The Green Investment Bank has opened its wallet for the first time – on an offshore wind project. The bank bought a quarter (24.95%) of the Rhyl Flats wind farm from German power firm RWE for £57.5million.

The first buy for the UK’s new lending body for green energy projects is designed to free up cash for the wind farm’s owner so it can invest in more projects.

Eight kilometres off the north Welsh coast, the wind farm’s 25 Siemens turbines stand in water which is an average of eight metres deep and it has been operating since March 2010.

Shaun Kinsgbury, chief executive of the UK Green Investment Bank said offshore wind is a “priority sector” for the fund.

He said: “Rhyl Flats was an ideal investment for us as it helps to develop the market for buying and selling operating offshore wind assets, allowing the release of capital back to the original developers, which will be invested in new renewable projects in the UK. At the same time as developing a market, this investment will deliver a commercial return to the bank.”