The project uses gasification technology and will be the first project of its type in the UK to be funded by long-term project finance. It is being developed by Derby City and Derbyshire County Councils with assistance from sponsors Interserve PLC and Shanks Group PLC. The GIB will provide long-term loan financing alongside Germany’s Bayerische Landesbank and Japan’s Sumitomo Mitsui Banking Corporation. Each bank will provide a third of the loan funding, totalling up to £195 million.
The plant will process waste from households in Derby and Derbyshire generating enough electricity to power 14,000 houses. The project additionally includes running all Derby and Derbyshire’s household waste recycling centres. The plant will operate for 25 years following a 32 month construction period. It will recycle over 35,000 tonnes of materials per year diverting over 170 kilotonnes per year of waste from landfill.
The construction phase will employ 250 people and 34 new permanent roles will be created to operate the plant. The gasification technology will be supplied by Energos.
The project will be the first long term, project financed, municipal gasification plant in the UK, demonstrating the investment potential of this type of technology.
“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” said Shaun Kingsbury, chief executive of the UK Green Investment Bank. “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.”
UK Business Secretary Vince Cable added that the investment in Derby will secure local jobs and give the city the environmental infrastructure it needs to reduce household waste and generate renewable energy.
For additional information:
