The Green Investment Bank (GIB) has approved £28.25m funding for a 12.5MWe energy-from-waste (EfW) plant in Lanark, Scotland.
The £111m project, which also includes the construction of an adjacent MRF, will recycle more than one million tonnes of materials including plastics, metals, paper and aggregates during its lifetime.
It is expected that the MRF will become operational in January 2017, with the complete plant starting operations later that year in June.
The EfW plant is unique to the UK because it combines fluidised bed gasification technology and refuse-derived fuel.
The electricity produced from the facility will go to the national grid, while the heat generated will be used to assist the operation of the MRF.
It is expected that the facility will take household waste from several local authorities and commercial waste from the Glasgow and Edinburgh regions.
The money originated from the GIB’s UK Waste & Resource & Energy Investments fund which is managed by Foresight. M+W Group has been appointed as the main contractor.
The project is also backed by equity investment from Levenseat and senior debt from Investec Bank.
GIB chief Shaun Kingsbury said: “This first-of-kind project is the latest innovative example of how the UK is modernising its waste management infrastructure.”