Funding has been announced for a £30m combined heat and power (CHP) biomass facility in Sheffield.
The commitment to back the plant in the Holbrook area of the city has come from the Green Investment Bank (GIB) and private investor Equitix.
The GIB is a cornerstone contributor to the private Energy Savings Investments Fund, which is putting £14.6m into the facility. A similar amount of private capital is coming from the Equitix Energy Efficiency Fund.
The CHP plant is being developed by UYE (UK) and will generate more than 6.5MW of electricity, and has the potential to supply heat to more than 6,700 local homes and commercial properties at its expected completion in March 2017.
Principal contractor is Kantor Energy, biomass boiler and flue gas cleaning systems are being supplied by VAS Energy Systems International, electricity generation equipment is from Turboden and Veolia Energy Services has the operations and maintenance contract.
Once operational, the project will sell electricity to GDF Suez UK under a long-term power offtake agreement.
The development is expected to create 60 jobs during construction and a further 15 full-time positions once operational.
Ed Northam, head of investment banking at the GIB, said: “It is a project that typifies the role of the GIB in helping developers to utilise innovative technology to create new sources of green power that will cut carbon emissions and create important local benefits for communities.”
Stephen Brooks, director of UYE (UK), said: “It has taken us over five years and almost half a million pounds to get this project designed, consented and funded. We are absolutely delighted that the GIB and Equitix have had the courage and commitment to work with a local, small private company and fund this community-scale CHP ready project.
“We see that these community-scale energy generation projects are one of the ways to reduce carbon emissions, cut grid losses and generate useable, sustainable and affordable heat for local communities. This project is the first in our proposed portfolio of similar developments.”