An anaerobic digestion plant in the North East of England is the first project to receive investment from the newly opened UK Green Investment Bank.
The bank, which was opened by business secretary Vince Cable, has been funded with £3 billion of government money and aims to mobilise additional private capital to make a significant contribution to the development of a green economy.
The construction of an anaerobic digestion plant at Teesside is the first of six planned over the next five years, making it the largest single anaerobic digestion project in the UK. The investment, made through fund manager Greensphere Capital, is part of a £80 million investment programme by UK Green Investment Bank in small waste projects.
The initial £8 million of funding for the energy from waste plant should attract a further £8 million of matching private sector funding.
Vince Cable said: "The Green Investment Bank - a key coalition pledge - is now a reality. It will place the green economy at the heart of our recovery and position the UK in the forefront of the drive to develop clean energy.
"Three billion pounds of government money will leverage private sector capital to fund projects in priority sectors from offshore wind to waste and non domestic energy efficiency, helping to deliver our commitment to create jobs and growth right across the UK."
UK GIB will also invest £5 million to retrofit Kingspan’s UK industrial facilities with systems and services that will reduce its energy consumption by as much as 15%.
Earlier this year the bank was established as a public company, UK Green Investment Bank plc. Following state aid approval from the European Commission last month it is now operational as an independent bank and open for business.