An anaerobic digestion (AD) plant is to be built in Durham with support from the new Recycling and Waste (RAW) fund from the Green Investment Bank (GIB).
The plant will receive £4m backing in total, £2m from the GIB fund and another £2m from SQN Asset Finance Income Fund.
This will be the first investment from the RAW fund which was announced in February and is managed by Foresight Group.
Foresight Group said the fund already had an “extensive pipeline” in place.
The AD plant will also receive revenue under the feed-in-tariff and renewable heat incentive schemes.
It is expected that 3,400 MWh electricity will be produced over its 20 year lifespan in addition to 3,300 MWh heat.
Williams Industrial Services has been appointed to construct the plant as well as provide ongoing maintenance services.
Charles Sheldon, left, investment analyst at Foresight, said: “We’re thrilled to announce the first investment by the RAW fund.
“The short time taken, just eight weeks, from the announcement of the fund to the completion of the first investment is a significant achievement and is a reflection of the volume of pipeline for AD, the demand for AD and the knowledge of the sector by our co-investor SQN.”