The Green Investment Bank (GIB) is investing £2m in a sewage heat recovery system installation programme across Scotland through the Energy Savings Investments fund.
An additional £2m of private sector capital has been mobilised from infrastructure investor Equitix’s Energy Efficiency fund.
The pilot project will see heat extracted from waste water intercepted from Scottish Water’s Galashiels network. The heat will then be sold to Borders College under a 20-year purchase agreement resulting in energy and cost savings and a reduction in carbon emissions.
Installation of the system is scheduled to start later this month and completion is expected by the end of the summer.
It will be the first time the sewage heat recovery technology, developed by Sharc Energy Systems, has been deployed in the UK.
This is the 50th transaction GIB has funded since it was formed in October 2012, committing over £2bn to transactions worth over £8bn, in every part of the UK.
GIB chairman Lord Smith of Kelvin said: “Our 50th investment neatly sums up what we are trying to achieve. We are backing the deployment of innovative new technology across the UK to produce renewable energy, cut energy use, cut costs and improve the UK’s green performance.
“It is enabling Sharc to equip Borders College with pioneering technology in an arrangement that I hope can be replicated elsewhere in the country.”
This follows claims this week that chancellor George Osbourne could announce, in his emergency budget on 8 July, a plan to sell a Government share of the GIB.