Green Investment Bank mobilises more than £5bn funding for 37 renewable energy projects in two years

 

Lord Smith, Chairman, Green Investment Bank
Lord Smith, Chairman, Green Investment Bank

Britain’s state-owned Green Investment Bank today celebrates its second birthday, having mobilised more than £5 billion of investment into renewable energy projects across the UK over the past two years since opening its UK head office in Edinburgh.

Set up in October 2012, it began operations as the first dedicated green bank in the world – backed with £3.8bn of public capital – to accelerate investment in green energy infrastructure.

Since then, the bank has committed to invest in 37 new projects with £1.6bn of its own capital. All of these investments have been both green (delivering a material, positive environmental impact) and profitable.

For every £1 the bank invests, it mobilises a further £3 from the private sector, often from international investors. In total, it has backed projects that will see more than £5bn of new energy infrastructure projects go ahead. GIB has co-invested alongside more than 70 domestic and international financiers.

Every one of GIB’s investments has been made on fully commercial terms and its current portfolio of investments is expected to deliver an annual return of 9%. It is projected to make an annual operating profit of more than £10 million a year.

British Govt Business Secretary Vince Cable  – who holds Cabinet responsibility at Westminster for the bank – said: “Government action was necessary to jump start investment in cleaner, greener technology and the bank is delivering. GIB has given investors the confidence to back projects that simply would not have happened without it.”

Bank chairman Lord Smith of Kelvin (who is also part time Chairman of the eponymous Devolution Commission on more powers for Holyrood) said: “I am especially proud of the fact that we are investing in every part of the UK, from the Highlands of Scotland to Northern Ireland, Wales and all parts of England.

“Every pound we invest and every project we support strengthens our position as the most active investor in the UK’s green economy.”

 

GIB-announced transactions:       

1: where no fund manager is listed the investment was made directly by GIB.    

Project GIB (£m) Total (£m) Fund Manager 1
Citi data centre retrofit 2.6 5.2 SDCL
TEG Biogas Plant, Dagenham 2.0 20.9 Foresight
Greenlight Anaerobic Digestion Project 7.8 16.0 Greensphere
Walney Offshore Wind Farm 45.6 224.3
Drax Biomass Conversion 100.0 990.0
Wakefield Waste PFI 30.4 121.7
Gloucester Waste PPP 46.8 185.4
Green Deal Finance Company 125.0 168.7
Addenbrooke’s Hospital Energy Efficiency Retrofit 18.4 36.9
Rhyl Flats Offshore Wind Farm 57.5 115.1
Roundwood Biomass Boiler Platform 4.9 10.0 Equitix
Kingspan Building Retrofit 0.4 0.8 SDCL
Schools Biomass Platform 0.4 0.9 Equitix
Distillery Biomass Platform 1 (inc. Tomatin) 0.6 1.2 Equitix
Evermore Waste to Energy Plant 20.2 81.3 Foresight
Port Talbot Biomass Plant 11.3 24.9 Greensphere
London Array Offshore Wind Farm 58.6 266.0
West London Waste PFI 20.0 223.7
NCP Low Energy Lighting Project 4.2 8.8 SDCL
Merseyside Waste PFI 20.0 335.5
Birmingham Biopower Gasification Plant[1] 17.6 46.9 Foresight
Societe Generale Equipment Finance Energy Efficiency Plant 25.0 50.0
Bernard Matthews Boiler Replacement 12.0 24.8 Equitix
St. Bartholomew’s Hospital Energy Efficiency Retrofit 1.3 2.6 SDCL
Cheltenham General Hospital CHP Project 1.2 3.2 Aviva
Gwynt y Mor Offshore Wind Farm 220.0 440.0
Westermost Rough Offshore Wind Farm 240.8 888.4
Distillery Biomass Platform 2 1.9 3.8 Equitix
Willen Anaerobic Digestion Project 7.5 15.0 Foresight
SME EE Platform 1.0 2.0 SCDL
Northern Ireland on-farm anaerobic digestion: PAR Renewables 1.5 3.0 Foresight
Northern Ireland on-farm anaerobic digestion: Bridge Energy 1.7 3.5 Foresight
Speyside CHP Project 12.7 74.0
Derby Energy from Waste Plant 64.0 191.0
De Lage Landen Funding Alliance 25.0 50.0  

 

 

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