The British government-backed bank that focuses on green energy projects is launching a new fund. It is dedicated to buying stakes in offshore wind energy in the UK.
The Green Investment Bank will put one billion pounds (1.25 billion euros) into projects in the sector, which has been hit by a number of cancellations of such projects in recent months.
The hope is the fund will attract new investors to the offshore wind market including sovereign wealth and pension funds.
The bank was set up two years ago to invest in – and make a profit from – wind, biomass and other environmentally low impact schemes.
Those find it difficult to raise money as they are considered too risky, or the returns are too long term for private sector investors.
Britain already has 3.6 gigawatts of installed offshore wind capacity but is counting on the development of other wind farms to help it cut carbon emissions in the electricity sector.
Over the last financial year, ending March 31, the Green Investment Bank has committed 668 million pounds (834 million euros) to 18 green energy projects.
It has made investments in a waste management centre on Merseyside and the purchase and upgrading of a biomass plant in Port Talbot, Wales.
Alongside the government money, an additional 1.9 billion pounds (2.4 billion euros) of private investment has also been committed to the projects, taking the total investment in Britain’s green economy over the period to 2.5 billion pounds (3.1 billion euros).
Many of the investments, however, are still under construction leading to a 5.7 million pound (7.1 million euros) loss for the year, the results showed.