The UK Green Investment Bank has launched a new £50 million fund that will target smaller-scale, innovative, recycling and waste projects across the UK.
The Green Investment Bank was created by the government with that aim to use its finance to back green projects on commercial terms and mobilise other private sector capital into the UK’s green economy. One of the bank’s key targets requires an investment of £330 billion in the UK’s green sectors by 2020.
The new fund, Recycling and Waste LP (RAW) will be managed by Foresight Group and will raise at least a further £50 million from private sector co-investors to match the investment made by the bank. The fund is described as already having an “extensive pipeline” in place.
Making the announcement, business minister Matthew Hancock MP said, “This investment by the Green Investment Bank will be used to fund biopower projects that will put the UK at the forefront of this innovative green technology, turning local waste wood to electricity.
“Today I have been able to see first-hand the work that is being done to get projects off the ground.”
The announcement of the new fund was made during a visit to the Birmingham BioPower project , which is currently under construction. The £47 million project will divert up to 67,000 tonnes of recovered wood from landfill every year. The plant is expected to produce enough electricity to power more than 17,000 homes.
“Investing our capital through funds has proven to be an important and successful part of our investment strategy, allowing us to back a wider range of smaller projects rights across the UK,” commented Shaun Kingsbury, chief executive of the Green Investment Bank.
Photo: perfortunasonosiculo via Flickr