The station is to be built on a ten acre site in Derry/Londonderry at the Londonderry Port and Harbour Commissioners land at Lisahally, in Northern Ireland.
The Foresight managed fund, UK Waste Resources & Energy Fund has made the investment, which is the first GIB funded project in Northern Ireland.
The Evermore project, which is expected to become operational during 2015, is forecast to be the largest renewable energy project in Northern Ireland, increasing the amount of renewable electricity currently generated in Northern Ireland by approximately 10%, according to Foresight Group.
Over the expected 20 year lifetime of the project, it is forecast to supply renewable electricity equivalent to the needs of more than 25,000 homes a year, create 200 construction jobs and more than 20 full time jobs once operational.
Over the project life it is forecast to save 2 million tonnes of wood from going to landfill and is expected to deliver a reduction in greenhouse gas emissions of around 3.7 million tonnes.
The electricity will be supplied to the national grid and the heat output will be used by an integrated wood drying facility, supplying fuel for new biomass boilers within Northern Ireland. The project will be fuelled by around 110,000 tonnes per annum of wood secured under a long-term fuel supply contract from Stobart Biomass.
Shaun Kingsbury, chief executive, Green Investment Bank, said: “Today’s announcement will substantially increase Northern Ireland’s renewable energy capacity. Not only will the project save the same amount of carbon as taking around 77,000 cars off the road, it will also make use of over two million tonnes of wood, a valuable energy resource that would otherwise have gone to landfill.”
“Our mission is to crowd in private sector capital, so I’m especially pleased to see that every pound of GIB investment brought in more than £3 of private funding.”
Business Secretary Vince Cable said:” The first deal done in Northern Ireland is a landmark moment for the UK Green Investment Bank and I’m confident that there will be more to come.”
“Today’s investment will have a significant green impact, reducing carbon emissions and diverting wood from landfill. It is also good news for the local area, creating jobs and building a stronger economy.”