The U.K. Green Investment Bank provided 18 million pounds ($27 million) to build a facility in Cambridge, southeast England, that will include a biomass power plant and energy recovery unit for local hospitals.
Aviva Investors, the asset management arm of Aviva Plc (AV/), invested a further 18 million pounds from its 50 million-pound REaLM Energy Centres Fund, according to an e-mailed statement today from the Edinburgh-based GIB.
The money will be used to build an energy innovation center for Cambridge University Hospital’s National Health Service Foundation Trust. The centre will include a heat and power unit, a biomass system, efficient boilers and heat recovery from medical incineration and it will generate heat and electricity for local hospitals including Addenbrooke’s. It’s expected to save the trust more than 20 million pounds in energy costs over its 25-year lifetime.
“The development of U.K. energy centers is a very exciting new area for long-term investors such as pension funds,” Ian Berry, fund manager for infrastructure and renewable energy from Aviva, said in the statement. “They can achieve stable, diversified and relatively low risk income streams, while also helping to fund important infrastructure projects that deliver long-term savings and sustainability benefits to their clients.”
The GIB opened in November with 3 billion pounds of state funds to boost financing for low-carbon technology. Its priorities include offshore wind and energy efficiency and it’s already made investments in both these sectors.
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