The government has announced the first waste investment by one of the two fund managers appointed to invest in the sector in advance of the establishment of the Green Investment Bank.
Foresight’s UK Waste Resources and Energy Investments fund (of which the Department for Business, Innovation and Skills is as investor) is investing £2 million with a further £2m of matching private sector funding, in a £21m project to build a food and green waste processing plant in Dagenham.
In April 2012 BIS appointed two fund managers – Foresight and Greensphere to initially manage £80 million in small scale waste projects.
Foresight was appointed to invest £50m on behalf of UK Green Investments – the team established within BIS to drive government investment in low carbon infrastructure in preparation for the UK Green Investment Bank.
UK Green Investments has also appointed fund managers to look at energy saving and carbon reduction schemes.
Waste infrastructure has been identified as a priority sector, and the new facility will process 49,000 tonnes of organic waste a year - saving 16,325 tonnes a year of CO2 emissions over the same period.
Business secretary Vince Cable said: ”This project represents the first waste investment in the run up to the establishment of the UK Green Investment Bank, and 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 UK GIB is expected to become operational at the end of the year once it has received state aid approval.
Foresight Funds have committed £11m (This included £2m on behalf of UKWREI). This was matched by private sector investment of £2m, raising the equity investment to £13m. Senior debt of £7.9m is being provided by London Waste and Recycling Board and Investec Bank plc.