Green bank set to inject £3bn into low-carbon firms

The Government's £3bn flagship scheme to encourage private sector money into low carbon technology and initiatives is on the hunt for projects with which to formally launch in October.

Officials preparing the launch of the Green Investment Bank are understood to have met with a number of businesses about committing cash to a number of schemes, such as recycling plants. The UK Green Investments team, a precursor to the bank, has set up four funds to invest £180m in projects, though each one would typically be worth less than £30m and involve co-investing with the company involved.

A Department for Business, Innovation and Skills spokesman said: "Good progress is being made towards the establishment of the UK Green Investment Bank, which is expected to be operational later this year following state aid approval."

The spokesman said the officials are also looking at other initiatives, including offshore wind, waste recycling facilities, and energy-from-waste projects.

The bank will be run by several heavy-hitters from the private sector. The chairman is Lord Smith of Kelvin, chair of energy giant SSE and the 2014 Glasgow Commonwealth Games organising committee, while his deputy is Sir Adrian Montague, who is chairman of private equity group 31 and led the advisory group that set up the bank.

A senior director at a major waste management company said: "We are having a dialogue with the Government ahead of the formation of the Green Investment Bank. The UK has been a really bad place for waste management, for many years only behind countries in Europe like Greece and Portugal."

The bank will be based out of London and Scotland. Last week it emerged that the bank was finalising contracts to lease its Edinburgh headquarters, adjacent to the city's International Conference Centre. The process of appointing a chief executive is currently underway, which ministers hope will be finalised before the bank receives its expected approval from the European Union for state aid over the next few months.

A £21m organic waste facility in Dagenham Dock, run by the TEG Group, will confirm its funding today. It has received £2m from the Green Investment Bank and support from the Mayor of London.