GIB plugs £64m in green power plant

The environment-focused UK lender is teaming up with German and Japanese banks to provide £195m of long-term debt to the south Derby facility.

The Green Investment Bank (GIB), the environment-focused lender backed by the British government, has invested £64 million (€80.4 million, $106.1 million) in the country’s green power sector.

It will provide long-term loan financing alongside Germany’s Bayerische Landesbank and Japan’s Sumitomo Mitsui Banking Corporation to a waste-to-energy plant in Derby, England. The two banks are expected to provide a third of the long-term debt each, totaling up to £195 million, according to a statement.

The project is being developed by Derby City and Derbyshire County Councils, alongside sponsors Interserve plc and Shanks Group plc, the statement said.

The new facility in south Derby will process waste from households in Derby and Derbyshire, with the remaining treatable waste converted into energy using an innovative gasification technology. The project, due to generate enough electricity to power 14,000 homes, involves running all Derby and Derbyshire’s household waste recycling centres.

The facility is expected to operate for 25 years after a 32-month construction period. It will recycle over 35,000 tonnes of materials per year and divert over 170 kiloton per year of waste from landfill.

250 construction jobs are expected to be created for the new facility and 34 new permanent roles will be needed to operate it, the statement said.

The gasification plant will be supplied by Energos, a UK-based company supplying advanced gasification plants around Europe.

“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,” said Shaun Kingsbury, chief executive of GIB.