The UK Green Investment Bank (GIB), Germany's Bayerische Landesbank and Japan's Sumitomo Mitsui Banking Corporation, have provided the loan funding, totalling up to £195 million (US$323 million). Each bank has provided a third of the total funding.
The 12 MW mechanical biological treatment (MBT) plant and gasification unit in south Derby will process waste from households in Derby and Derbyshire. It will see an increase in the amount of waste that is recycled with the remaining treatable waste converted into energy using an innovative gasification technology. The project also involves running all Derby and Derbyshire's household waste recycling centres.
The project will recycle over 35,000 tonnes of materials per year and divert over 170kt/year of waste from landfill.
The project is expected to be operational by April 2017. The contract period is 27 years. It worths about £950 million over the entire length of the contract.Shaun Kingsbury, chief executive, UK Green Investment Bank, said:
This project provides Derby and Derbyshire with the modern, sophisticated infrastructure it needs to manage its household waste in a way that's green and affordable. 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.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.Business Secretary, Vince Cable, said:
The UK Green Investment bank, capitalised with £3.8 billion of government funding, has been set up to help businesses make the transition to a green economy right across the country.This investment in Derby will secure local jobs and give the city the environmental infrastructure it needs to reduce household waste and generate renewable energy. Through our industrial strategy we are working in partnership with business to give companies the confidence to invest, securing green jobs and a stronger UK economy.