based manufacturer of
anaerobic digestion systems, and Kuttner GmbH ("Kuttner"), a German engineering
contractor, for the production of renewable energy from waste. The objective of
the agreement is for all three parties to jointly develop the UKAD market place
using a combination of each of the parties' skills and expertise.


Anaerobic Digestion

Anaerobic Digestion is the process whereby biodegradable material is broken down
in the absence of oxygen inside an enclosed vessel by micro organisms. The
process results in the generation of methane, carbon-dioxide (CO2) and other
gases. The process also generates solid and liquid residues known as digestate.
AD plants designed to produce gas for electricity generation have been operating
in Continental Europe and elsewhere for many years. UK uptake of AD technology
has historically been limited. The recent concerns over both waste disposal and
the desire to produce "green" electricity and heat have given rise to renewed
interest in AD technology in the UK. The UK Government is highly supportive of
the development of AD facilities. New grant schemes for AD have recently been
announced by DEFRA in addition to the recent Government announcement that energy
produced from anaerobic digestion of waste is most likely going to be eligible
for double Renewable Obligation Certificates ("ROC"s) in the near future.


Kompogas

http://www.kompogas.ch/index.php?id=13&L=1

Kompogas has been active in the AD sector since the early 1980s. The company, in
conjunction with its partner companies, has built over fifty AD plants worldwide
with the majority in Switzerland and Germany. Kompogas is also the operator of
many of these plants. The proven plug-flow, thermophilic, dry digestion
technology ensures high gas yields, reliable operation and a high quality
end-product digestate. Gas from plants is used in a number of applications
including:

   * Generation and sale of electricity using gas engines;
   * Export to the Gas Grid for domestic and commercial use;
   * Use as a road fuel in specially converted vehicles.

Kompogas plants from the outside resemble typical industrial premises. All
processing activities take place inside a sealed building with sophisticated
odour management techniques in place. A typical 30,000 tonnes per year plant
will have a footprint of approximately 1.5 Ha. with a processing building sited
thereon of approximately 4,000 square metres. Electrical and heat power output
from such a plant is used to power the AD process and make available a typical
surplus output of 7 Mw hours of electricity per year for sale and export to the
Electricity Grid and 6 Mw hours of heat per year for export to other users.

Axpo, a leading Swiss electric power producer, holds a 49 % stake in Kompogas.


Kuttner

http://www.kuettner.de/e-home.html

Kuttner is a German engineering contractor, which has experience of installing
Kompogas AD plants. Kuttner is based in Essen in Germany and has operating
divisions in approximately 12 countries worldwide. The company employs about 260
people and in 2007 had sales of Euro85 million. Kuttner has recently entered into a
licensing agreement with Kompogas for the design and construction of Kompogas
based facilities in the United Kingdom and Ireland.


UK Business Plan

In conjunction with Kuttner, Bioganix intends to build, own and operate Kompogas
AD plants in the UK fed by a variety of waste streams similar to those already
processed by Bioganix in the Group's existing composting facilities.

Bioganix sees significant synergies between the Bioganix and Kompogas
technologies, both from operational and technical perspectives. Kompogas
technology is likely to be combined with some elements of the Bioganix IVC
(in-vessel composting) and associated processes, depending on waste streams and
requirements. Under the terms of the agreement Bioganix has been granted the
first option of offering service provision using Kompogas technology with
respect to any public tenders or enquiries received by Kuttner or Kompogas, for
waste recycling or AD facilities within the UK.

UK-based Bioganix/Kompogas plants, like their overseas equivalents, are likely
to be sited on industrial land near to large centres of population and food
manufacturing activity. Access to farm land will be important for digestate
disposal as fertiliser.

Bioganix Managing Director, Nick Helme commented:

"We see this as a major opportunity for both Bioganix and Kompogas. The ability
to leverage our technical development skills and knowledge of the organic waste
recycling industry in UK to launch the Kompogas technology gives the joint
venture a significant head start. To combine the Bioganix process with a
technology that is able to generate renewable energy is an important progression
for us.

"We are obviously delighted that a large and experienced builder and operator of
waste recycling plants within Europe has recognised the similar skills and
technology of Bioganix and selected us to be their partner to develop the UK
market for recycling and renewable energy."

Contacts:

Nick Helme                      01568 619115
Managing Director - Bioganix Plc

Julian Morgan                   01568 619101
Finance and Commercial Director - Bioganix Plc

Mike Coe                        0117 933 0020
Blue Oar Securities Plc

Tom Cooper / Paul Vann          020 3043 4162
Winningtons                     0797 122 1972



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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