Organic waste venture first to profit from GIB funds
A combined anaerobic digestion and in-vessel composting facility is the waste sector's first beneficiary of Green Investment Bank (GIB) funding.
The plant which will operated by TEG Group will process 49,000 tonnes of food and green waste a year is to be built in Dagenham, Essex, region and is expected to be operational in 2013.
Waste is one of the priority areas for the GIB which, through its UK Green Investment arm, has appointed two specialist fund managers to oversee £80m of investment in small scale waste infrastructure.
From this, Foresight's UK waste resources and energy investments (UKWREI) fund is investing £2m in the organic waste facility with a further £2m of matching private sector funding. The total project will cost around £21m to complete.
Commenting on the deal, Business Secretary Vince Cable said that it "sends a clear message to the market and to potential co-investors that we are committed to investing in the UK's green infrastructure".
The GIB is expected to become operational at the end of the year once it has received state aid approval.