The Green Investment Bank (GIB) has announced a £20m investment in a waste-powered energy facility in South Gloucestershire that it says will save more than 2m tonnes of carbon dioxide emissions and power thousands of homes.
The rail interchange and energy recovery centre Severnside Energy Recovery Centre (SERC), worth £244m, can convert up to 300,000 tonnes of household waste into energy, preventing it going to landfill.
The project is the result of an agreement between the West London Waste Authority and a consortium led by recycling firm SITA UK, the Scottish Widows Investment Partnership (SWIP) and the Itochu Corporation.
The energy produced would power the equivalent of 50,000 homes, save more than 2m tonnes of CO2 over its life and create a number of jobs during both the construction and operation phases.
The Green Investment Bank has contributed £20m of investment, while other investors include the Credit Agricole Corporate & Investment Bank, Bank of Tokyo-Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corporation and Mizuho Bank.
Shaun Kingsbury, chief executive officer of GIB, said. “With this project, every £1 of GIB investment brings £11 of other capital, much of it from international investors.
“The project will bring about an immediate environmental benefit; instead of residual waste from 1.6 million people being sent to landfill each year, it will be used to create enough energy to power the equivalent of 50,000 households.”
In October, the GIB announced it had pledged £11m of investment to the refurbishment of a biomass plant in Wales, which is already powering 28,000 homes.