A £47.8 million recovered wood gasification plant is to be built in Birmingham after receiving investment from the Green Investment Bank and a consortium of financiers.
The 10.3MW plant is expected to divert 67,000 tonnes of recovered wood from landfill and produce enough electricity to supply 10,000 homes.
Funding has come from the UK Green Investment Bank, Foresight Group Balfour Beatty, Eternity Capital Management, GCP Infrastructure Fund and developer Carbonarius.
It will be the first plant of its kind in the UK and is expected to become operational in early 2016.
UK Green Investment Bank chief executive Shaun Kingsbury said: “As the UK works towards its targets to generate more power from green sources, it’s important that we bring on new technologies. I’m pleased the Green Investment Bank has been able to support the first gasification plant of its kind in the UK and hope it offers a positive demonstration effect that others will follow.“
Business Secretary Vince Cable said: “It is encouraging to see this innovative new technology coming to the UK for the first time. This investment will create green jobs and help the environment by reducing carbon emissions and converting wood diverted from landfill into cleaner energy for thousands of homes and businesses. It is also good news for the local area helping to build a stronger economy by creating over 100 private sector jobs in Birmingham.”
Eternity Capital Management director Alon Laniado added: “Eternity Capital is excited to fund this opportunity and to work alongside partners in delivering this project which contributes to providing treatment solutions for recovered wood and to meeting EU emissions targets. This investment reflects Eternity’s strategy to build a portfolio of waste-to-energy projects as part of its wider focus on waste and environmental services.”