The Green Investment Bank (GIB) has issued £50m fund to support small-scale recycling and waste projects in the UK.

Foresight Group, which will manage the Recycling and Waste (RAW) fund, will also raise a further £50m from private sector co-investors in order to match GIB’s investment.

UK Business Minister Matthew Hancock has announced the fund during a visit to the £47m Birmingham BioPower project, which is under construction in Tyseley.

The project is expected to divert up to 67,000 tons of recovered wood, which will be supplied by JM Envirofuels, from landfill annually in order to generate electricity required to power more than 17,000 homes.

Hancock said: "This investment by the Green Investment Bank will be used to fund biopower projects that will put the UK at the forefront of this innovative green technology, turning local waste wood to electricity.

"This state of the art plant in Birmingham will be the first of its kind in the UK. It uses a new type of gasification system and will not only power 17,000 homes and recycle waste more efficiently but will also boost the local economy and create 100 local jobs."

GIB chief executive Shaun Kingsbury said: "This new facility is a great example of the modern, advanced-technology infrastructure we need to see across the UK.

"It’s the first time this technology will be used in the UK and the investment will benefit the local economy, with a local small business supplying the plant with wood that would have otherwise gone to landfill."