The UK Green Investment Bank (GIB) is investing £64m into a new energy from waste plant in Derby.
The project is being developed by Derby City and Derbyshire County Councils, alongside sponsors Interserve and Shanks Group.
GIB will provide long-term loan financing alongside Germany’s Bayerische Landesbank and Japan’s Sumitomo Mitsui Banking Corporation, with each bank providing a third of the loan funding, totalling up to £195m.
The new facility in south Derby will process waste from households in Derby and Derbyshire.
It will see an increase in the amount of waste that is recycled with the remaining treatable waste converted into energy using an innovative gasification technology.
The project will generate enough electricity to power 14,000 homes. The project also involves running all Derby and Derbyshire’s household waste recycling centres.
Following a 32 month construction period, the project will operate for 25 years.
The project will recycle over 35,000 tonnes of materials per year and divert over 170kt/year of waste from landfill.
The project will see 250 people recruited to work on construction of the new facility and 34 new permanent roles to operate it. The gasification plant will be supplied by Energos, a UK-based company supplying advanced gasification plants around Europe.
The project will be the first long term, project financed, and municipal gasification plant in the UK.
UK Green Investment Bank chief executive Shaun Kingsbury said: This project provides Derby and Derbyshire with the modern, sophisticated infrastructure it needs to manage its household waste in a way that’s green and affordable. Instead of waste being sent to landfill, the project will ensure that more is recycled with the remainder used to create renewable electricity which will be sold to the Grid.
The innovative financing of the project creates an important demonstration effect that will, in the long run, help to lower the cost of finance for innovative, green technology of this type.
Business secretary Vince Cable said: The UK Green Investment bank, capitalised with £3.8 billion of government funding, has been set up to help businesses make the transition to a green economy right across the country. This investment in Derby will secure local jobs and give the city the environmental infrastructure it needs to reduce household waste and generate renewable energy. Through our industrial strategy we are working in partnership with business to give companies the confidence to invest, securing green jobs and a stronger UK economy.