Waste and bioenergy

UK Green Investment Bank investment in new green power plant in Derby

21 Aug 2014

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• New energy from waste plant will increase recycling, divert household waste from landfill and generate renewable electricity

• The innovative project uses gasification technology and will be the first project of its type in the UK to be funded by long-term project finance

The UK Green Investment Bank (GIB) is investing £64m into a new energy from waste plant in Derby. The project is being developed by Derby City and Derbyshire County Councils, alongside sponsors Interserve plc and Shanks Group plc. GIB will provide long-term loan financing alongside Germany’s Bayerische Landesbank and Japan’s Sumitomo Mitsui Banking Corporation, with each bank providing a third of the loan funding, totalling up to £195m.

The new facility 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 will generate enough electricity to power 14,000 homes. The project also involves running all Derby and Derbyshire’s household waste recycling centres. Following a 32 month construction period, the project will operate for 25 years.

The project will recycle over 35,000 tonnes of materials per year and divert over 170kt/year of waste from landfill.

The project will see 250 people recruited to work on construction of the new facility and 34 new permanent roles to operate it. The gasification plant will be supplied by Energos, a UK-based company supplying advanced gasification plants around Europe.

The project will be the first long term, project financed, municipal gasification plant in the UK. This is important in demonstrating the investment potential of this type of technology.


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.


Contacts

Further information on the project available on websites for the Shanks Group plc, Interserve Group plc, Derbyshire County Council and Derby City County Council.

For media enquiries contact Stephen Moir on 0330 123 2129 or email stephen.moir@greeninvestmentbank.com


Notes to editors

UK Green Investment Bank

The UK Green Investment Bank was launched in November 2012.  With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world.  It is a ‘for profit’ bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.

 

About the project

• Environmental impact: The project will recycle over 35,000 tonnes of materials per year and divert over 170kt/year of waste from landfill. It will reduce greenhouse gas emissions by 48,000 tCO2e per year

• Energy generation: 12MW which will generate enough electricity to power 14,000 homes

• Feedstock: Pre-treated household waste

• Expected Commission date: 2017

• Developer: Interserve Group

• Gasification technology provider: Energos

• Operations and maintenance: Shanks Group plc subsidiary Resource Recovery Solutions (Derbyshire) Ltd

• Debt providers: UK Green Investment Bank, Bayerische Landesbank and Sumitomo Mitsui Banking Corporation