The UK government is planning to sell its one third share in Urenco to help fund the new green investment bank, which is being set up to invest in low-carbon technology.

Urenco, which makes enriched uranium for nuclear power, is jointly owned by the UK government, Dutch government and two German power companies, RWE and E.ON, guardian.co.uk reported.

In the spending review held this week, the chancellor, George Osborne said that the government will put £1bn into the bank and it anticipates to find the extra funds from the asset sales.

Urenco was recently valued by the Adam Smith Institute thinktank at £3bn.

However, the giving up of government hold of Urenco can prove to be controversial with anti-nuclear campaigners, including many in Huhne’s own Liberal Democrat party, according to the news agency.

In 2006, the Labour government had failed to sell its share in Urenco as it was blocked by the other shareholders. This may raise concerns about how long any fund-raising will take.