The UK Green Investment Bank (GIB) has joined forces with a French finance group to provide funding worth £50 million for energy efficiency projects.
The cash will enable businesses to put in place energy efficiency measures such as combined heat and power plants, boilers, building retrofits and efficient lighting without having to fund the finance upfront.
Rampton Hospital in Nottinghamshire is the first project to benefit from the finance with a £5 million investment. It will install a combined heat and power plant, dual fuel boilers, biomass boilers and an effluent water treatment plant, which will improve wastewater quality and energy efficiency.
The hospital is expected to help save £1.7 million and cut 88,000 tonnes of carbon equivalent emissions – equivalent to taking around 2,500 cars off the road.
Shaun Kingsbury, Chief Executive of the UK GIB said: “Many organisations understand that energy efficiency measures make good commercial sense but with few financiers in this space, they simply cannot afford the initial investment. Our partnership with one of the industry leaders allows these organisations to realise cost savings from day one without having to fund the capital upfront.”
The green bank and Societe Generale Equipment Finance (SGEF) will provide £25 million each in total.