UK GIB invests in new green power plant in Derby
The UK Green Investment Bank (GIB) is investing £64 million (€80.8 million) 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, with each bank providing a third of the loan funding, totalling up to £195 million.
The new facility in south Derby will process waste from households collected from 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 a gasification technology.
The project will recycle over 35,000 tonnes of materials per year and divert over 170kt/year of waste from landfill, generating enough electricity to power 14,000 homes. It 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.
UK-based Energos will supply the gasification plant. The project will be the first long term, project financed, municipal gasification plant in the UK. This is important in demonstrating the investment potential of this type of technology.
'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,' says Shaun Kingsbury, CEO of UK GIB.
He adds: '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.'