The U.K. Green Investment Bank said it’s lending 64 million pounds ($106 million) to an energy-from-waste project in Derby, central England.
That’s the government-backed bank’s one-third share of a long-term loan to the project by Derby City and Derbyshire County Council, it said today in an e-mailed statement. The other two-thirds will be split equally between Germany’s Bayerische Landesbank and Japan’s Sumitomo Mitsui Banking Corp. That would make the total loan worth 192 million pounds.
“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,” Green Investment Bank Chief Executive Officer Shaun Kingsbury said in the statement.
The bank aims to spur renewables and energy efficiency projects by leveraging private spending using its own cash. It’s been capitalized with 3.8 billion pounds of government funds since beginning operations in November 2012, and after allocating about 1.3 billion pounds through March this year, aims to use another 700 million pounds by next March.
A venture between Interserve Plc and Shanks Group Plc will build and operate the plant under a 27-year, 950 million-pound contract, the two companies said in a separate statement, which said the loan may total as much as 195 million pounds.
The project is due for completion in April 2017, at which point Shanks and Interserve will each inject 18 million pounds of subordinated debt, according to the statement.
The Derby project will recycle over 35,000 tons of waste per year and divert another 170,000 tons of waste from landfill to generate power, according to the GIB statement. It will create 34 permanent jobs and 250 temporary ones during construction, which will include a gasification unit supplied by Energos Ltd.
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