Out-Law News 1 min. read

UK's Green Investment Bank to invest £50m in 'innovative' recycling and waste projects


The UK government-backed Green Investment Bank (GIB) is to invest in "innovative" smaller-scale recycling and waste projects through a new fund, it has announced.

The new Recycling and Waste LP (RAW) fund will be managed by Foresight Group, an investment manager which has previous experience providing finance to GIB-backed projects. Foresight intends to raise at least a further £50m from investors to match GIB's stake.

GIB chief executive Shaun Kingsbury made the announcement on a visit to the Birmingham BioPower plant project with Matthew Hancock, the UK government's business minister. The plant, which will divert up to 67,000 tonnes of recovered wood from landfill every year and produce enough electricity to power more than 17,000 homes once operational, was part-funded by the GIB through a previous fund managed by Foresight.

"Investing our capital through funds has proven to be an important and successful part of our investment strategy, allowing us to back a wider range of smaller projects right across the UK," said Kingsbury. "We've built a strong partnership with Foresight and look forward to it going from strength to strength."

"This new facility is a great example of the modern, advanced-technology infrastructure we need to see across the UK. It's the first time this technology will be used in the UK and the investment will benefit the local economy, with a local small business supplying the plant with wood that would have otherwise gone to landfill. We were delighted to provide the finance that allowed the project to go ahead," he said.

RAW will target UK-based, construction-stage projects incorporating a variety of recycling and waste technologies, including anaerobic digestion, waste wood and biomass, according to the announcement.

GIB was set up in October 2012 to provide finance to private sector projects which would contribute to the 'green economy'. Its priority funding sectors are offshore wind, waste recycling and energy from waste, non-domestic energy efficiency and support for the government's Green Deal.

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